bluuebunny/crossref_metadata_2025 huggingface dataset:
Expatriate-owned Small Businesses: Measuring and Accounting for Success
Authors: Blackwood Tony , Mowl Graham
Published: July 2005

TONY BLAcKwoOD AND GRAHAM MowL ARE both lecturers at the University of Northumbria, England. this paper aims to identify and account for patterns of success and failure among small, expatriate-owned businesses operating in the tourism service sector of the major resorts of the Costa del Sol in Southern Spain. This group of businesses is particularly interesting because they have acquired a reputation for economic instability and relatively high rates of business failure. Furthermore, the need has been argued for both area and industry specific research on small business failure in order to gain a more contextual understanding of their problems. To understand any patterns of business success and failure it is necessary to investigate not only the behaviour of business owners but also the more general economic and social processes affecting the industrial sector and the locality in which the firm operates. The paper assess the tourism industry and in particular the role of small businesses within the tourism-related sector. It also investigates the background, aims and business management practices of individual entrepreneurs and attempts to use these findings to generate possible explanations of the patterns of business success detected.
Influences on the Supply of Informal Venture Capital in the UK: An Exploratory Study of Investor Attitudes
Authors: Mason Colin M. , Harrison Richard T.
Published: July 2005

COLIN MASON IS PROFESSOR OF Economic Geography at the University of Southampton, England; Richard Harrison is Director of the Centre for Entrepreneurship and Professor of Management, University of Aberdeen, Scotland. The need to increase the availability of small-scale early stage venture capital has been recognised as a key factor in the development of an entrepreneurial economy. Informal venture capital plays a key role in financing the earliest stages of entrepreneurial growth ventures. This paper is an exploratory attempt to identify the factors that influence the supply of informal venture capital. A questionnaire survey of business angels sought to examine the macro-economic factors that influence the proportion of their personal investment portfolio allocated to investments in unquoted small businesses. The findings indicate that tax is the most significant influence on the willingness of business angels to make such investments whereas the economic environment-the rate of economic growth, interest rates and the rate of inflation-exerts a much mote modest influence.
The Implementation of Reengineering in SMEs: A Grounded Study
Authors: Mcadam Rodney
Published: July 2005

DR. RODNEY McADAM IS A SENIOR LECTURER in the School of Management, University of Ulster, Northern Ireland. The aim of this paper is to determine the critical success factors for the implementation of reengineering in small and medium-sized enterprises (SMEs). Reengineering has developed from a background in large enterprises. Existing methodologies mainly assume a large organisation setting with large-scale resources dedicated to bringing about the large-scale reengineering changes. The literature contains many studies on reengineering theory, applications and critical success factors: however, they are almost all based on large enterprises in either the public or private sectors. The paucity of research involving rieengineering and SMEs comes from two factors. First, reengineering is still a relatively new management approach and has yet to reach SMEs fully from the initial large organisation starting point. Second, there is some remaining doubt as to whether large-scale reengineering is applicable to SMEs owing to resource constraints. The research involves a literature review and an inductive grounded theory approach using multiple case studies. In total, 23 SMEs case studies involving research-based workshops were examined and analysed to determine critical success factors f'oi reengineering implementationi. The imain findings were that the kev categories of success factorS in reeingineering in SMEs are resctues, miiarket envir-onnment, customerls and(: strategy, leadership, flexibilitv andl change orientationi, structutre, methodology an-d measureinermt. Tiw componen-t factors within these categories were found to diffeir significantly from those of large organisations in a uumbhe of cascs.
TQM in Non-Manufacturing SMEs: Evidence from the UK Farming Sector
Authors: Walley Keith
Published: July 2005

KEITH WALLEY IS SENIOR LECTURER IN Marketing at Harper Adams University College, Shropshire, England. Total Quality Management (TQM) is one of the most powerful concepts available to managers today. Many firms have adopted it and much has been published on the subject. However, most of the literature focuses on applications of TQM within large organisations that operate in the manufacturing sector. This paper aims to redress the situation by outlining a study into TQM in the UK farming sector. A postal survey was used to gather data and an expert panel employed to generate insight into the findings. In terms of the attitudes of the respondents and the management practices employed, the survey reveals that the only statistically significant differences between those farms that employ a formal programme of TQM and those that do not, concern the understanding of the respondents of their role in the supply chain. It is argued, however, that while this difference is small, it may well constitute a significant competitive advantage. The paper concludes that while further research is needed to validate and explain the findings, TQM may play a valuable role in the operations of SMEs which reside in non-manufacturing sectors.
The Relationship between Training and Small Firm Performance; Research Frameworks and Lost Quests
Authors: Patton Dean , Marlow Sue , Hannon Paul
Published: July 2005

