Showing papers in "Small Business Economics in 2001"
TL;DR: In this article, a systematic and conceptually sound study of entrepreneurial alertness and opportunity identification is outlined, and a research agenda for the systematic and theoretically sound study is outlined for this area.
Abstract: Opportunity identification represents a unique entrepreneurial behavior yet its processes and dynamics remain mysterious. Entrepreneurial alertness, a distinctive set of perceptual and information-processing skills, has been advanced as the cognitive engine driving the opportunity identification process. To date, empirical support has been equivocal; however, these early studies suffer from fundamental mistakes in theory and method. These mistakes are examined and addressed. A research agenda for the systematic and conceptually sound study of entrepreneurial alertness and opportunity identification is outlined.
1,265 citations
TL;DR: In this article, the distinctiveness of entrepreneurship and small business development in countries that are at different stages of transformation to market-based economies is discussed, following a discussion of the potential relevance of selected conceptualisations of entrepreneurship to transition conditions, the authors present original empirical data referring to the characteristics of entrepreneurs and their businesses.
Abstract: This paper is concerned with the distinctiveness of entrepreneurship and small business development in countries that are at different stages of transformation to market based economies. Following a discussion of the potential relevance of selected conceptualisations of entrepreneurship to transition conditions, the authors present original empirical data referring to the characteristics of entrepreneurs and their businesses from countries at different stages of market reform. Distinctive features of entrepreneurial behaviour identified reflect the unstable and hostile nature of the external environment and the scarcity of key resources, particularly capital. In an unstable and weakly structured environment, informal networks often play a key role in helping entrepreneurs to mobilise resources, win orders and cope with the constraints imposed by highly bureaucratic structures and often unfriendly officials. Moreover, the social context inherited from the former socialist period appears to affect both the attitudes and behaviour of entrepreneurs and the attitudes of society at large towards entrepreneurship.
694 citations
TL;DR: The authors found that female entrepreneurs have a smaller amount of start-up capital, but that they do not differ significantly with respect to the type of capital they had access to, and that the proportion of equity and debt capital in the businesses of female entrepreneurs is the same as in those of their male counterparts.
Abstract: Female and male entrepreneurs differ in the way they finance their businesses. This difference can be attributed to the type of business and the type of management and experience of the entrepreneur (indirect effect). Female start-ups may also experience specific barriers when trying to acquire start-up capital. These may be based upon discriminatory effects (direct effect). Whether gender has an impact on size and composition of start-up capital and in what way, is the subject of the present paper. The indirect effect is represented by the way women differ from men in terms of type of business and management and experience. The direct effect cannot be attributed to these differences and is called the gender effect. We use of a panel of 2000 Dutch starting entrepreneurs, of whom approximately 500 are female to test for these direct and indirect effects. The panel refers to the year 1994. We find that female entrepreneurs have a smaller amount of start-up capital, but that they do not differ significantly with respect to the type of capital. On average the proportion of equity and debt capital (bank loans) in the businesses of female entrepreneurs is the same as in those of their male counterparts.
640 citations
TL;DR: In this article, an alternative approach is suggested that is applied using data from a large comprehensive recent survey of German manufacturing establishments, and the relation between firm size and exports is examined in four selected industries to test whether the importance of economies of scale and transaction cost efficiencies vary considerably between industries.
Abstract: The positive relationship between firm size and direct exports is often considered as a stylized fact. Numerous econometric investigations back theoretical considerations by showing that a ceteris paribus positive relationship between firm size and direct export activities exists. This note contributes to the literature by closely looking at an econometric modelling issues that has largely been neglected hitherto. Various approaches used in the literature to model the exports/sales ratio, which is a percentage variable with usually many observations at the lower limit, are discussed. It is argued that all these methods are seriously flawed, and an alternative approach is suggested that is applied using data from a large comprehensive recent survey of German manufacturing establishments. Furthermore, the relation between firm size and exports is examined in four selected industries to test whether the importance of economies of scale and transaction cost efficiencies vary considerably between industries.
337 citations
TL;DR: In this paper, the relationship between the size, age and growth rate of firms in Sweden was examined for a large sample of micro and small firms in a geograph of Sweden.
