The relationship between the size, age and growth rate of firms is examined for a large sample of... more 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 geographically concentrated area. Micro and small firms are dominant in the industrial structure and thus their growth patterns are crucial to the economic growth of the region. The period of study is of particular interest because it allows us to evaluate the effects of various regional development policy programs on the growth and formation of firms. The data is an unbalanced panel covering the period 1993–1998. We allow for the exit and entry of firms. The growth rate is defined in terms of the number of employees, sales and assets. In the estimation of the growth rate we control for various factors characterizing the sample firms, their capital structure, performance, human capital, and local labor market conditions. Our results show that the relationship between the growth, size and age of firms is very sensitive with respect to the method of estimation, functional form and definition of growth and size.
Diffusion of innovations plays an important role for incremental change leading to sustained deve... more Diffusion of innovations plays an important role for incremental change leading to sustained development in all societies. The diffusion of an innovation is in fact determined by a stream of improvements in the performance characteristics of that innovation, its progressive modification and adaptation. The local technological capability and indigenous knowledge can contribute significantly to the process of adaptive improvements. This paper hinges briefly upon the interface between innovation and diffusion and the role of adaptive improvements to this effect in the context of promoting technologies in rural micro-industries. Observations made in the paper are based on a sample survey comprising of three phases undertaken recently on a number of small and medium industries (SMIs) covering various districts of Bangladesh. It is found that accumulated indigenous knowledge embodied in local farmers and artisans play a crucial role in innovation–diffusion interaction.
This paper explores the role that action learning might play in micro and small enterprise develo... more This paper explores the role that action learning might play in micro and small enterprise development. It is divided into two parts. The first part focuses upon the distinctive characteristics of smallness and ownership and their implication for management development processes in the owner managed firm. In particular the impact of personal values, ways of doing things and distinctive forms of learning are explored. The argument points to the emotional underpinning of the ways in which the organisation is developed and run. The challenges to action learning are then reviewed. The second part focuses upon the ‘institutional’ factors that stand in the way of effective approaches to owner manager learning and in particular how they impact on the way that knowledge is delivered and pedagogies applied by business education organisations to the small firm. It is argued that the pervasive corporatism of the approach does much to explain why owner managers are reluctant to pay for existing training and education offers. The barriers that confront action learning approaches are examined. Overall it is concluded that action learning is central to effective owner manager learning, that there are distinctive skill challenges for action learning facilitators but that there need to be major changes in institutional norms.
MicSMEs: how they are defined, how many there are and where they are located Given the need for i... more MicSMEs: how they are defined, how many there are and where they are located Given the need for information on smaller enterprises, the first question that arises is: why define economic units by size? There are at least two possible responses: i) for purely statistical purposes, and ii) for policy purposes. Apart from these reasons, however, defining economic units in this way will always be useful for This paper is part of a FUNDES project on indicators for small and medium-sized enterprises (SMEs) in Latin America. I would like to express my appreciation for the comments of Albert Berry and an ECLAC external referee and for the extensive cooperation received in the drafting of this paper from all the FUNDES units working in 10 countries on BEE (these units will henceforth be referred to as BEE units). 1 The FUNDES network covers 10 countries where the foundation provides consultancy, training, services to improve the business environment, e-business services and others. These countries are Argentina,
Faculty of Commerce-Economics Working Papers, 2003
The economic and social crisis that afflicted East Asia from mid 1997 produced the biggest setbac... more The economic and social crisis that afflicted East Asia from mid 1997 produced the biggest setback to poverty reduction in the region for several decades, as well as aggravating social vulnerabilities. There were many dimensions to this, including: falling incomes; rising absolute poverty and malnutrition; declining public services; threats to educational and health status; increased pressure on women and children; and increased crime and violence.
... Microfinance Programs Studied The three microfinance institutions (MFIs) included in this stu... more ... Microfinance Programs Studied The three microfinance institutions (MFIs) included in this study (FINCA, FOCCAS, PRIDE) differ in ways that may influence the profile of clients who join them (Barnes, Morris, & Gaile, 1998; Barnes, Gaile, & Kibombo, 2001). ... E n terp rise O n e ...
Innovation is key to technology adoption and creation, and to explaining the vast differences in ... more Innovation is key to technology adoption and creation, and to explaining the vast differences in productivity across and within countries. Despite the central role of the entrepreneur in the innovation process, data limitations have restricted standard analysis of the determinants of innovation to consideration of the role of firm characteristics. The authors develop a model of innovation that incorporates the role of both owner and firm characteristics, and use this to determine how product, process, marketing, and organizational innovations should vary with firm size and competition. They then use a new, large, representative survey from Sri Lanka to test this model and to examine whether and how owner characteristics matter for innovation. The This paper-a product of the Finance and Private Sector Team, Development Research Group-is part of a larger effort in the department to study entrepreneurship and innovation. Policy Research Working Papers are also posted on the Web at http://econ.worldbank.org. The author may be contacted at [email protected].