DEAN PATTON IS PRINCIPAL LECTURER in corporate strategy, Sue Marlow is principal lecturer in industrial relations, and Paul Hannon is academic director at the Leicestershire Centre for Enterprise, all at de Montfort University, England. In recent years it has been acknowledged that the take-up of training and development opportunities within the United Kingdom has been generally poor and that this has had a detrimental effect upon national productivity and competitiveness (Keep and Mayhew, 1997). It is noticeable that smaller firms in particular are reluctant to engage with formal training initiatives regardless of the incentives offered (Maton, 1999; Jennings and Hawley, 1996; Stanworth and Gray, 1992). To support greater take-up of such initiatives, policymakers and academics have sought to find a relationship between training and the performance of firms. The extant literature on this subject is inconclusive and a number of criticisms have been made witlh reference to the research design and methodology employed (Westhead and Storey, 1997). This paper proposes that a more focused research design to the subject is required and puts forward a model that would address many of the concerns raised (Westhead, 1996; Westhead and Storey, 1997). It is suggested that the search for statistical significance may actually be inappropriate, given the number of variables in the relationship. The model would, however, provide a framework within which the importance and interaction of such variables can be more clearly analysed and evaluated.
Breaking Down the Barriers: Using Focus Groups to Research Small and Medium-sized Enterprises
Authors: Blackburn Robert , Stokes David
Published: July 2005

DR. ROBERT BLACKBURN IS HSBC Professor of Small Business Studies and director of the Small Business Research Centre, Kingston University, England, and Dr. David Stokes is assistant director of the Small Business Research Centre at Kingston University. This paper examines the use of a focus group method for investigating business owners. The method is almost absent in the study of business owners or their enterprises, or has been used as a precursor to quantitative-based research. It was found that the organisation, running and analysis of focus groups is resource intensive. In return, the method provides a richness of data uncommon even in many face-to-face data collection strategies. The method adopted is shown to unearth the motivations, rationales and experiences of business owners in relation to their succession strategies. The paper concludes with a discussion of the ability of the method to provide stand-alone results and help overcome the culture gap between researchers and business owners.
The Internet and e-commerce: An Opportunity to Examine Organisational Learning in Progress in Small Manufacturing Firms?
Authors: Chaston I. , Badger B. , Mangles T. , Sadler-Smith E.
Published: July 2005

I. CHASTON, B. BADGER, T. MAN(JI ES and E. Sadler-Smith are with the Group Organisational Learning and Development Centre, Plymouth Business School, University of Plymouth, England. Organisational learning is increasingly being mentioned in the literature as a critical element for optimising the ability of small firms to respond to changing imiarket opportunities. Various researchers have validated the relationiship that exists between organisational learning and firms exhibiting a strong market orientation. Other research has shown that organisational learning is an important antecedent for the effective management of innovation. There exists, however, limited empirical evidence in the small firms literature on the relative importance of double versus single-loop learning and the role of the learning svstemns required to support the learning process. The Inteirnet providles ail excellent research opportuinity to assess empirically the possible relation s}lips that may exist between learninig style, lecainlg systems and revisions in operational practices. A survey of small UK mantufactur-inig firnms was undclertakein to acquire data on learniing stvle and(learning systems. The resuilts suggest that. involvemien-t in Interniet technology vsill be greater among firm-ls exhibitinig a double-loop learniing style. No stncdi r-elationship was found in the case of the degree to which small firm-ls have established formalised learning systems. The implications of these findings in relation to small firms involvement in the Internet and e-commerce are discussed. Proposals are presented on the neecd for further research.
Health and Safety in Small Firms with Particular Reference to Spain
Authors: Rigby Mike , Lawlor Teresa
Published: July 2005

MIKE RIGBY IS HEAD OF DMSION OF HUMAN Resource Management, South Bank University, London, England; Teresa Lawlor is Professor of Contemporary Spanish Studies at Kingston University, England. This paper, through a review of relevant literature, first develops a best practice model for intervention in SMEs to improve health and safety performance. It then reports a research project which examined the role of intermediaries in improving SME performance in health and safety in Spain. The research found a high degree of congruence between the best practice model and the reported cases of successful intermediary intervention. The successful interventions emphasised the importance of outreach activity which stressed to SMEs the short-term economic advantage of taking action and which targeted companies with poor accident records. The successful intermediaries exhibit a high degree of sectoral specialisation and tended to be quite prescriptive in their approach. A high degree of collaboration between intermediaries including enforcement agencies, insurance companies, employers' associations and trade unions was particularly likely to result in effective interventions. In addition, successful interventions tended to have a strong regional identity. Within these general parameters a variety of different models of intervention were successful. The paper finally considers the relevance of the findings of the research to a more regulated business environment such as the UK.
Explaining Size Differences in Smaller Firms
Authors: Hamilton R. T. , Lawrence Lucy
Published: July 2005

