Comparing the conditions for small business and entrepreneurship in Sweden and Australia: Lessons for the European Charter for Small Enterprises

A growing body of literature is concerned with explaining cross-national performance of small business and entrepreneurs in advanced economies. This literature has considered a range of policy and institutional variables which create an environment supportive of small firms and entrepreneurial activities including macroeconomic variables such as taxation, labour market regulation, social security and income policy; regulatory factors such as establishment legislation, bankruptcy policy, administrative burdens, compliance costs, deregulation and competition policy; and cultural factors such as social and cultural norms that support entrepreneurship. However, this literature has not always distinguished between the policy environment of small firms operating in different industry sectors. The purpose of this paper is to examine the institutional and policy environment of small firms in knowledge intensive sectors. The characteristics of the business environment of particular relevance to knowledge intensive firms are somewhat different from the conditions for entrepreneurship and small business success more generally. This paper compares the science, technology and industry infrastructure of Australia, Denmark, Sweden with other OECD countries. The purpose of the paper is to identify cross-national differences in the business environment of small knowledge intensive firms. The paper seeks to explore whether particular institutional environments appear to be more supportive of small firms in knowledge intensive sectors.

Performance of small and medium enterprises and the impact of environmental variables: evidence from Vietnam

thesis is developed from a real life application of performance evaluation of small and medium-sized enterprises (SMEs) in Vietnam. The thesis presents two main methodological developments on evaluation of dichotomous environment variable impacts on technical efficiency. Taking into account the selection bias the thesis proposes a revised frontier separation approach for the seminal Data Envelopment Analysis (DEA) model which was developed by Charnes, Cooper, and Rhodes (1981). The revised frontier separation approach is based on a nearest neighbour propensity score matching pairing treated SMEs with their counterfactuals on the propensity score. The thesis develops order-m frontier conditioning on propensity score from the conditional order-m approach proposed by Cazals, Florens, and Simar (2002), advocated by Daraio and Simar (2005). By this development, the thesis allows the application of the conditional order-m approach with a dichotomous environment variable taking into account the existence of the self-selection problem of impact evaluation. Monte Carlo style simulations have been built to examine the effectiveness of the aforementioned developments. Methodological developments of the thesis are applied in empirical studies to evaluate the impact of training programmes on the performance of food processing SMEs and the impact of exporting on technical efficiency of textile and garment SMEs of Vietnam. The analysis shows that training programmes have no significant impact on the technical efficiency of food processing SMEs. Moreover, the analysis confirms the conclusion of the export literature that exporters are self selected into the sector. The thesis finds no significant impact from exporting activities on technical efficiency of textile and garment SMEs. However, large bias has been eliminated by the proposed approach. Results of empirical studies contribute to the understanding of the impact of different environmental variables on the performance of SMEs. It helps policy makers to design proper policy supporting the development of Vietnamese SMEs.

Firm growth and barriers to growth among small firms in India

Empirical work on micro and small firms focuses on developed countries, while existing work on developing countries is all too often based on small samples taken from ad hoc questionnaires. The census data we analyze here are fairly representative of small business structure in India. Consistent with findings from prior research on developed countries, size and age have a negative impact on firm growth in the majority of specifications. Enterprises managed by women have lower expected growth rates. Proprietary firms face lower growth on the whole, especially if they are young firms. Exporting has a positive effect on firm growth, especially for young firms and for female-owned firms. Although some small firms are able to convert know-how into commercial success, we find that many others are unable to translate it into superior growth.

An investigation into the adoption and implementation of electronic commerce in Saudi Arabian small and medium enterprises

Saudi Arabian Small and Medium Enterprises (SMEs) will face fierce competition from new entrants to local markets as a result of their accession to the Word Trade Organisation (WTO), and electronic commerce (e-commerce) technologies can reinforce SME’s competitive edge. This study investigates the state of e-commerce adoption and analyses the factors that determine the extent to which SMEs in Saudi Arabia are inclined towards deploying e-commerce technologies. This could assist future firms in designing effective implementation projects. Seven SMEs’ e-commerce adoption levels are studied as a case. The Technology-Organization-Environment (TOE) framework was used as the major source of inspiration in our analysis of e-commerce adoption amongst Saudi SMEs. In addition to advancing research on e-commerce in Saudi Arabia, this chapter also highlights several directions for future inquiry and implications for managers and policymakers.

An analysis of the characteristics of small and medium enterprises that use intellectual property

This report documents the creation of a major new database that links IP activity to all UK firms. It then analyses the characteristics of IP active firms, with a specific focus on SMEs.

The Strategical Impact of Knowledge Markets and Knowledge Management for Small and Medium Enterprises

According to the rapidly changing environment small and medium enterprises constantly need to adapt their strategies and activities. The transition from the industrial economy to knowledge-based economy results in the increasing of the volume of the available information. Therefore knowledge markets are needed and innovation centers have to be developed. An effective knowledge management system helps small and medium enterprises to overcome their disadvantages and compete with big corporations. The review of current developments in the field of knowledge markets is also made.

