Adopting a formal approach to modelling small business performance has major advantages over the more typical case-study based methodology. In particular, formal approaches allow the relative importance of individual deteminants of business performance to be assessed and lead to quantifiable predictions. Recent studies have adopted alternative structural and reduced form approaches to modelling small business performance and in this paper these approaches are compared using a common conceptual framework and dataset.
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Paper provided by Economic Research Institute of Northern Ireland in its series Working Papers NIERC. with number
34.