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Are Small Firms Really Sub-Optimal?: Compensating Factor Differentials in Small Dutch Manufacturing Firms

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Author Info

  • Audretsch, D.B.
  • van Leeuwen, G.
  • Menkveld, B.
  • Thurik, R.

Abstract

The advent of a growing share of small firms in modern economies raises some intriguing questions. The most intriguing question undoubtedly is why so many smaller firms, which have traditionally been classified as sub-optimal scale firms, can exist. The authors suggest that, through pursuing a strategy of copmpensating factor differentials, that is by remunerating and deploying factors of production differently than their larger counterparts, small firms are able to compensate for inherent-siza cost disadvantages.

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Bibliographic Info

Paper provided by NEUHUYS - RESEARCH INSTITUTE FOR SMALL AND MEDIUM in its series Papers with number 9902/e.

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Length: 47 pages
Date of creation: 1999
Date of revision:
Handle: RePEc:fth:miklrr:9902/e

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Postal: RESEARCH INSTITUTE FOR SMALL AND MEDIUM-SIZED BUSINESS IN THE NETHERLANDS, NEUHUYS.

Related research

Keywords: SIZE OF ENTERPRISE ; MANUFACTURES ; EFFICIENCY;

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Cited by:
  1. Bechmann, Sebastian & Dahms, Vera & Fischer, Agnes & Frei, Marek & Leber, Ute & Möller, Iris, 2011. "Beschäftigung, Arbeit und Unternehmertum in deutschen Kleinbetrieben : Ergebnisse aus dem IAB-Betriebspanel 2010," IAB-Forschungsbericht 201107, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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