An investigation into the adoption and implementation of electronic commerce in Saudi Arabian small and medium enterprises

Saudi Arabian Small and Medium Enterprises (SMEs) will face fierce competition from new entrants to local markets as a result of their accession to the Word Trade Organisation (WTO), and electronic commerce (e-commerce) technologies can reinforce SME's competitive edge. This study investigates the state of e-commerce adoption and analyses the factors that determine the extent to which SMEs in Saudi Arabia are inclined towards deploying e-commerce technologies. This could assist future firms in designing effective implementation projects. Seven SMEs' e-commerce adoption levels are studied as a case. The Technology-Organization-Environment (TOE) framework was used as the major source of inspiration in our analysis of e-commerce adoption amongst Saudi SMEs. In addition to advancing research on e-commerce in Saudi Arabia, this chapter also highlights several directions for future inquiry and implications for managers and policymakers.

A beszerzés helye és szerepe a Magyarországi kis- és középvállalatoknál (The Role of Purchasing in the Hungarian Small and Medium Enterprises)

A kis- és középvállalkozások (kkv-k) a legtöbb országban, így Magyarországon is kiemelt szerepet töltenek be a gazdaság életében. A velük kapcsolatos kutatások elérkeztek abba a fázisba, amikor például a kisvállalkozás- fejlesztés és az ellátásilánc-menedzsment összekapcsolásával megismerhetjük egy adott vállalati funkció szerepét és helyét a célcsoportban. A szerzők tanulmányukban egy kutatás eredményeit mutatják be, mely egyenrangú módon fókuszál a beszerzési tevékenység és a kkv-k sajátosságaira. A beszerzési aspektusok kiemelésével lehetőség van mélyebben megismerni a kkv-k bizonytalanságának forrásait, a beszállítókkal kapcsolatos igényeik megfogalmazását, a vevők preferenciáit, melyen keresztül általános kép kapható a szállítófejlesztés lehetőségeiről, kifejezetten a beszerzési tevékenység informatikai támogatásáról, továbbá véleményükről a beszerzés mint szolgáltatás kiszervezésével kapcsolatban. A kutatást megalapozó kérdőíves felmérés nemzeti összehasonlításra is lehetőséget ad, valamint segíti egy adott tevékenységre fókuszálva a hazai kis- és középvállalkozások helyzetének bemutatását. ______ Small and medium enterprises (SME) play an important role in the economy of Hungary, just like in most other countries. Studies on SMEs recently have focused on the role of a particular company function in the target group by linking the development of SMEs to new advanced options, such as supply chain management. This paper provides an overview of authors’ ques a questionnaire research focusing on the specific characteristics of both purchasing and SMEs. Focusing on the purchasing aspects enables us to gain a deeper knowledge on the main causes of the instability of SMEs as well as on their expectations regarding suppliers and a better understanding on the preferences of the clients. As a result authors can highlight the main options of developing the supply chain as well as the IT support of purchasing and they can state their opinion on the outsourcing of the purchasing as a service. The questionnaire survey providing the basis for the study enables authors to make international comparisons as well as to present the current state of the Hungarian SMEs focusing on a particular business activity.

A hazai kis- és közepes vállalatok szociokulturális beállítódása a hofstede-dimenziók mentén = The socio-cultural attitudes of the Hungarianc small and medium enterprises along the Hofstede dimensions

A kis- és közepes vállalkozások (KKV-k) kutatása viszonylag új, és emiatt meglehetősen feltáratlan terület, bár a megjelenő tudományos cikkek és eredmények száma és minősége évről évre jól érzékelhetően nő (Collinson – Shaw, 2001). A KKV-kutatások igen fontos sajátossága továbbá, hogy kifejezetten interdiszciplináris terület, megközelíthető a menedzsment, az innovációkutatás, a marketing, a szervezetszociológia, de akár a pszichológia felől is. Több kutatás is felveti a szociokulturális háttér jelentőségének kérdését KKV-k esetében. A szerzők kutatásuk során kvantitatív felmérést végeztek 200 vállalkozó körében a Hofstedeskála (Hofmeister et al., 2008) felhasználásával, melynek eredményeként kiderült, hogy a KKV-vezetők beállítódása jelentősen különbözik mind a hazai nagyvállalati vezetőktől, mind az általános lakosságtól. Jelen tanulmányunkban bemutatjuk azokat a Hofstede-dimenziókat, amelyek mentén karakteres különbségek jelentkeztek a vállalkozók és a nagyvállalati vezetők, valamint a társadalom összessége között. Az eredmények alapján határozottan kirajzolódnak olyan „vállalkozói” gondolkodásmódbeli sajátosságok, mint a nagyobb versenyszellem, a közvetlenebb, kevésbé hierarchikus működési stílus, a rendkívül erős, rövid távú orientáció, valamint a kockázatvállalás rendhagyóan alacsony foka. _____ Although there has been an increasing academic attention towards small and medium-sized enterprises, it is still a novel research area with a number of unanswered questions. It is also an especially interdisciplinary field as it can be approached from various viewpoints such as management, innovation, marketing, organization sociology or even psychology. Different academic disciplines have studied the influence of socio-cultural factors and concluded that they are relevant aspects of entrepreneurial activity. This paper presents the results of the authors’ quantitative research which aimed at finding patterns in the software of the minds of SME managers where they applied Hofstede’s cultural scale (Hofmeister et al., 2008). Drawing upon data from 200 Hungarian SMEs, the results indicate they have different attitude and way of thinking compared to large company managers and to the general Hungarian population. This paper points out the relevant Hofstede dimensions where significant differences have been revealed. The main finding of the study is that managers of small and medium businesses have a special mindset which can be characterized with higher level competitiveness, more direct and less hierarchic operation, extremely high level of short term orientation and low level of risk taking