Abstract: The relationship between the size, age and growth rate of firms is examined for a large sample of micro and small firms in Sweden. These firms have between 1-100 employees and operate in a geograph ...
320 citations
TL;DR: In this paper, the authors introduce the concept of social interaction, which was originally developed for innovation teams in the field of entrepreneurship research and theory, and use it to explain the success of new ventures.
Abstract: An important issue to explain the success of new ventures is mostly ignored by the research of entrepreneurship: the social interaction within entrepreneurial teams. The purpose of this paper is to introduce the concept of social interaction, which was originally developed for innovation teams in the field of entrepreneurship research and theory. The theoretical discussion proves if an adoption of the social interaction to the field of entrepreneurship is theoretically possible. Using the data of 159 German entrepreneurial teams, the effects of social interaction on new business success are empirically proven. The introduced measurement model, which consists of six dimensions, shows a high quality in the empirical test. The quality of the social interaction within entrepreneurial teams is crucial for the new venture success. An empirical comparison with the frequently used team conflicts confirm that the measurement of conflicts is not a sufficient substitute measurement for social interaction. Overall, the social interaction in entrepreneurial teams could be seen as an important but not only factor of business success.
311 citations
TL;DR: In this article, the authors focus on identifying differences in the personal and demographic characteristics of women and men in four potential labour market states, namely; unemployment; waged employment; single self-employment, and; job creating self employment.
Abstract: The ability of the self-employed to create additional job opportunities is a fundamental concern given the huge increases in public resources targeted at new venture creation in the U.K. and other countries since 1979. This study initially concentrates on identifying differences in the personal and demographic characteristics of women and men in four potential labour market states, namely; unemployment; waged employment; single self-employment, and; job creating self-employment. It then goes on to consider labour market transitions over a four year period between 1991 and 1995. The key findings are firstly that women entrepreneurs are better educated than their male counterparts and secondly that flows into self-employment were considerably higher for men than women. Furthermore, proportionately, three times as many male self-employed in 1991 had gone on to become job creating self-employed by 1995.
284 citations
TL;DR: In this paper, the authors examined the relationship between organization contextual variables and human resource management (HRM) practices in small Dutch firms and found a weak relationship between a more growth-oriented strategy and greater formality of these two HRM practices.
Abstract: This paper examines the relationship between organization contextual variables and human resource management (HRM) practices in small firms The proposed model is based on an integration of theoretical perspectives, including the resource-based approach, institutional theory, transaction cost economics (TCE), and concepts from strategic management The model is explored empirically, with qualitative and quantitative analyses of data collected from a sample of sixteen small Dutch firms Specific contextual variables examined include company size, the presence of a collective labor agreement, having a large firm associate, either as supplier, purchasing group or franchiser, and the company's strategic orientation toward growth (growth strategy) An important finding is the significance of having a large firm associate Companies with a large firm associate are more likely to report having employer-based training programs As predicted, company size is associated with more formal HRM practices, including greater regularity of performance appraisal and greater likelihood of employer-based training A weak relationship is found between a more growth-oriented strategy and greater formality of these two HRM practices Predictions based on collective labor agreements are not supported The paper concludes that the findings warrant further research on the relationship between organization contextual variables and the formalization of HRM practices, although a clearer definition of the latter variable is needed in future research
236 citations
TL;DR: In this paper, the authors investigated the effect of network activity on SME performance and found that a substantial number of SMEs are actively networking and that the level of networking has been maintained over a five-year period.
Abstract: An underlying assumption in SME literature, as well as among policymakers, is that networks are good per se especially for SMEs. Through accessing and utilising external resources in the network, the SME can overcome some of the assumed disadvantages of limited size. Thus networking is assumed to enhance small firm performance and thereby small firm growth. This article investigates this assumption. Analysis of panel data ascertains that a substantial number of SMEs are actively networking and that the level of networking has been maintained over a five-year period. In spite of this there is no evidence of associated short-term benefits such as growth in employment or growth in total sales resulting from the networking activities. The analyses suggest, however, that networking is associated with high growth in the geographic extension of markets, which suggests that networking sustains long-term objectives of the firms.