R.T. HAMI1ITON IS FACULTY DEAN AND Professor of Management at the University of Canterbury, Christchurch, New Zealanid; Lucy Lawrence is employed in imianagemnent consultancy with Deloitte Touche Tohnmatsu in Wellington, New Zealand and was previously a graduate studeint at the University of Canterbury. The puirpose of this paper is to contribute some New Zealand evidence to the understanding of two important facets of small business research. The first of these is the explanation of the imiarked size differences that develop over time in cohorts of small firms of the same age. This was the main focus of the sttidy reported here. Second, the paper traces the imiiplication of increased size for the miianagement struicture adopted by small firrmis. Two cohorts of small firms of different ages were employed and the work derives its main findings from a multivariate analysis of employment size differences in each cohort. Size attained at a point in time some years after starttup may be used as a proxy measure foi the growth achieved by the firm. However, in making this leap from size to growth it must be borne in mind that the atithors have only cross-sectional data and cannot take into account the particular growth paths followed by individuial fir-ms, a point returned to at the enid ol the paper.
The Demand for the UK Small Company Audit an Agency Perspective
Authors: Seow Jean-Lin
Published: July 2005

JEAN LIN-SEOUW IS AN ASSISTANT PROFESSOR in the Nanyang Business School at the Nanyang Technological University, Singapore. There has been considerable debate in recent years concerning the value of the small company audit. This paper aims to explore the impact of the introduction of deregulation of the small company audit in the United Kingdom in 1994. It seeks to identify why small companies may still demand voluntary audits in the absence of a statutory requirement. Theoretical and economic factors and rationales affecting small company management choice to engage auditing are examined. Following a survey sent to small companies qualifying for audit exemption, several hypotheses underlying the demand for audits in an unregulated environment are empirically tested in a logistic regression model. Some support is found for the agency, or stewardship, hypotheses in small company choice to engage auditing.
Growth and Performance of Manufacturing SMEs: The Influence of Financial Management Characteristics
Authors: Mcmahon Richard G. P.
Published: July 2005

PROFESSOR RICHARD MCMAHON IS head of the School of Commerce at Flinders University, South Australia. This paper describes a study of financial management characteristics on business growth and performance among .small and medium-sized enterprises (SMEs) engaged in manufacturing. Nonlinear principal components analysis is used in empirically capturing key enterprise and financial management characteristics. Polytomous logistic regression modelling reveals the influence on business growth and performance of the enterprise and financial management characteristics considered. Enterprise characteristics seem to dominate in their impact upon SME achievement, with financial management characteristics, other than use of external financing being relatively unimportant. Development orientation and the existence of internal and external constraints upoIn growth appeail the most influential enterprise characteristics.
Why Franchisors Discontinue Franchising but Continue Operating
Authors: Frazer Lorelle
Published: July 2005

DR. LORELLE FRAZER IS SENIOR LECTURER and Head of the School of Marketing, Griffith University Logan Campus, Brisbane, Australia. This paper provides a preliminary analysis of the strategic managemnent decision of franchisors to discoritinue franchising arrangements in favour of an alternative method of ownership. A sample of 14 ex-franchisors and seven of their ex-franchisees was interviewed to gather data on reasons and outcomes of the decision to cease franchisinig arrangements. The data analysis indicates that in general the firms were attracted to franchising because of resource constraints. However, the decision to adopt an alternative ownership strategy appears to be based on problems associated with human capital such as difficulties in motivating anid monitoring franchisees and economic factors such as the downturn in the economy during the 1990s.
Expanding Capabilities in a Mature Manufacturing Firm: Absorptive Capacity and the TCS
Authors: Jones Oswald , Craven Martin
Published: July 2005

The term `absorptive capacity' (Cohen and Levinthal, 1990), which describes the ability to assimilate new knowledge and skills, has been widely adopted in the study of collaborative links between is used to examine the process by which participation in a Teaching Company Scheme (now know as TCS) helped develop managerial capabilities in a small manufacturing cnmopany over a two-year period. RSL is a family-owned business which has been in existence for forty years, has approximately 70 employees, and manufactures office supply equipment. It is concluded that improving absorptive capacity requires the introduction of new organisational routines which help codify tacit knowledge. Within RSL, such changes helped increase turnover by almost 25% during the two years the TCS programme was in operation.
Strategy Formulation in Small Business: The Hong Kong Experience
Authors: Chan Shui-Ying , Foster M. J.
Published: July 2005

SHUI-YING CHAN IS WTITH THE CITY LTniversitx of Hong Kong and M. J. Foster is associate dean of the Faculty of B1usiness at Kingston University, England. This paper describes the results of a stuidv examining the strategy formulation process in small businesses in Hong Kong in th-le i-iid-1990s. It is believed to be the first stuch study. A sample of some 42 businesses were examined to determine how their actual planning behavioutr comipared with that predicted fromii a suin ple, three-stage imodel of the strategy f'or-niitulationi process based on the literature in both strategy and small business. The imnpact of elenrienits of owner-managers' backgrouni-ds o01 tlhc process xras also examninled. The samiiple ol companies coveret a witle rangc of buisillesses with the bulk being in the sel-xite segmeints of variolus sorts, tlhis being i-epresentative of tlhe Hong Konig econoiny. The 'westernised Chinese' niatuire of most of Hong Kong's resideints was seen to be an iinportant contexttal factor to observed behaviour. The paper concludes with some brief suggestions for ftuttire behaviour bv such small firms.
Succession in South Asian Family Businesses in the UK
Authors: Bachkaniwala Darshan , Wright Mike , Ram Monder
Published: July 2005

