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The survival of small companies in the capitalist development

Author

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  • Oswaldo Guerra
  • Francisco Teixeira

Abstract

The role of small companies in capitalist development has raised, throughout the years, the analytical curiosity of economists and other social scientists. In spite of the enormous disadvantages that they possess in competing with big capital, there are innumerable reasons for their survival. The empirical evidence is clear in attesting the importance of small companies in terms of GDP share and job creation and, at the same time, their difficulties for surviving. This paper presents a theoretical revision, departing from Marx, Marshall, Steindl and Schumpeter up to some contemporary authors, concerning the role of the small companies in capitalist development, emphasizing the reasons and the difficulties for its survival. JEL Classification: O10.

Suggested Citation

  • Oswaldo Guerra & Francisco Teixeira, 2010. "The survival of small companies in the capitalist development," Brazilian Journal of Political Economy, Center of Political Economy, vol. 30(1), pages 124-139.
    • Handle: RePEc:ekm:repojs:v:30:y:2010:i:1:p:124-139:id:434
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    More about this item

    Keywords

    small companies; capitalism; competitiveness;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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