219 citations
TL;DR: To generate a successful regional cluster, the existence of world class scientific talent is a necessary condition, but it is not a sufficient condition and the ancillary or complementary factors must also be available to translate this knowledge into a commercialized product.
Abstract: The biotechnology industry poses a particular challenge to analysis because its origins were poorly understood or even noticed at the time. The purpose of this paper is to examine and make sense of recent developments in the U.S. biotechnology industry. The pioneers and subsequent followers in biotechnology came from other fields. They altered their career trajectories in sciences like genetics and medical research to enter an unknown and undefined field, which only subsequently became labeled as biotechnology. Those regions exhibiting the greatest success in developing biotechnology clusters also possessed the greatest ability to unleash the potential commercialization latent in those scientists. To generate a successful regional cluster, the existence of world class scientific talent is a necessary condition. However, it is not a sufficient condition. The ancillary or complementary factors must also be available to translate this knowledge into a commercialized product. The complementary factors include the presence of venture capital and other forms of finance, the existence of an entrepreneurial culture, and transparent and minimal regulations fostering the start-up and growth processes.
171 citations
TL;DR: In this paper, the authors examined four different innovation support instruments, taken as constituting key elements of the support "system" within the London's Lee Valley region, and considered the strengths and weaknesses of each policy instrument.
Abstract: Innovation support for SMEs is considered from the point of view of the "needs" of SMEs in the context of a specific regional economy – London's Lee Valley region. As identified in the literature and, more specifically, in a survey of 100 innovating SMEs in the study region, attention is focused on the innovation support needs that relate to the size characteristics of SMEs. The difficulties of financing innovation are shown to stem from the attitudes of SME owner managers as well as from supply-side failures. The paper examines four different innovation support instruments, taken as constituting key elements of the support "system" within the region. Drawing on the findings of interviews with client businesses, the paper considers the strengths and weaknesses of each policy instrument. Conclusions relate to the overall impact of innovation support provision, in particular the need for greater integration in the design and implementation of policy instruments.
TL;DR: The authors in this article explored the ingredients that stimulated the development of the biotechnology industry in the US and contrasts conditions with those in Europe, finding that the funding of the medical science research base has been substantially more generous in the U.S. than Europe.
Abstract: This paper explores the ingredients that stimulated the development of the biotechnology industry in the US and contrasts conditions with those in Europe. It examines relationships between established firms and new start-ups; the financing and managerial environment and the organizational environment, whereby firms were able to set up networks of alliances. Its main findings are that: 1) The funding of the medical science research base has been substantially more generous in the U.S. than Europe. It is the funding of the science base rather than of the biotechnology industry directly that has provided the foundations for start-ups to be created out of the science base. 2) It has been easier for U.S. academics to found start-ups, close to their research establishment, and to retain their academic posts and status as well as be involved in a commercial enterprise. In Europe, the scientific/academic and commercial worlds have a wider divide. 3) Start-ups have been concentrated in the therapeutics and agricultural fields, with strong scientific research inputs into their commercialization, in contrast to other sectors where downstream processing innovations have been more important, which have been undertaken in-house by the large incumbent companies. 4) Financing and managerial conditions have been significantly easier in the U.S. for start-ups, in terms of access to venture capital specialising in high technology, ability to use the stock market to raise capital, and access to people able to forge links between scientists and entrepreneurs, and to introduce managerial expertise into new companies. 5) There has been a greater facility in the U.S. than in Europe for alliances to be formed between incumbent companies and indigenous U.S. start-ups; European start-ups have not found similar backing from European incumbent companies.
TL;DR: The role that small firms play in industrial organization has evolved considerably since the second world war as mentioned in this paper, and they play a very different role in industrial organisation research today than they did some three decades ago.
Abstract: The role that small firms play in industrial organization has evolved considerably since the second world war. This paper seeks to document how and why small business plays a very different role in industrial organization research today than it did some three decades ago.
TL;DR: In this article, an empirically-based development taxonomy for small and medium-sized enterprises (SMEs) in the manufacturing sector using panel data recently made available from Australia's Business Longitudinal Survey is presented.