DARSIIAN BACHKANIx\AIA\ ANI) Professor Mike Wriglht aie xwitl the Centre for Managemenit Buivotut Researclh, Universitv of Nottinghamii, England, and Professor Monder- Ram is with the Leicester BLusinIess School, De Montfort Universitx, En-glaind. The link between the 'famrtilxv mld Asiani enitrepreneurship has beeii it rectirrin-g feature of debates oni ethniC mino-ority butsinesses. Studies haxe pinpoilltedl the pivotal role of the familv in smiiall eniterprises and it has been arguied that the family operates collectivelv tor the 'common good' of the businiess. It has also been demonstrated, however, that the family may serve as aii ar ena of exploitation. Notwithstandii-ig these opposing interpretations, the centialitv of the family to many Asiani businesses is beyond doubt. Despite this evidence, the key issue for this papei successioni in Asian family businesses has rarely been subject to academic scrutitxn. From the research it is evidenit that succession remains a problematic and neglected issue in ethnic family businesses like many family businesses in genereal. The issues raised have potentially important implications for the future of Asian independent family businesses as it is shown that from a higher than average business formation rate among the first generation, business formation among the second generation ethnic minorities may indicate at best a reversion to the mean.
Relational Activities and Decision- Making Support: The Role of Directors' Associations
Authors: Baillette Pamela
Published: July 2005

DR PAMELA BAILLETTE IS ASSISTANT Professor at the University of Perpignan (Jerem) in France. She is also Research Associate at the CREGO 'Research Centre for Organisational Management' at the University of Montpellier in France. Decision-making is a risky activity for all companies. Owner-directors of small and medium-sized businesses are in a particularly delicate situation, however, as the risks taken can rapidly affect the survival of their company and often their personal patrimony. Moreover, their relatively limited means reduce the possibilities of using information sources that are available to the managers of large companies. The relations established with other directors within networks can constitute an appropriate response to the difficulties encountered by the managers of small and medium-sized companies in the decision-making process. Directors' clubs with a vocation of analysis into company management techniques display particularly interesting characteristics. Their missio-.:oriented approach towards the exchange of professional information, the homogeneity of their public composed of company directors, and the formalisation of the network as well as the way meetings are run, are all ways of providing assistance in the decision-making process. This paper is based on the study of three such associations located in two countries: the 'Centre for Young Directors' ('Centre des Jeunes Dirigeants') and 'Rhodanim club' ('Rhodanim') in France, and the 'Groups of Company Directors' in Canada- Quebec ('Groupement des chefs d'entreprise de Quebec'). It answers the following two questions: do the manager-s of SME perceive the association as a pertinent instrument for decision-making support? What factors favour the success of the decision-making support provided to the managers by the association? Following a theoretical analysis of the concepts involved, this paper explores the results of a deeper study conducted with 39 members to highlight a series of factors favourable to the success of decision support.
Entrepreneurial Paradoxes in Business Format Franchising: An Empirical Survey of Finnish Franchisees
Authors: Tuunanen Mika , Hyrsky Kimmo
Published: July 2005

MiiK- TUUJNANEN IS ASSOCIATE PROFESSOR at the University ofJyvaskyla, School of Business and Economics, Finland. Kimmiiiio Hyrsky is researcher at the Ministry of Trade and Industry in Finland. The study explores Finnish franchisees' entrepreneurial chai-acteristics and the advantages and disadvantages they encounter in operating their businesses. It adds to our existing knowledge about factors affecting success and failure in developing and sustaining amicable and rmiutually beneficial franchisee-franchisor r elationships. This is particularly relevant since recent evidence suggests that franichise survival rates and profitability are not so favourable as previously thought when compared to independent small businesses. The results displayed ttie paradoxical nature of franchisor-franchisee relationships. It was found that support given by the franchisor might gradually lose some or most of its value if it is not consistently renewed and updated. Thus, for instance, franchise fees often started to become, first a source of dissatisfaction, and later even a potential source of conflict. Moreover, the results indicated that although defining a franchisor as anl enti eprenietu- is geiierallv ac ceptecl, enltrepreneurial activities by franichisees could be viewed as a paradox. I'he motivational drives of fi-anchisees seemet to chan-ge as they become iioi- e experienced. The mioi-e experieiiced o enitrepreneuirial the franchisee was the imiore likely he or she was to becone frustrated with the frarichisor's goals.
The Role of Government in SME Development in Transition Economies
Authors: Smallbone David , Welter Friederike
Published: July 2005