Most enterprises, from the smallest to the largest, need capital. Enterprise can play a crucial r... more Most enterprises, from the smallest to the largest, need capital. Enterprise can play a crucial role in alleviating poverty. In developing economies, women's role in alleviating poverty through enterprise has long been recognised, and they have been received as a client group. However, poor women lack the capital required for enterprise start-ups and although lending mechanisms exist in their economy, mainstream financial institutions are not oriented towards providing them with the funding they require. Microfinance generally refers to the provision of financial services (e.g.: savings, credit, insurance) to the poor, those who normally do not have access to formal financial institutions. Non-Governmental Organisations (NGOs) in India have promoted micro-finance through women's self-help groups. However, the different institutional forms are not value-neutral and vested interests are involved. The interests of people and those of micro-financing institutions (MFIs) sometimes compete and conflict.
This paper presents an exploratory study aimed at conceptualizing and testing a model to predict ... more This paper presents an exploratory study aimed at conceptualizing and testing a model to predict the influence of organizational and managerial factors on innovativeness in traditional micro and small enterprises (MSEs). Data was collected through in-depth interviews based on a structured survey with the owner/manager of 37 Peruvian MSEs in the furniture industry. The Partial Least Square (PLS) path analysis reveals that the organizational structure, the degree of a formal approach in the innovation processes, as well as the use of external linkages to acquire knowledge and ideas from other organizations, have a significant positive effect on firm innovativeness. By contrast, organizational culture, innovation strategy and customer involvement did not prove to be meaningful stimuli. This research contributes to increase the body of knowledge in the field of innovativeness in traditional low-tech MSEs, a topic that has been little explored in least developed countries like Peru, where this kind of firms are commonly the most important employment providers.
... tended to be positive, with CGAP, the international consultative groups on micro-finance, sug... more ... tended to be positive, with CGAP, the international consultative groups on micro-finance, suggesting that the ... facing enterprises, especially for those wanting to grow above theirmicro-size. ... poor borrowers from [microfinance institutions] often do not graduate to higher and ...
Finding an efficient method for sampling micro- and small-enterprises (MSEs) for research and sta... more Finding an efficient method for sampling micro- and small-enterprises (MSEs) for research and statistical reporting purposes is a challenge in developing countries, where registries of MSEs are often nonexistent or outdated. This lack of a sampling frame creates an obstacle in finding a representative sample of MSEs. This study uses computer simulations to draw samples from a census of businesses and non-businesses in the Tshwane Municipality of South Africa, using three different sampling methods: the traditional probability sampling method, the compact segment sampling method, and the World Health Organization's Expanded Programme on Immunization (EPI) sampling method. Three mechanisms by which the methods could differ are tested, the proximity selection of respondents, the at-home selection of respondents, and the use of inaccurate probability weights. The results highlight the importance of revisits and accurate probability weights, and the lesser effect of proximity selection on the samples' statistical properties.
... small-scale agriculture, tourism, etc.; ● self-employment problems experienced by the youth, ... more ... small-scale agriculture, tourism, etc.; ● self-employment problems experienced by the youth, where the ... reference to the need to develop 'programmes to promote enterprise development,entrepreneurship and job ... The Human Resource Development Strategy for South Africa ...
Ð Micro®nance programs and institutions are increasingly important in development strategies but ... more Ð Micro®nance programs and institutions are increasingly important in development strategies but knowledge about their impacts is partial and contested. This paper reviews the methodological options for the impact assessment (IA) of micro®nance. Following a discussion of the varying objectives of IA it examines the choice of conceptual frameworks and presents three paradigms of impact assessment: the scienti®c method, the humanities tradition and participatory learning and action (PLA). Key issues and lessons in the practice of micro®nance IAs are then explored and it is argued that the central issue in IA design is how to combine dierent methodological approaches so that a``®t'' is achieved between IA objectives, program context and the constraints of IA costs, human resources and timing. The conclusion argues for a greater focus on internal impact monitoring by micro®nance institutions. Ó three anonymous reviewers for comments. Particular thanks are due to Richard Montgomery for the ideas that he has given me about impact assessment. Final revision accepted: 25 May 1999.