Abstract: This novel methodological paper describes the first stage of an on-going research effort to derive, characterise and employ an empirically-based development taxonomy for small and medium-sized enterprises (SMEs) in the manufacturing sector using panel data recently made available from Australia's Business Longitudinal Survey. Exploratory cluster analysis is used with key enterprise age, size and growth variables to discover if there appear to be any stable development pathways evident in the data. Each of four annual data collections is separately examined, and then comparisons are made of the resulting cluster analysis outcomes over time. Descriptive statistics for various enterprise characteristics facilitate interpretation of the cluster analysis solutions. Using the clusters as markers or signposts over time, three relatively stable SME development pathways are discernible in the longitudinal panel results. The first is a low growth pathway apparently leading to the traditional or life-style SME configuration (around 70 per cent of the panel). The second is a moderate growth pathway possibly leading to the capped growth SME configuration (around 25 per cent of the panel). And the third is a high growth pathway seemingly leading to the entrepreneurial SME configuration (around 5 per cent of the panel). These findings are clearly in accord with the observed rarity of substantial growth amongst SMEs world-wide.
TL;DR: In this article, the development of business incubators in a developing country, namely Nigeria, is reviewed and the current operational status of the seven existing incubators is highlighted as well as the successes and shortcomings associated with the implementation of the programme.
Abstract: The article reviews the development of business incubators in a developing country, namely Nigeria.The current operational status of the seven existing incubators are highlighted as well as the successes and shortcomings associated with the implementation of the programme. This is followed with an assessment of the needs to be addressed before incubators can make the desired impact in stimulating entrepreneurship development and technological innovation. Finally, policy recommendations are made to guide the future development of business incubators in Nigeria so that they can make effective contribution to the goal of promoting small and medium scale enterprises.
TL;DR: Niosi et al. as discussed by the authors examined the characteristics of Canadian clusters in biotechnology and developed the concept of regions as nexus of competencies, a notion already put forward for firms, but that may be relevant to regions within nations and ultimately to nations as well.
Abstract: Knowledge-intensive industries tend to concentrate geographically, because of the many spillovers that they generate. Thus new biotechnology firms often set up in regions that have innovative firms, government laboratories and universities, which attract them to enter. In this paper we unveil some of the characteristics of Canadian clusters in biotechnology: the key regions, their relative importance, and the main firms and government laboratories that attract new entrants. Moreover, we develop the concept of regions as nexus of competencies, a notion already put forward for firms, but that may be relevant to regions within nations and, ultimately, to nations as well. Capabilities of organizations and regions vary, and a thorough study of organizational and regional capabilities should precede the analysis of knowledge spillovers. Toronto is the main center of biotechnology in Canada, followed by Montreal, and Vancouver. The total population of the metropolitan area (a proxy for immediate market size and venture capital) explains the size, location and characteristics of most Canadian clusters. University research is also a key factor explaining the size of the biotechnology clusters, once population is held constant. Within nations, scientific and technical competencies vary strongly among regions. Some regions within countries concentrate a disproportionate share of the capabilities of all developed and developing nations. Moreover, regions tend to concentrate competencies on a few domains of expertise. This is what literature calls "agglomeration effects": companies active in the same field of technology tend to cluster geographically. They do so in order to share a common labor pool, and to obtain ready access to research institutions such as government laboratories and universities, or to key markets and customers, such as large assemblers or government facilities (Feldman et al., 1999). The specialized literature calls these institutions and key markets/customers "entry attractors" (Swan et al., 1998). In many types of science-based industries (SBIs), such as biotechnology, information technology and advanced materials, the major attractors are universities and government laboratories. In a few more mature SBIs, including aerospace and aircraft, large assemblers tend to naturally attract smaller producers of, components and specialized software. In this respect Canada is similar, to other nations (Niosi, 2000). Its competencies cluster around a few large and medium-sized urban agglomerations, such as Toronto, Montreal, Vancouver, Ottawa, Edmonton, and Calgary. Specialized clusters have also developed around smaller cities. This study builds a theory of the competencies of regions using biotechnology as a case study. Government laboratories, as well as universities and a few large firms, attract entry. The goal of the paper is to examine – using quantitative data – the relative competencies of regions in biotechnology, and the role of NRC laboratories and university research.