DAVID SMALLBONE IS PROFESSOR OF SMALL and Medium Enterprises and Head of the Centre for Enterprise and Economic Development Research at Middlesex University Business School. Friederike Welter is Senior Researcher, 'Crafts and SMEs' Research Group, Rhine- Westphalian Institute for Economic Research (RWI), Essen, Germany. The paper is concerned with the role of government in relation to SME development in economies at different stages of market reform. It demonstrates that, as in mature market economies, the state is a major factor influencing the nature and pace of SME development, although more through its influence on the external environment in which business activity can develop than through direct support measures or interventions. Survey evidence from the Ukraine, Belarus and Moldova suggests that many enterprises are set up, survive and sometimes even grow despite government, because of the creativity of individuals in mobilising resources and their flexibility in adapting to hostile external environments. The problem is that in these situations the number of firms remains small and their contribution to economic development rather limited. In such a context, government still has to create the framework conditions for private sector development to become embedded and sustaining. At the same time, in countries where market reforms are at a more advanced stage (such as Poland), current priorities for government with respect to the environment for SME development include bringing legislation and regulations in line with EU standards in preparation for EU accession, encouraging the banking system to adapt and recognise the SME sector as a potential market for a range of financial products, facilitating the development of venture capital funds for that minority of SMEs that seek external equity, and working in partnership with the private sector to establish an effective support infrastructure. Although there may be a case for selective interventions in both types of circumstances, direct support measures are not the main role for government in either case.
Working for Each Other: Gender, the Household and Micro-business Survival and Growth
Authors: Baines Susan , Wheelock Jane
Published: July 2005

JANE WHEELOCK IS READER IN SOCIAL Policy and Susan Baines is an ESRC Management Research Fellow, both at the University of Newcastle upon Tyne, England. The purpose of this paper is to contribute to better understanding of the concerns, needs and achievements of the 'business family', which may include a very wide variety of formal and informal relationships between family and business. Some of the results of a study of 200 micro-businesses, defined as businesses with up to nine employees, in the business services in the north-east and the south-east of England are reported here. Although the northern and southern location had very different socio-economic characteristics, patterns of family support for businesses were extremely similar. In both locations, there was extensive family involvement, in particular the involvement of spouses. Family labour could be a vital resource without which a struggling business would fail to survive but the extent of self-exploitation and the sacrifices made by some individuals should not be glossed over. Employment growth was a goal for only one in four of the businesses interviewed. Case study material confirmed survey findings that growth seeking business owners were the most likely to seek out partnerships with non-family members and to participate actively in non-family networks.
Critical Success Factors for Small Business: An Inter-industry Comparison
Authors: Gadenne David
Published: July 2005

DR. DAVID GADENNE IS A SENIOR LECTURER in Accounting and Foundation Studies at Sunshine Coast University, Queensland, Australia. The main purposes of this paper are to determine whether there were any common (or different) management practices across different industries that contribute to the successful financial performance of small businesses; to determine whether any antecedent factors, in the form of owners' personal characteristics and enterprise objectives, significantly influence successful management practices for small business; and to document the practical implications of the current research for small business practice. While much previous research focused on the underlying 'causes' or reasons for the success of small business enterprises, very little research has been undertaken in relation to the different factors that are used to measure success across different industries. Moreover, the lack of a comprehensive theoretical framework between various factors and small business success has limited the usefulness of previous research. Accordingly, this study contributes to the existing literature by using a causal model framework involving the relationship between management practices and small firm performance for three different industry types, while considering the antecedent factors of small business owners' personal characteristics and small business enterprise objectives on management practices. The results show that there are different management practices associated with small firm success between industry groups and significant effects of enterprise objectives on management practices for only one type of industry.
Small Firms and the ISO 9000 Approach to Quality Management
Authors: Chittenden Francis , Poutziouris Panikkos , Mukhtar Syeda-Masooda
Published: July 2005

DR. FRANCIS CHITTENDEN IS SENIOR FELLOW in business development, Dr. Pannikos Poutziouris and Dr. Syeda-Masooda Mukhtar are fellows in SME management, all at Manchester Business School, England. This paper reports the findings of a large survey about the international quality standard ISO 9000. The paper compares the characteristics of small businesses that use ISO 9000 with firms that do not and explores the reasons why businesses decide to seek registration under the standard. The benefits and disadvantages experienced by the small firms that have registered are also considered. A number of policy recommendations are presented that argue that ISO 9000 should be adapted so that more small firms can enjoy the advantages of registration. ISO 9000 is a quality management system that relies on the formal documentation of operating procedures. However, most small businesses are managed informally through the personal attention of the owner(s) and they perceive ISO 9000 to be expensive to operate and too bureaucratic for their needs. Informally-managed small businesses that adopted ISO 9000 reported increased costs as a result of implementing the standard. The formality required by ISO 9000 prevents many small firms from enjoying the benefits of registration even though, in most cases, the quality of their products and services is satisfactory.
Managing Autonomy: Employment Relations in Small Professional Service Firms
Authors: Ram Monder
Published: July 2005