The relationship between the size, age and growth rate of firms is examined for a large sample of... more 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 geographically concentrated area. Micro and small firms are dominant in the industrial structure and thus their growth patterns are crucial to the economic growth of the region. The period of study is of particular interest because it allows us to evaluate the effects of various regional development policy programs on the growth and formation of firms. The data is an unbalanced panel covering the period 1993–1998. We allow for the exit and entry of firms. The growth rate is defined in terms of the number of employees, sales and assets. In the estimation of the growth rate we control for various factors characterizing the sample firms, their capital structure, performance, human capital, and local labor market conditions. Our results show that the relationship between the growth, size and age of firms is very sensitive with respect to the method of estimation, functional form and definition of growth and size.
Diffusion of innovations plays an important role for incremental change leading to sustained deve... more Diffusion of innovations plays an important role for incremental change leading to sustained development in all societies. The diffusion of an innovation is in fact determined by a stream of improvements in the performance characteristics of that innovation, its progressive modification and adaptation. The local technological capability and indigenous knowledge can contribute significantly to the process of adaptive improvements. This paper hinges briefly upon the interface between innovation and diffusion and the role of adaptive improvements to this effect in the context of promoting technologies in rural micro-industries. Observations made in the paper are based on a sample survey comprising of three phases undertaken recently on a number of small and medium industries (SMIs) covering various districts of Bangladesh. It is found that accumulated indigenous knowledge embodied in local farmers and artisans play a crucial role in innovation–diffusion interaction.
This paper explores the role that action learning might play in micro and small enterprise develo... more This paper explores the role that action learning might play in micro and small enterprise development. It is divided into two parts. The first part focuses upon the distinctive characteristics of smallness and ownership and their implication for management development processes in the owner managed firm. In particular the impact of personal values, ways of doing things and distinctive forms of learning are explored. The argument points to the emotional underpinning of the ways in which the organisation is developed and run. The challenges to action learning are then reviewed. The second part focuses upon the ‘institutional’ factors that stand in the way of effective approaches to owner manager learning and in particular how they impact on the way that knowledge is delivered and pedagogies applied by business education organisations to the small firm. It is argued that the pervasive corporatism of the approach does much to explain why owner managers are reluctant to pay for existing training and education offers. The barriers that confront action learning approaches are examined. Overall it is concluded that action learning is central to effective owner manager learning, that there are distinctive skill challenges for action learning facilitators but that there need to be major changes in institutional norms.
MicSMEs: how they are defined, how many there are and where they are located Given the need for i... more MicSMEs: how they are defined, how many there are and where they are located Given the need for information on smaller enterprises, the first question that arises is: why define economic units by size? There are at least two possible responses: i) for purely statistical purposes, and ii) for policy purposes. Apart from these reasons, however, defining economic units in this way will always be useful for This paper is part of a FUNDES project on indicators for small and medium-sized enterprises (SMEs) in Latin America. I would like to express my appreciation for the comments of Albert Berry and an ECLAC external referee and for the extensive cooperation received in the drafting of this paper from all the FUNDES units working in 10 countries on BEE (these units will henceforth be referred to as BEE units). 1 The FUNDES network covers 10 countries where the foundation provides consultancy, training, services to improve the business environment, e-business services and others. These countries are Argentina,
Faculty of Commerce-Economics Working Papers, 2003
The economic and social crisis that afflicted East Asia from mid 1997 produced the biggest setbac... more The economic and social crisis that afflicted East Asia from mid 1997 produced the biggest setback to poverty reduction in the region for several decades, as well as aggravating social vulnerabilities. There were many dimensions to this, including: falling incomes; rising absolute poverty and malnutrition; declining public services; threats to educational and health status; increased pressure on women and children; and increased crime and violence.
... Microfinance Programs Studied The three microfinance institutions (MFIs) included in this stu... more ... Microfinance Programs Studied The three microfinance institutions (MFIs) included in this study (FINCA, FOCCAS, PRIDE) differ in ways that may influence the profile of clients who join them (Barnes, Morris, & Gaile, 1998; Barnes, Gaile, & Kibombo, 2001). ... E n terp rise O n e ...
Innovation is key to technology adoption and creation, and to explaining the vast differences in ... more Innovation is key to technology adoption and creation, and to explaining the vast differences in productivity across and within countries. Despite the central role of the entrepreneur in the innovation process, data limitations have restricted standard analysis of the determinants of innovation to consideration of the role of firm characteristics. The authors develop a model of innovation that incorporates the role of both owner and firm characteristics, and use this to determine how product, process, marketing, and organizational innovations should vary with firm size and competition. They then use a new, large, representative survey from Sri Lanka to test this model and to examine whether and how owner characteristics matter for innovation. The This paper-a product of the Finance and Private Sector Team, Development Research Group-is part of a larger effort in the department to study entrepreneurship and innovation. Policy Research Working Papers are also posted on the Web at http://econ.worldbank.org. The author may be contacted at [email protected].