TL;DR: In this article, the authors discuss the development of the biotechnology industry in an Italian region, Lombardy, and ask why significant innovative activities in biotechnology did not emerge in what might have been considered at the outset a promising area for the growth of this industry and why in very recent years some timid symptoms of dynamism seem to be appearing.
Abstract: This paper discusses the development of the biotechnology industry in an Italian region, Lombardy. It asks why significant innovative activities in biotechnology did not emerge in what might have been considered at the outset a promising area for the growth of this industry and why in very recent years some timid symptoms of dynamism seem to be appearing. After an overview of the patterns of the development of biotechnology in Italy, the specific case of Lombardy, is described. Then, the paper discusses what kind of factors might explain the lagging behind of the Italian (and more generally, European) biotechnology industry vis-a-vis the United States.
TL;DR: The U.K. is the leading challenger of U.S. hegemony in biotechnology exploitation as discussed by the authors, but the specific problem at present is scale and the need to make up ten years lost ground.
Abstract: Today, U.S. biotechnology firms dominate the growing therapeutics and diagnostics sectors despite most of the key discoveries being made by European, and especially U.K. scientists. Lessons have been learned about the economic importance of commercialisation of bioscience. Within Europe, the U.K. is the leading challenger of U.S. hegemony in biotechnology exploitation. Knowledge-driven clusters of start-ups and established smaller and medium-sized businesses have developed in Cambridge and Oxford along with nascent agglomerations in Surrey and Scotland. They are responsible for the turnaround. As in the U.S., intimate links with large pharmaceutical firms and publicly-funded research centres are key to spin-out businesses, suggesting a generic "new economy" model. The specific problem at present is scale and the need to make up ten years lost ground. But the evidence is there that the U.K. is taking up the competitive challenge.
TL;DR: In this article, the authors analyze the degree and relevance of locally integrated input-output relations of innovation systems based on typologies of the wide range of firms within the biotechnological value chain and the forms of co-operation.
Abstract: The dynamic growth of biotechnology in Germany in recent years has an obviously spatial pattern. Some regions show a substantial potential for start-ups and young firms of this new industry whereas others lag behind. The paper is discussing this unequal spatial development elaborating perspectives which derive from recent debates about regional innovation systems. The biotech regions Munich and Rhineland, both winner regions of the BioRegio Competition are described and compared with the situation in Hamburg where biotechnology is much less important. We analyze the degree and relevance of locally integrated input-output relations of innovation systems based on typologies of the wide range of firms within the biotechnological value chain and the forms of co-operation. Moreover, a qualitative estimate is given with respect to the significance of untraded relationships and regional knowledge spillovers. Factors favoring local integration are compared with those favoring input-output systems on a transatlantic scale. The paper discusses the question whether the biotech industries in the regions of Munich, Rhineland and Hamburg represent identifiable regional systems of innovation.
TL;DR: In this article, an empirical analysis of the personal characteristics of Italian high-tech entrepreneurs is presented, focusing on the differences in the characteristics of founders according to the sector of operation of the start-up and investigating whether entrepreneurs in Internet related activities differ from those operating in other ICT industries (especially in manufacturing).
Abstract: This paper is an empirical analysis of the personal characteristics of Italian high-tech entrepreneurs We analyze differences in the characteristics of founders according to the sector of operation of the start-up In particular, we investigate whether entrepreneurs in Internet related activities differ from those operating in other ICT industries (especially in manufacturing) For this purpose, we analyze a sample composed of 246 entrepreneurs that between 1984 and 1999 established 116 new firms that operate in ICT manufacturing and service industries and are located in Northern Italy The findings highlight that Internet entrepreneurs generally are younger and less educated (especially in technical fields) than the other sample founders They quite often are at their first professional experience; if they have prior working experience, it generally is in unrelated industries Such findings are related to evolutionary theories that emphasize the role of the nature of technical change and of the stage of the industry life cycle in influencing the characteristics and behavior of new firms and their founders
TL;DR: In this paper, the authors present a detailed statistical survey of the French biotechnology sector and examine the localisation effects within biotechnology, concentrating in particular on the French case, showing that the localization effects within France are strong and that most firms progress from an entry stage in which they are very dependent on local cluster infrastructures to a mature phase in which their networks become more national/international in focus.