D R. MONDER RAM IS PROFESSOR OF Small Business and Director of' the Enterprise Research Centre at the University of Central England Buisiness School, United Kingdom. An inicreasingly noted feature of the small business population is the rise of the small professional service firm, yet comparatively little is known of the niature of employment relations in such enterprises. This paper aims to explore the maniner in which work is regulated in such settings by examining the internal management processes of three firms engaged in the provision of business and 'professional' services. The study, which is based on an ethnographic investigation over a year-long period, examines three particular processes that are deemed to be distinctive in this sector: recruitment, performance and supervision. Much of the rhetoric associated with social relations in such firms, for example collegialitv, person-centredness, trust, was evident in the study. BuLt it was clear that emiployee autonomiv still had to bc imanaged' and this process xwas a contingent and fluid one that often- contained a harsher edge thaIn existing accouints suggest.
Small Business Failure Rates: Choice of Definition and Industry Effects
Authors: Watson John , Everett Jim
Published: July 2005

DR. JOHN WTXSON IS A SENIOR Lecturer IN the Department of Accounting and Finance and Dr. Jim Everett an Associate Professor in the Department of rinformation Management and Marketing, both at the University of W'esterin Australia, Australia. Results froin pre v ious studies examining the incidence of smiall business failure have reported significant variations in failure rates betxveen industry sectors. Indeed, the results from some studies are in direct coniflict. For example, Lowe, McKenna and Tibbits (1991) reported that the manufacturing sector had the highest failure rate while Bruderi, Preisendorfer H/ (d! (1992) and Phillips and Kirchoff (1989) fotund that the manufactuiring sector had the highest survival rate. Th-e significarnt variations in reported failul-e rates and the apparent conflict between th-ie findings of some studies must surelv be a souti-ce of some confusion for policx- tiiakers and others with an interest in the smiall businiess sector. The results of this sttldx su-ggest that reported failure rates iiiay (lepend heavily on the definition of tfailtui-e adopted. A better understanding of the effect that choice of failuire definiitioni may have on reported failur e rates sh(ould lead to improved policy de isions bv governments, financial instituitions an1d othtie grotips xsNitll mt11 interest in smIiall l)usilICss.
United Kingdom High-Technology Small Firms in Theory and Practice: A Review of Recent Trends
Authors: Oakey R. R , Mukhtar Syeda-Masooda
Published: July 2005

PROFESSOR R. P. OAKEY IS PROFESSOR OF Business Development and Dr. Syeda Masooda Mukhtar a fellow in SME Management, both at Manchester Business School, England. Until 1996, the 1990s had been characterised by reduced United Kingdom policy concern for the fortunes of high technology small firms (HTSFs), certainly when compared with the 1980s. However, the end of 1996 and early 1997 witnessed a sudden resurrection of intense interest in HTSF policy. With this welcome re-birth of concern for high technology SMEs, it appeared opportune to conduct a review of policy towards HTSFs, both in the light of accumulating academic evidence, and in view of the recent contributions to policy prescription from the Confederation of British Industry (CBI), the Bank of England, and a Select Committee of the House of Lords. A review of past and current policy thinking is conducted, with particular attention to the most recent assertions of the CBI and the Bank of England on HTSF formation and growth problems. The paper then moves on to discuss the impact of academic research results on the formation of government policy in the past, with speculation regarding the future role of such work. Finally, by building upon the preceding review of past and current policy, a number of future policy options are proposed in the conclusions to the paper.
The Small Business of Developing People
Authors: Kerr Annette , Mcdougall Marilyn
Published: July 2005

ANNETTEI F KERR IS A PROJECT MANA(GER FOR the Glasgow Development Agency, a local eniterprise company in Scotland, and Marilyn McDougall is Director of the Fortum for Inniovation and Enterprise anid Principal Lecturer in Hluman Resoturces Management at Glasgow Caledonian Urnivesity, Scotland. This paper highlights the view that human resource development (HRD) involves a numbei of characteristics which arguably shotuld be of interest to SMEs. Yet HRD in SMFs is tinder-recognised in the literature to date and little practised by companies. Fhe paper recognises that managenment issues in this sector aic often diffei-ent fh-orn l thiose in larger companies. It contbihutes to the HRD debate in the atrena of SMEs through explorinlg ownei- miianageis' views oIn the motivation-s and(coniditions wshich prevail when HRD exists in small companies. New resear ch- is pi-esented which involves a research design incorporating both breadth and depth. B3readth is achieved by includinig seven companiies in different sectoi s which practice an HRD approach. Withiii tlhese, senmi-str uctured interviews were conc-luctecd with owner-managers, iivestigating their views on: their miiotivatioin for adopting the ideas ot HRI): links between HRD and bmisillesS stI ategy; hlenefitts ox IHRD cv( aai1tiil isstues; anld bharrieis tmo It al i iit A II(t tmainin-g in ST\IFs, ot 1s1o'i ti pie-senltecl oni tt immliplicanimms tin p(o)ti(-\- makers and goveirmnment agcel S Wx lcii nay wish to peisuiadle (compall)liciS tIo d(101 this type of appiroac h .and fi( indivilutiia Companies wsher ufhc adoptioin o IIRD) niav be) a niilattei It lrthec F Ci O t-it im 1 O
Debt Financing and Factors Internal to the Business
Authors: Kotey Bernice
Published: July 2005

