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Financing the Micro-Scale Enterprise: Rural Craft Producers in Scotland, 1840–1914

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  • Young, Craig

Abstract

The micro-scale businesses of independent craft producers have received little attention from historians. This article examines the links between the financing and use of capital by these businesses, and the ambiguous social position of the petit bourgeois business owners. A quantitative examination of the relative importance of the various sources of finance for these firms is assessed in the context of the generally accepted picture of financing for British industry, revealing differences in the pattern of funding for micro-scale enterprises. The ambiguous social relationships between the micro-scale business owners and the larger bourgeoisie, and with the working class, are partly explained by the underlying economic relationships. In particular the supply of trade credit by larger firms, and the use of credit and infrequent wage payments in their relationships with the working class, are identified as important elements.

Suggested Citation

  • Young, Craig, 1995. "Financing the Micro-Scale Enterprise: Rural Craft Producers in Scotland, 1840–1914," Business History Review, Cambridge University Press, vol. 69(3), pages 398-421, October.
    • Handle: RePEc:cup:buhirw:v:69:y:1995:i:03:p:398-421_07
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    Cited by:

    1. Falkinger, Josef & Grossmann, Volker, 2013. "Oligarchic land ownership, entrepreneurship, and economic development," Journal of Development Economics, Elsevier, vol. 101(C), pages 206-215.
    2. Maitreesh Ghatak & Massimo Morelli & Tomas Sjöström, 2001. "Occupational Choice and Dynamic Incentives," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 68(4), pages 781-810.

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