Brexit and Skill Shortages: An Empirical Analysis of UK SMEs

This paper examines the perspectives of SMEs on Brexit and skill shortages using cross-sectional data of 2,969 SMEs from a UK Government’s Small Business survey for 2016. The logistic regression with clustered standard errors is applied to analyse the association between SMEs considering Brexit as a major business obstacle and the probability of SMEs identifying skill shortages in their businesses. The results show that firms with a shortage of managerial skills/expertise have a 6.5% higher probability to report that Brexit will affect their businesses, followed by difficulties in staff recruitment (4.5%) and shortage of skills within external labour markets (3.8%). Policy recommendations are provided

Nutrition, labour productivity and food security in Thailand

PhD ThesisMany households in less developed countries suffer from food insecurity which is unreliable access to a sufficient quantity of nutritious food. It is a major cause of malnutrition, and may lead to reduced worker capacity and low productivity. This study examines the impact of nutrient intake on the productivity of rice-producing households in Thailand. There are three objectives: first, to analyse the relationship between nutrient intake and labour productivity; second, to examine factors affecting the nutrition-labour productivity relationship; and third, to study the links between nutrition, labour productivity and food security. Agricultural household models are used to examine decision-making behaviour, namely production, consumption, and labour allocation. The efficiency wage hypothesis is also examined where an increase in nutrient consumption increases labour productivity. Accordingly, labour is determined by caloric consumption, and nutrition affects productivity. The empirical study adopts econometric methods with data from Thailand's Socio-Economic Survey for 2011 for 2,781 rice-farming households. A semi-log wage equation and a Cobb-Douglas production function are estimated; and a logit model is used to examine the determinants of food security on the production-consumption relationship. Results from the wage equation show that increasing consumption of calcium, vitamin A, vitamin C and iron increase household income, while increasing calorie intake reduces income. An increase in the consumption of grains and starches reduces income, whereas extra consumption of meat and poultry, fruits, vegetables and nuts lead to an increase in income. Male household heads earn more than female heads. Higher levels of education, age, the dependency ratio, and farm size increase income. In the production function, all nutrients affect farm productivity positively which supports the efficiency wage hypothesis. The logit results show that income, education, food expenditure, owning livestock, production for own-consumption, farm size, fertiliser use, and the use of family labour improve food-security; while household size, the dependency ratio, and total household expenditure do not. In conclusion, enhancing micronutrient intake is an investment for improving productivity. The Thai government should focus on building awareness of nutrition in diet and provide dietary guidelines. Food quality and safety standards should be promoted to improve accessibility to nutritious foods. Policies on vitamin and mineral fortification of processed foods, including cooking oils, flours, salt, and sweetness additives, could be designed to improve nutrient-content

Social Media Business Networks and SME Performance: A Rural-Urban Comparative Analysis

Social media business networks provide small- and medium-sized enterprises (SMEs) with a modern platform to network, resulting in improved business performance. However, rural SMEs are less likely to access these networks and often underperform urban counterparts. This paper provides a rural–urban comparative analysis of business performance across SMEs for both members and non-members of social media business networks. Empirically, the analysis draws on data of over 13,000 SMEs from the 2015-UK Government's Small Business Survey. Inverse Probability Weighting is used to control for selection bias of firms selecting into a location and business network and for variations in business characteristics. The results reveal that rural SMEs that are members of social media business networks tend to register higher turnover and seek to grow sales compared to rural and urban SMEs that are non-members. For turnover, rural firms that are members of these business networks perform as well as urban SMEs that are members. However, for sales growth, they underperform urban counterparts. Therefore, the development of SMEs’ performance in rural areas requires enhanced online business support environments, improved digital infrastructure and connectivity, the creation of online co-working spaces, and increased digital and technological skills

Does membership of local Chambers of Commerce networks enhance rural SME performance?:An empirical analysis

Purpose: Local Chambers of Commerce networks provide small- and medium-sized enterprises (SMEs) with an opportunity to access essential information and networking with other businesses, resulting in improved business performance. However, rural SMEs are less likely to participate in these networks and often possess lower performance. This paper aims to examine the relationship between being members of local Chambers of Commerce networks and rural SMEs’ performance by comparing business performance between rural SMEs who are members and non-members of local Chambers of Commerce networks. This paper also further explores difference in business growth plans between rural SMEs members and non-members. Design/methodology/approach: The empirical analysis draws on cross-sectional data of 3,769 rural SMEs in England and Wales from the UK's Government Longitudinal Small Business Survey 2015. Propensity score matching (PSM) is applied to control for selection bias and variations in business characteristics before comparing business performance, measured in terms of annual turnover, sale growth and profitability, between rural SMEs that are members and non-members of local Chambers of Commerce networks. Findings: Our results show that rural SME members of local Chambers of Commerce networks are more likely to grow their sales than non-members. However, they perform as good as non-members in terms of turnover and profitability. The results also emphasise that local Chambers of Commerce networks are crucial for rural SMEs to develop the skills of the workforce and leadership capability of managers, new product/service development and new working practices. Therefore, to enhance rural SMEs' performance, tailoring the services of local Chambers of Commerce to support rural businesses' needs and encouraging rural SMEs to make use of business networks are recommended. Practical implications: The paper unpacks the relationships between being local Chamber of Commerce membership and business performance, offering lessons for rural SMEs to boost their business performance and growth through participating in local business association networks. Originality/value: This paper is the first study that explores the comparative analysis of business performance and growth plans between rural SMEs that are members and non-members of the local Chamber of Commerce networks. We provide an empirical evidence-based analysis to existing literature regarding the advantages of being local Chamber of Commerce memberships to enhance business performance in rural areas.</p

How can rural businesses thrive in the digital economy? A UK perspective

Unlocking the digital potential of the UK's rural areas is important for the future of rural businesses, rural communities and the UK economy as a whole. The use of digital technologies is yielding new opportunities for businesses, including those located rurally, to enhance business growth and economic development, which significantly contributes to UK prosperity. However, businesses, especially small and medium-sized enterprises (SMEs), in rural areas are often digitally disconnected due to inferior digital connectivity and digital exclusion, including lack of internet access and lower levels of digital literacy. Therefore, this paper provides a better understanding of the rural digital economy, highlighting key digital challenges and opportunities for rural businesses in the UK. An extensive review of both academic and non-academic literature is conducted to identify key digital challenges, digital opportunities, and solutions to overcome the digital disadvantage for rural businesses in the UK in the digital age. Our review emphasises the effectiveness of public sector market interventions in developing broadband infrastructure and smarter digital training and skills development to help address digital deprivation in rural areas. A series of policy recommendations is then formulated to support rural business growth in the digital age and contributing to debates regarding smart rural development in rural areas. This paper has potential limitations due to a non-systematic literature review. Therefore, we recommend applying a systematic review as well as empirical and place-based research to explore the emerging themes of this study for future research

Spatial Disparities in SME Productivity: Evidence from the Service Sector in England

This paper identifies the key determinants of spatial variability of productivity, focusing on small and medium-sized enterprises (SMEs) in the service sector across England. Due to the hierarchically structured data, multilevel analysis is applied to distinguish the effects of a firm's internal variables and (sub)regional factors on productivity. Using cross-sectional data for 10,400 SMEs from the UK government's Small Business Survey, 2015, the results show that firm-specific determinants significantly influence productivity. The findings also indicate that location, local enterprise partnerships (LEPs) and where firms operate play a pivotal role in determining SME productivity. In particular, at the LEP level, increasing labour supply, promoting local funding and improving broadband speed potentially enhance firm productivity