DR. BERNICE KOTEY IS A LECTURER IN Accounting and Small Business at the Sunshine Coast Universitv College, Queensland, Australia. The capital strtucture of small businesses indicates an over-reliance on personal eqtuity anid short-term debts as major souirces of finance. Inadequate equity and long-term debt in the capital struicture is a primary cause of under-capitalisation in small btusinesses. This finance gap is frequently attributed to supply side fiactors stuch as inaccessibility to the stock imarkets and unwillingness of financial institutions to lend to small businesses. Howevet, failure to use long-term funds, particularly debt, could also be associated with demand side factors. Relationships between demand side factors such as personal values and financial planning propensities of owner-managers, and use of debt finance are examined empirically in this study. The findings indicate an association between financial leverage lex els of firms and personal values of theirowiner-managers. The study also demonstrates that owner-managers who uise (lebt and engage in finan-cial planning achieve higlhei pertot I-nManC(e levels thanthose wvlho do -iot engage iti such activities. Owner-managei-s 5rl-> h) avoid uise of debt finance Wel-e ftomidt1(1 rate loW on trust of others.
Types and Sources of Export Information: Insights from Small Business
Authors: Leonidou Leonidas C. , Adams-Florou Athena S.
Published: July 2005

DR. LEONIDAS C. LEONIDOU IS ASSOCIATE professor of marketing at the University of Cyprus and Athena S. Adams-Florou is a doctoral candidate in management at the University of Bath, England. This paper reports the findings of an empirical study on the information behaviour of 80 exporters based in Cyprus. With regard to types of information needs, the study revealed that information on foreign customers was the most influential overall, followed by product aspects, market preference, and pricing issues. Exporters were also found to rely more on personal rather than impersonal sources in gathering information about foreign markets. In examining the relationship between types and sources of export information, it was shown that specific types of information are strongly correlated with certain sources. Moreover, the number of sources from which information was obtained differed in accordance with the specific information type. Finally, some of the associations between these two dimensions were somewhat paradoxical, while others were attributed to the specific role performed by developing country-based exporters in overseas markets.
Tackling Youth Unemployment through Entrepreneurship
Authors: Owualah Sunday L
Published: July 2005

DR. SUNDAY I. OWUALAH IS A SENIOR lecturer in the Department of Finance, University of Lagos, Nigeria. This paper presents evidence that promoting entrepreneurship consciously among youths can be an effective way of tackling unemployment within this group. This conclusion is drawn from the analysis of survey data collected from a stratified sample of loan beneficiaries of the Smallscale Industries and Graduate Employment Programme in Nigeria. This programme is one of four programmes of the National Directorate of Employment (NDE) set up in Nigeria in 1987 to encourage and assist unemployed youths to establish and operate their own smallscale firms. The analysis shows that an average of four newjobs were created by each of the respondent firms in the first four years of the programme. It further reveals that the firms achieved an appreciable growth in their assets, while previous training, experience and personal inclinations of their owners largely influenced the choice of types of small-scale firms that were established.
The Pricing Decision in the Micro-Business: A Study of Accountants, Builders and Printers
Authors: Greenbank Paul
Published: July 2005

PAUL GREENBANK IS A SENIOR LECTURER IN the Centre for Business and Management Studies at Edge Hill University College, Lancashire, England. This paper is based on research involving 55 semi-structured interviews with owner-managers of microbusinesses. The purpose of the study was to determine what factors ownermanagers take into account when they are making their pricing decisions. Previous research suggests that both small and large-scale organisations predominantly adopt a cost-plus approach to pricing, making reference to the 'market' when deciding on the level of mark-up. As such, most of the research has focused on economic determinants of pricing. This study, however, found that non-economic factors played an important role in the way ownermanagers made their pricing decisions. Indeed, the way individuals make decisions relates to a complex interrelated combination of factors. This paper develops a theory of pricing that takes into account the individual, social and economic context of pricing in the micro-business.
The Valuation and Cost of Credit Insurance Schemes for SMEs: The Role of the Loan Guarantee Associations
Authors: Camino David , Cardone Clara
Published: July 2005

