- This + 400k other summaries
- A unique study and practice tool
- Never study anything twice again
- Get the grades you hope for
- 100% sure, 100% understanding

A snapshot of the summary - Enterprise and small business : Principles, practice and policy.
-
1 Defining and measuring the small business
This is a preview. There are 3 more flashcards available for chapter 1
Show more cards here -
Labour Force Surveys
- Used to estimate number of self employed individuals and uncorporated businesses.
- Data is coming from a survey.
-
'N shaped business ownership' puzzle of the US. Two explanations:
- Static explanation: there is an equilibrium rate between economic development and business ownership.
- Dynamic explanation: rate of entry & exit. The enterprise churn.
-
Explanations for changes in business ownership
- Cost disadvantages: BO went down. Because before 80s, era of mass production, this means the minimum efficient scale (ME) was important. This promoted concentration of ownership and drove SE away.
- Technological changes: in 80s more PC, so BO went up. Lead to less economies of scale, smaller MES, more flexibility and new industries.
- Innovation: SE have advantages, less bureaucratic and more flexible.
- LE fragmentation: LE transfers risk by franchising. Leads to rise of BO.
- Development of service sector: more tailor made goals, rise of BO.
- Changes in Labour Market: unemployment pushed to selfemployment. BO rises.
-
Bolton's Quantitative approach of SE
- There is no single measure (asset, turnover) likely to fully account for size of an enterprise.
- So there's a variety of measures.
-
Storey criticised Boltons qualitative approach- LE may run in highly personalized manner- Independent is relative concept (SE may be legally independent, but still rely on LE)- SE may perform in niche, and therefor have large market share
-
Problems with Bolton's quantitative definition
- Quantitative criteria are arbitrary and country/industry specific
- measures are eroded over time (inflation)
- no uniform definition
- How to measure informal/illegal/homeworking/network marketing?
-
Bolton's qualitative approach of smaller enterprise
- Independent (not part of LE)
- managed in a personalized matter
- relatively small share of market
- greater uncertainty
-
2 Government and Small Business
This is a preview. There are 11 more flashcards available for chapter 2
Show more cards here -
Implications for government action
- SE wants to maintain and develop product markets themselves.
- SE wants government to maintain strong economic environment.
- No demand for government to do things for specific firms.
-
Government action is good for 3 reasons
- Market failure: SE have lack of control and suffer specific barriers or unequal treatment, government should help this remove. (Training example)
- Create Jobs: SE can encourage economic growth.
- Develop a vision: strategic vision for the whole economy. Government should try to boost this.
-
LE dominance has long been encouraged by government
- Planning of supply during wars led to consolidations.
- Until 60s government encouraged price cartels.
- Growth of socialism led to nationalism & big subsiding.
- Higher grades + faster learning
- Don't study anything twice
- 100% sure, 100% understanding
The following topics are covered in this summary
-
government, policy, action
-
innovation, innovative, adv
-
org, change, owner
-
business, discovery, corporate
-
entrepreneur, characteristics, behaviour
-
family, business, constructed
-
social, mission, dimensions
-
stimulated, intrapreneurs, intrapreneur
-
leadership, theory, training
-
competence, technological, entrepreneur
-
marketing, dependency, innovation
-
investment, business, process
-
relations, employment, management
-
formal, org, strategy
-
franchising, franchisor, local
-
foreign, market, categories