Most enterprises, from the smallest to the largest, need capital. Enterprise can play a crucial r... more Most enterprises, from the smallest to the largest, need capital. Enterprise can play a crucial role in alleviating poverty. In developing economies, women's role in alleviating poverty through enterprise has long been recognised, and they have been received as a client group. However, poor women lack the capital required for enterprise start-ups and although lending mechanisms exist in their economy, mainstream financial institutions are not oriented towards providing them with the funding they require. Microfinance generally refers to the provision of financial services (e.g.: savings, credit, insurance) to the poor, those who normally do not have access to formal financial institutions. Non-Governmental Organisations (NGOs) in India have promoted micro-finance through women's self-help groups. However, the different institutional forms are not value-neutral and vested interests are involved. The interests of people and those of micro-financing institutions (MFIs) sometimes compete and conflict.
This paper presents an exploratory study aimed at conceptualizing and testing a model to predict ... more This paper presents an exploratory study aimed at conceptualizing and testing a model to predict the influence of organizational and managerial factors on innovativeness in traditional micro and small enterprises (MSEs). Data was collected through in-depth interviews based on a structured survey with the owner/manager of 37 Peruvian MSEs in the furniture industry. The Partial Least Square (PLS) path analysis reveals that the organizational structure, the degree of a formal approach in the innovation processes, as well as the use of external linkages to acquire knowledge and ideas from other organizations, have a significant positive effect on firm innovativeness. By contrast, organizational culture, innovation strategy and customer involvement did not prove to be meaningful stimuli. This research contributes to increase the body of knowledge in the field of innovativeness in traditional low-tech MSEs, a topic that has been little explored in least developed countries like Peru, where this kind of firms are commonly the most important employment providers.
... tended to be positive, with CGAP, the international consultative groups on micro-finance, sug... more ... tended to be positive, with CGAP, the international consultative groups on micro-finance, suggesting that the ... facing enterprises, especially for those wanting to grow above theirmicro-size. ... poor borrowers from [microfinance institutions] often do not graduate to higher and ...
Finding an efficient method for sampling micro- and small-enterprises (MSEs) for research and sta... more Finding an efficient method for sampling micro- and small-enterprises (MSEs) for research and statistical reporting purposes is a challenge in developing countries, where registries of MSEs are often nonexistent or outdated. This lack of a sampling frame creates an obstacle in finding a representative sample of MSEs. This study uses computer simulations to draw samples from a census of businesses and non-businesses in the Tshwane Municipality of South Africa, using three different sampling methods: the traditional probability sampling method, the compact segment sampling method, and the World Health Organization's Expanded Programme on Immunization (EPI) sampling method. Three mechanisms by which the methods could differ are tested, the proximity selection of respondents, the at-home selection of respondents, and the use of inaccurate probability weights. The results highlight the importance of revisits and accurate probability weights, and the lesser effect of proximity selection on the samples' statistical properties.
... small-scale agriculture, tourism, etc.; ● self-employment problems experienced by the youth, ... more ... small-scale agriculture, tourism, etc.; ● self-employment problems experienced by the youth, where the ... reference to the need to develop 'programmes to promote enterprise development,entrepreneurship and job ... The Human Resource Development Strategy for South Africa ...
Ð Micro®nance programs and institutions are increasingly important in development strategies but ... more Ð Micro®nance programs and institutions are increasingly important in development strategies but knowledge about their impacts is partial and contested. This paper reviews the methodological options for the impact assessment (IA) of micro®nance. Following a discussion of the varying objectives of IA it examines the choice of conceptual frameworks and presents three paradigms of impact assessment: the scienti®c method, the humanities tradition and participatory learning and action (PLA). Key issues and lessons in the practice of micro®nance IAs are then explored and it is argued that the central issue in IA design is how to combine dierent methodological approaches so that a``®t'' is achieved between IA objectives, program context and the constraints of IA costs, human resources and timing. The conclusion argues for a greater focus on internal impact monitoring by micro®nance institutions. Ó three anonymous reviewers for comments. Particular thanks are due to Richard Montgomery for the ideas that he has given me about impact assessment. Final revision accepted: 25 May 1999.
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