David Camino And Clara Cardone are both associate professors of Accounting and financeat the Department of Business economics at Universidad Carlos III de Madrid, Spain, Small and Medium enterprise (SEMs) have important limitations from the finanicial viewpoint. Their reduced capability to generate resources (Self financing) and their high finanical cost as compared with the profitability of investment, makes them highly dependent on short-term highly dependednt on short-term bank finanicing, among the different mechanisms used to solve these financial problems are credit guarantee schems such as Loan Guarantee Association (LGA). These (mutual or government granted) credit insurance system were set up to ease the acces of SMEs to the credit market by convering part of the loss incureed when borrowers deefaulted on lons. In spite of some legal differencde, LGAs in most European Union countries function in fairly similary ways, thereofre making it esier to compare their operationsl cost and impact on business. This study provides a model for the valuation of cost and implicit benefits associated with loan guarantee programmes. Empirical results indicate that the use of LGAs is likely to differ among SMEs depending on company size and ebt fincial cost. The relativel high cost of the loan guarantee is not always fully compensated with a similar reduction in the interest rates of the financing hindering the full development of the schemes.
Towards a Model of Franchise System Development
Authors: Floyd Callum , Fenwick Graham
Published: July 2005

Callum Floyd is a completed a PHd. that explorer the orgnisations and managment of franchies system from different business sectors. Dr Graham fenwick is a resercher working on diverse projects. bothe are bsed in the department of mangament, univeristy of canterbury,new zelaland. this paper examines the developmento f different franchiese system by identifying the chaallenge and problem faced by franchisors a their system emerge from a business iea to a national chain of outlets commanding a major share of the domestic market. a four stage model of franchies system development offers a valid generalsed model, although some varialtions in activites, their sequence and degreee of system development do occur. the finding indicate that more extensive pre-franchising preprations and planning facilitates early growth. Transition from one stage to teh next is impaired when franchisors give insufficient attention to some issue to the extent that the development of their system is arrested before full marketing potential is achieved. this truncation of dvelopment appears to be related to founders's self images and abilities to change their behaviour by removing themself from operation to foucs more on managing and directing. thus thestudy holds important implications for acedemics, prctioners and franchisors.
Overcoming Customer Dependency
Authors: Hewitt-Dundas Nola , Roper Stephen
Published: July 2005

Dr. Nola Hewitt-Dundas and stephens roper are with the NOrthern ireland Economica Research Center, Belfast, Northern Ireland. Dependency on a small number of customer puts intense pressure on suppliers' profit margin and, in slow growing markets, limits their ability to grow. using stragtegic benchmarking information, a group of Northern Ireland consumer food producer are shown, depsite slow market growth and higher than averge customer dependency, to have increased market share while maintaining aboe vergate proitability. examination of the business strategic and develoment activites of the consumer food firms,and comparble information for other small food prodcuers in Ireland, suggests and emphasiss on cost-reduction and new prodcut development. A comparision of the productivity and prodcut range of the consuer food firms provides evidence of the success of these strategic. This suggests that even a relatively weak market situations, charactrised by dependency on a small number of customers, can be over come by effective and appropriate business strategy.
Entrepreneurial Metaphors and Concepts: An Exploratory Study
Authors: Hyrsky Kimmo
Published: July 2005

IN THE PAST RESEARCH THERE HAS BEEN continued controversy over the definition of entrepreneurship and the identification of entrepreneur. By combining the ideas of entrepreneurship and linguistics, this paper takes a new approach to examining the definitions. An exploratory analysis of entrepreneurial metaphors and concepts is conducted to achieve this goal. In a quantitative analysis of entrepreneurial concepts respondents defined the terms 'entrepreneur' and 'entrepreneurship' with suggested conceptual equivalents. In an analysis of metaphor, informants formed metaphoricalexpressions of entrepreneurship. The sample consisted of 751 respondents from Finland, Sweden, Norway, Ireland, Canada and Australia. Entrepreneurs perceived the concepts more positively than other respondents. The same applied to differences between females and males respectively. In a cross-cultural comparison, the Scandinavians held more favourable views than their English-speaking counterparts. This might reflect the current, very positive socio-economic climate in Northern Europe towards entrepreneurial activities. As to the entrepreneurial metaphors, they were grouped into following semantic categories: 'Machine (ry) and other PhysicalObjects', 'Warfare and Adventure', 'Sports andGames', 'Creativity and Activity', 'Nature', 'Disease', Food Items', and 'Special Features'. The metaphorical statements revealed the paradoxical nature of respondents' perceptions of entrepreneurs and their ventures. A majority of the metaphors contained very positive, even idealistic images. Especially in the Finnish sample they seemed to conjure up glorifying images of entrepreneurs as some kind of modern day heroes whose independent and industrious actions are of priceless value to society. At the same time, there were numerous metaphors with negative, cynical or downgrading undertones. The critical observations often highlighted egotistic qualities associated with entrepreneurs.