Abstract: The article examines the localisation effects within biotechnology, concentrating in particular on the French case. The paper has two strands of analysis. The first presents a detailed statistical survey of the French biotechnology sector. Among other things, the survey shows that a) localisation effects within France are strong, b) in terms of dependence on local cluster infrastructures (especially universities and related public research institutes), most firms progress from an entry stage in which they are very dependent on local cluster infrastructures, to a mature phase in which their networks become more national/international in focus and c) French firms can be grouped into four general types of firms, ranging from “type 1” growth oriented product firms, to “type 2” niche market players, “ type 3” subsidiaries of larger firms, and “type 4” firms that have been acquired. Localisation effects differ across these firms, esp. across type 1 (international) and type 2 (very localised) firms. The second strand of analysis consists of a review of the localisation and related cluster literature, with implications drawn out for localisation and knowledge spillovers within biotech clusters. It examines the relative effects of scientific centres proximity and compares them to the public policy of start-up creation.
TL;DR: In this paper, the authors introduce a special issue of Small Business Economics, dedicated to networks, opportunity, internationalization and policy, where they discuss the symbiosis of former competitors and the need for new policies.
Abstract: This is the introduction to this special issue of Small Business Economics, dedicated to networks, opportunity, internationalization and policy. As the drivers of globalization are removing barriers, which traditionally segmented the competitive environments of small and large firms, firms of all sizes are joining international networks. Former competitors are now working together and this symbiosis is enhancing competitiveness. Consequently, networking is giving rise to unprecedented opportunities, facilitating internationalization. Simultaneously, new realities are creating the need for new policies.
TL;DR: In this paper, a special focus is placed on the role of small business in the New Economy and how and why it has become more important over time, and how to be a good small business owner.
Abstract: This paper examines how and why the role of small business has become more important over time. A special focus is placed on the role of small business in the New Economy.
TL;DR: In this paper, the influence of the organizational context of a firm on its entrepreneurship was examined, including age, size, resources, and competitive strategy, in a sample of 233 firms.
Abstract: The research reported in this article examines the influence of the organizational context of firm on their entrepreneurship. Specifically, this study examines how the organizational context variables of age, size, resources and competitive strategy affect entrepreneurship and in particular, innovation, proactiveness and risk-taking. Results from a sample of 233 firms showed, as hypothesized, the significant influence of resources and competitive strategy on entrepreneurship. However, size and age were not significant.
TL;DR: A qualitative empirical investigation into the overseas expansion processes of small Asian-originating from the Indian sub-continent-owned firms operating in the UK clothing industry was conducted by as mentioned in this paper.
Abstract: This paper contributes to the growing body of knowledge in international entrepreneurship by reporting on a qualitative empirical investigation into the overseas expansion processes of small Asian (originating from the Indian sub-continent)-owned firms operating in the UK clothing industry The key decision makers within these firms frequently identified themselves as an active, and important, influence upon the actual activities of their firms as international operators For some firms though, a more passive approach to internationalisation could be identified, whereby the receipt of unsolicited orders had an effect on some firms' timing of overseas market entry The balance between the nature of opportunities, that frequently derived from cultural networks, and the constraints of a limited resource base with which to exploit those opportunities, also had a major impact on the direction and pace of certain firms' overseas expansion The findings suggest a general tendency to adopt an incremental approach to internationalisation within this mature trade sector The cultural and business experience of managers, however, was found to have an effect on the pace and direction of the overseas expansion Recommendations on the likely efficacy and effectiveness of public/private sector interaction within the area of international entrepreneurship involving entrepreneurs from Asian backgrounds are offered
TL;DR: In this paper, the authors studied the strategies that biotechnology firms in Sweden implement, how they manage to keep their competence ahead and how they finance their research, and whether a firm chooses an intermediary or integrating position is not correlated to age or size.