The regulatory environment of the section of the non-standardized goods market - The findings of an interview research on Hungarian construction industry small enterprises

In this paper the behavior of economic actors shown in the uncertain quality goods markets is examined from the perspective of the sociology of markets. The analysis uses the findings of in-depth interviews conducted in 2011 and 2012 respectively amongst small and medium size entrepreneurs working in construction industry. In the Hungarian construction industry neither formal rules, nor vocational chambers, are able to create a safe environment for entrepreneurs. Nevertheless, networks created as a result of micro-selection steps might be able to enforce the quality of services, observe deadlines and what is more, ensure payment discipline. In this market, the typical high risk can be reduced by relationships. Networks reduce also the cost of transactions, since the important part of the services in this field could only be standardized at significant costs.

A hazai kis- és középvállalkozások elektronikus banki ügyintézéssel kapcsolatos szokásai, attitűdjei és jövőképei (E-banking habits, attitudes and vision of the hungarian small and medium enterprises)

A közelmúltban készült kutatásban a szerzők azt vizsgálták, hogy a kis- és középvállalkozásokban az elektronikus banki ügyintézéssel kapcsolatban milyen szokásaik, attitűdjeik és jövőképeik alakultak ki. A több mint ötszáz KKV-vezetővel készült interjú alapján elmondható, hogy a vállalkozás elektronikus ügyintézéssel kapcsolatos hozzáállása egyáltalán nem, vagy csak nagyon gyenge mértékben hozható összefüggésbe a cég objektív tulajdonságaival, például a létszámmal, az árbevétellel vagy a tevékenységi körrel. Egyértelműen látszik, hogy már az elektronikus banki ügyintézéssel kapcsolatos fogalmak értelmezése is problémát jelent a KKV-vezetők egy részénél. A tudásbeli hiányosságok pedig egyértelműen befolyásolják az e-banking attitűdöt és a használati szokásokat, pedig az elektronikus csatornákat használók elégedettsége minden vizsgált bank ügyfeleinek esetében 80% fölötti értékeket mutat. Így a legfontosabb kérdés az, hogy miként lehetne megértetni a „Szkeptikusok”-kal és a „Mérlegelők”-kel, hogy érdemes a „Haladók” klaszterébe tartozni. Az ügyfélelégedettség sikertényezői egyértelműen a biztonság, az időben és térben széles körű elérhetőség és az egyszerű használat. A válaszadók jövőképe szerint a banki szolgáltatások igénybevétele egyre inkább eltolódik majd az elektronikus csatornák irányába. Jelen cikkben a kutatás legfontosabb tanulságait mutatják be a szerzők. _________ The authors’ research was conducted to explore the ebanking attitudes, habits and vision of small and medium enterprises. By the interviews of more than 500 managers of SMEs, it is concluded that e-banking attitudes are not, or not significantly related to the objective characteristics of the enterprises, e.g. to the number of employment, the revenues or its activities. It became clear, that the interpretation of the specific e-banking terms means an important problem for some managers. The deficiencies of knowledge have direct effects on e-banking attitude and the use of electronic banking methods of the enterprises, although the value of the satisfaction level is above 80% among the customers of each examined banks. Thus, the main objective is to explain to the “Scepticals” and the “Considerers” the benefits of the “Progressives” cluster. The most important success factors of customer satisfaction are safety, availability in time and space and ease of use. According to the vision of the respondents, banking services will probably be shifted towards e-channels. In this study, the most important findings of our researches were summarized.

Improving innovation and performance of Social Enterprises: Knowing what they know

Social Enterprises (SEs) are normally micro and small businesses that trade to tackle social problems, and to improve communities, people’s life chances, and the environment. Thus, their importance to society and economies is increasing. However, there is still a need for more understanding of how these organisations operate, perform, innovate and scale-up. This knowledge is crucial to design and provide accurate strategies to enhance the sector and increase its impact and coverage. Obtaining this understanding is the main driver of this paper, which follows the theoretical lens of the Knowledge-based View (KBV) theory to develop and assess empirically a novel model for knowledge management capabilities (KMCs) development that improves performance of SEs. The empirical assessment consisted of a quantitative study with 432 owners and senior members of SEs in UK, underpinned by 21 interviews. The findings demonstrate how particular organisational characteristics of SEs, the external conditions in which they operate, and informal knowledge management activities, have created overall improvements in their performance of up to 20%, based on a year-to-year comparison, including innovation and creation of social and environmental value. These findings elucidate new perspectives that can contribute not only to SEs and SE supporters, but also to other firms.