Introduction: economic performance and small business

This paper introduces the special issue of Small business Economics on Performance. The concept of economic performance refers to the degree to which society's resources are being used as efficiently as possible. Where the field of industrial organization has emphasized the influence of market concentration on economic performance, the papers of this special issue zoom in on the link between firm size and economic performance

De Ondernemerschapseconomie

De overgang van de managed naar de entrepreneurial economie wordt aangetoond met behulp van de relatie tussen de TEA-index (Total Entrepreneurial Activity) en het ontwikkelingsniveau van een economie. Vervolgens wordt met behulp van veertien dimensies het onderscheid tussen de twee economieën besproken

Productivity in Small Business: an analysis using African data

Labor and floorspace cost functions are derived for small business trade. Relationships are proposed between average volume of labor or average floorspace per establishment on the one hand, and average size per establishment, average rental paid, percentage selling space, and indicators of business type and location on the other. Promising estimation results are reported using South African data of 1979/1980. The method however is not restricted to the South African case. A productivity business support system can be developed providing productivity standards for any area in the small (service) business. An analysis similar to the one presented here, but relating to the area in question, should precede the development of such a system

Labour productivity, economies of scale and opening time in large retail establishments

Differences in labour productivity are dealt with for large French retail establishments. Influences of scale, weekly opening time, assortment composition, wage rate and share of counter service are considered. The relationship used is a result of analyses in the field of small retail establishments

Profit margins in Japanese retailing

Using a rich data source, we explain differences and developments in profit margins of medium-sized stores in Japan. We conclude that the protected environment enables the retailer to pass on all operating costs to the customers and to obtain a relatively high basic income. High service levels are positively related with high profit margins, illuminating the importance of service in Japan. Small store competition does not affect performance of medium-sized stores, because small stores operate under circumstances different from those of medium and large stores

Postmaterialism Influencing Total Entrepreneurial Activity across Nations

The relative stability of differences in entrepreneurial activity across countries suggests that other than economic factors are at play. The objective of this paper is to explore how postmaterialism may explain these differences. A distinction is made between nascent entrepreneurship, new business formation and a combination of the two, referred to as total entrepreneurial activity, as defined within the Global Entrepreneurship Monitor (GEM). The model is also tested for the rate of established businesses. The measure for postmaterialism is based upon Inglehart’s four-item postmaterialism index. A set of economic, demographic and social factors is included to investigate the independent role postmaterialism plays in predicting entrepreneurial activity levels. In particular, per capita income is used to control for economic effects. Education rates at both secondary and tertiary levels are used as demographic variables. Finally, life satisfaction is included to control for social effects. Data from 27 countries (GEM, World Values Survey and other sources) are used to test the hypotheses. Findings confirm the significance of postmaterialism in predicting total entrepreneurial activity and more particularly, new business formation rates

Explaining the entrepreneurial activity rate of women: a macro-level perspective

The present study aims at explaining female entrepreneurship from a country perspective. Explanatory variables are derived from three streams of literature, including the literature on the determinants of entrepreneurship in general, on female labor force participation, and on female entrepreneurship. To test hypotheses we make use of Global Entrepreneurship Monitor data, including total entrepreneurial activity rates (nascent entrepreneurs and owner/managers of new firms) for both women and men for 2002, as well as a range of other (economic, demographic, institutional and cultural) variables from standardized national statistics. We find that the factors determining female and male entrepreneurship at the macro-level are fairly similar

Entrepreneurship and the Business Cycle

We study the cyclical pattern of entrepreneurial activity. Results across 22 OECD countries for the period 1972-2007 show that entrepreneurial activity is a leading indicator of the business cycle in a Granger-causality sense. This contradicts existing theoretical hypotheses which predict that entrepreneurship is pro-cyclical or not cyclical. We discuss the causes and implications of this finding which have immense policy relevance during the second economic crisis of the 21st century

Determinants of internal and external R&D: some Dutch evidence

Innovating firms can choose to engage in either internal or external R&D, or in both. In the current study, we shall examine internal and external R&D separately to determine empirically the market structure characteristics explaining the external R&D share and the differences in market structure determinants between internal and external R&D. Our results indicate that a government policy that aims at stimulating technological progress by offering external research facilities is particularly interesting for smaller, capital-intensive firms operating in less concentrated markets