Abstract: The purpose of this study is to create an understanding of the strategies that biotechnology firms in Sweden implement, how they manage to keep their competence ahead and how they finance their research. Their main factor of success is the ability to rapidly identify the latest research findings from academia and turn them into commerciable technology. The collaboration with academia is thus an important part of the networking strategy of the biotechnology firms in Sweden. Outsourcing parts of their activities keeps the firms flexible, which is necessary in this high risk business. Whether a firm chooses an intermediary or integrating position is not found to be correlated to age or size. It is instead heavily influenced by the strategies of large pharmaceutical companies, the nature of the firms' core technology, expectations of investors and the overall access of capital. The private capital market in Sweden has undergone a change during the last years. New marketplaces for young, innovative firms have been created in Sweden and their existence is most likely one reason for the increasing presence of venture capitalists in the country. That, in turn, increases the opportunities for new firms within biotechnology to develop in Sweden.
TL;DR: The authors examines philanthropy as practiced by entrepreneurs in America, and compares this to the Chinese model of wealth redistribution, and concludes that there appears to be a relationship between philanthropy, government and entrepreneurship.
Abstract: Philanthropy tries to improve the condition of people Yet there are different models of philanthropy American philanthropy tries to improve conditions for different people, without reference to race or language; this evolved from the notion of equality In contrast, Chinese clans arose in Singapore, as a response to a society segmented along racial and linguistic lines; in a culture that emphasized face, rich entrepreneurs could "buy" prestige and leadership positions, by assisting their poor This article examines philanthropy as practiced by entrepreneurs in America, and compares this to the Chinese model of wealth redistribution The latter is centered on clan associations In the new economy, however, these have been losing importance, as governments take on some roles previously taken care of by such associations; this includes, for instance, education and assistance to start-up entrepreneurs We conclude that there appears to be a relationship between philanthropy, government and entrepreneurship
TL;DR: This paper examined the influence of Chinese cultural values on marketing practices in different socio-cultural settings and business contexts, for example the United Kingdom, Hong Kong and China, and found that the specific marketing practices of Chinese small firms in mainland China are different from those of their counterparts in the UK and Hong Kong.
Abstract: This paper examines the influence of Chinese cultural values on marketing practices in different socio-cultural settings and business contexts, for example the United Kingdom, Hong Kong and China. 20 Chinese small firms in China were selected and their owner-managers were interviewed. Findings of interviews undertaken by Brooksbank et al. (1992) with 20 British small firm chief marketing executives, and Siu (1997) with 26 Chinese owner-managers in Hong Kong, were collated to form a database for comparison purposes. The research results suggest that the specific marketing practices of Chinese small firms in mainland China are different from those of their counterparts, for example, British and Hong Kong Chinese small firms. A tentative model is developed explaining the factors that appear likely, on the basis of this research, to affect the marketing performance of small firms in China.
TL;DR: In this article, the authors used data from a sample of the self-employed in Zimbabwe to compute hazard rates by location and economic sector of the activity and found that personal characteristics are significant in explaining differences between individuals in the duration of self-employment.
Abstract: The duration of self-employment is an important policy consideration in developing countries. We use data from a sample of the self-employed in Zimbabwe to compute hazard rates by location and economic sector of the activity. We partition the data by date of entry to assess the impact of economic liberalization measures. Our results show that cost of finance, along with location and sector to be important variables in explaining duration. We then partition our sample in order to control for the effects of location, year of entry and type of activity. Our sub-samples thus consist of individuals facing the same history of macroeconomic trends in similar locations and activities. The results show that personal characteristics are significant in explaining differences between individuals in the duration of self-employment.
TL;DR: In this paper, the authors propose an econometric application to detect the factors that affect the size and the performance of local clusters of small and medium firms (SMEs) such as industrial districts.
Abstract: The aim of this paper is to propose an econometric application in order to detect the factors that affect the size and the performance of local clusters of small and medium firms (SMEs) such as industrial districts. Our purpose is to extend some basic issues of models in economic geography in order to account for further micro components that seem fostering the rise and performances of local clusters. We succeed in stating that, in addition to the home market effect and transport costs, firms belonging to industrial districts improve their competitiveness by exploiting some assets, such those involved by ad-hoc services, generated inside the district by the co-operation among firms. Moreover looking for fixed effects in the study of firms' competitiveness allows us to determine that sectorial differences do not affect substantially the behavior and performance of SMEs.