Showing papers in "International Journal of Entrepreneurial Behaviour & Research in 1995"

The characteristics and strategies of high growth SMEs

Abstract: Based on an empirical investigation of the development of a group of manufacturing SMEs comparing the characteristics and strategies of firms achieving high growth between 1979‐90 with the weaker performing companies. Shows that high growth can be achieved by firms with a variety of size, sector and age characteristics; such firms are distinguished more by the strategies and actions of managers than by their profile characteristics. The clearest differences between fast growth firms and other firms are with respect to their approach to product and market development. While high growth firms were above average investors they were not production‐led; instead they were characterized by an ability to make changes in production to complement an active market development strategy. To grow successfully over ten years, firms also needed to develop their internal organizational structure in ways that enabled the leader of the firm to delegate responsibility for operational tasks to become more focused on strategic...

A typology of technology‐based entrepreneurs

Abstract: Despite increasing evidence of the use of typologies in entrepreneurship research, comparatively little work has attempted to distinguish between different types of technical entrepreneur. Aims to develop such a typology. Examines previous research into the organizational backgrounds from which technical entrepreneurs have emerged to form new ventures. Follows this with an analysis of detailed qualitative interviews administered to a sample of technical entrepreneurs in the United Kingdom, which leads to the formulation of a typology of technical entrepreneurs based on their previous occupations and, in particular, on the role played by the technical entrepreneurs in the development of technology with past employers.

Exporting and non‐exporting small firms in Great Britain

Abstract: Makes a contribution to the debate surrounding the characteristics of “non‐exporting” (n = 203 firms) and “exporting” (n = 64 firms) new manufacturing and “producer services” small firms in Great Britain. It was appreciated that sample differences may overwhelm the exploratory analysis. Consequently, in order to overcome this potentially distorting influence a “matched pairs” methodology was also utilized. Forty‐two matched pairs of non‐exporting and exporting firms were identified (by age of the business, industry and location type). In total, data were collected on 146 variables covering the firm, the founder and the environment. Dichotomizing between the two types of firms the univariate analysis of the “matched samples” identified statistically significant differences with regard to only 14 variables (10 per cent). Additional multivariate analysis was conducted. Results from a logit regression model of the “matched samples” suggests new firms are “pushed” into “exporting” their sales abroad due to per...

Ethnic entrepreneurship in comparative perspective

Abstract: The growing participation of ethnic minorities in self‐employment has been a conspicuous feature of the small business scene in many European countries. Reports on a comparative examination of entrepreneurship among ten Maghrebian businesses in Lyon, France and ten mainly Pakistani businesses in Birmingham, England. Considers the motivating factors for entrepreneurship, the financing of the firms and their markets. The division of labour by gender in each firm was also considered as well as the wider institutional and political contexts in which they operate in the two countries. Of overriding significance are the similarities between the firms in terms of motivation, markets and the importance of family labour, despite differences between national policies towards “ethnic minorities”.

The basic social processes of entrepreneurial innovation

Abstract: Proposes that the understanding of innovation, as so far revealed by academics, has only given a limited insight into what really happens when people innovate. Previous studies have researched innovation using perspectives and methodologies which were unable to reveal what people actually do when they are innovating. This is because these other studies have chosen a level of analysis which is too far removed from the activities carried out by innovators. To examine innovators more closely a “grounded theory” approach has been used. By using a combination of participant observation, individual and focus group interviews, over an extended period of time, the detail of the innovator′s behaviour has been revealed. These insights are known as basic social processes which reflect the ideologies, beliefs, and values which drive innovators. The three basic social processes revealed by this research are, ambiguity, transformation and reflexivity. Although the context of these research findings is situated in a Swe...

Decision making by Scottish bank managers

Abstract: Commercial banks are the major source of external finance for small firms in the UK. Describes a study which was carried out to investigate how bank managers make decisions on lending to small firms. The study looked at adverse selection (i.e. where a manager turns down a good proposal which turns out to be a success) and its effect on small firm liquidity constraints. The researcher took on the role of an entrepreneur and presented a business plan based on an actual lending proposition to bank managers in Scotland. Compares the study with an English study. Findings suggest a more favourable treatment of the proposition by the Scottish bank managers. However, there was variation among banks in the way managers assessed the proposition. There was an emphasis on financial information, gearing and security which reflects the capital‐based approach to bank risk assessment in the UK. Considers policy implications for risk assessment and small firms/banking relationships.

Corporate venture capital: the financing of technology businesses

Abstract: The availability of external equity finance is a key factor in the development of technology‐based firms (TBFs). However, although a wide variety of sources are potentially available, many firms encounter difficulties in securing funding. The venture capital community, particularly in the UK, has done little to finance early stage TBFs and has failed to cater adequately for the specific value‐added requirements of these firms. Non‐financial companies have the potential to become an important alternative source of equity finance for TBFs through the process of corporate venture capital (CVC) investment. Based on a telephone survey of 48 UK TBFs that have raised CVC, examines the role of CVC in the context of TBF equity financing. Shows that CVC finance has represented a significant proportion of the total external equity raised by the survey firms and has been particularly important during the early stages of firm development. In addition, CVC often provides investee firms with value‐added benefits, primar...

Small firms, industrial districts and power asymmetries

Abstract: Considers the renewed interest in industrial districts as a post‐Fordist form of spatial distribution of industry. Local agglomerations of industry in the form of small and medium‐sized firms have been proposed as a means of dealing effectively with changing patterns of demand; furthermore, they are seen as offering opportunities to workers of more satisfying employment. Contends that the positive aspects of industrial districts are often exaggerated and that the increased importance of small firms generally has, in many cases, been the outcome of regressive economic restructuring at the global level. Takes evidence from survey work in the East Midlands, and shows that small firms often occupy a weak position in the production chain and, as a consequence, are subject to asymmetrical power relationships. Makes policy recommendations which are designed to deal both with the problems faced by small firms in particular and by labour more generally.

Managing organizations to address the finance gap

Abstract: Reviews and analyses the long standing concern over the availability of finance for young and potentially growing business. The perception of a “finance gap” has led to the creation of financial institutions to address it, few of which now survive. Examines the management practices of some in the UK and the USA, which have not only survived, but also appear to be both filling “the gap” and investing successfully. Identifies a number of resources other than finance which these organizations have found it necessary to supply in order to generate success among their investee businesses, and a number of common investment management practices. Finds the issue of the finance gap to be inseparable from issues of other resource deficiencies within young firms. Suggests that policy makers might valuably heed the experience of organizations which have learned, often painfully, how the finance gap might, and might not, be filled.