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The Survival of Small Business Enterprise

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  • Gavin C Reid

Abstract

This paper considers three themes central to the survival of small business enterprise. Firstly, the incentive for entrepreneurship, which is discussed within a theoretical framework that draws on cooperative market games analysis, and finds a rationale for entrepreneurship in facilitating coalition formation. Secondly, the determinants of survival of a small firm, which is discussed whithin a statistical framework, providing estimates of the influence of key factors like gearing and product range on survival over a three year period. Thirdly, the political economy of enterprise stimulation, which looks at enabling institutions for fostering the inception and growth of small firms (like the Scottish Development Agency and Scottish Enterprise), considered from the standpoint of comparative institutional analysis. The treatment is informal, being based on an Inaugural Lecture, and is designed to be accesssible to the non-specialist.

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Bibliographic Info

Paper provided by Centre for Research into Industry, Enterprise, Finance and the Firm in its series CRIEFF Discussion Papers with number 9309.

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Date of creation: Oct 1993
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Handle: RePEc:san:crieff:9309

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  1. repec:att:wimass:8827 is not listed on IDEAS
  2. Binmore, Ken, 1987. "Experimental economics," European Economic Review, Elsevier, vol. 31(1-2), pages 257-264.
  3. Thomas VON UNGERN-STERNBERG, 1988. "The Flexibility to Switch between Different Products," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 8806, Université de Lausanne, Faculté des HEC, DEEP.
  4. Reid, Gavin C., 1991. "Staying in business," International Journal of Industrial Organization, Elsevier, vol. 9(4), pages 545-556, December.
  5. Hayne E. Leland and David H. Pyle., 1976. "Informational Asymmetries, Financial Structure, and Financial Intermediation," Research Program in Finance Working Papers 41, University of California at Berkeley.
  6. Jovanovic, Boyan, 1982. "Selection and the Evolution of Industry," Econometrica, Econometric Society, vol. 50(3), pages 649-70, May.
  7. Holmes, Thomas J & Schmitz, James A, Jr, 1990. "A Theory of Entrepreneurship and Its Application to the Study of Business Transfers," Journal of Political Economy, University of Chicago Press, vol. 98(2), pages 265-94, April.
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Cited by:
  1. Mazzola, Fabio & Bruni, Sergio, 2000. "The role of linkages in firm performance: evidence from southern Italy," Journal of Economic Behavior & Organization, Elsevier, vol. 43(2), pages 199-221, October.

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