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Small Busingess Service Firms and the 1990s Recession in the United Kingdom

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  • John R. Bryson

Abstract

During the 1990s recession, the UK experienced a dramatic growth in employment in information-intensive business firms. This paper explores this growth with reference to small management consultancy and market research firms. Business service firms continued to be established and to grow during the recession because of three related attributes: professional expertise, an existing reputation and a network of client contacts. These attributes are related to the theoretical work of Granovetter (1973; 1982; 1985) who argues that "weak ties" operate to connect different groups of people together. The implications of these attributes for local economic development are considered. Success for all companies at the level of the local economy will be partially dependent on efficient and effective use of available business service expertise. The three attributes make it impossible to develop successful mechanisms to encourage the formation of business service companies in areas with underdeveloped service infrastructure. Mechanisms, however, may be developed at the local level to encourage the establishment of “weak ties†between local companies and regional and national providers of business service expertise.

Suggested Citation

  • John R. Bryson, 1996. "Small Busingess Service Firms and the 1990s Recession in the United Kingdom," Local Economy, London South Bank University, vol. 11(3), pages 221-236, November.
    • Handle: RePEc:sae:loceco:v:11:y:1996:i:3:p:221-236
    DOI: 10.1080/02690949608726334
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    References listed on IDEAS

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    1. Mike Bresnen & Carolyn Fowler, 1994. "The Organizational Correlates And Consequences Of Subcontracting: Evidence From A Survey Of South Wales Businesses," Journal of Management Studies, Wiley Blackwell, vol. 31(6), pages 847-864, November.
    2. S P Pinch, 1989. "The Restructuring Thesis and the Study of Public Services," Environment and Planning A, , vol. 21(7), pages 905-926, July.
    3. William P. Kennedy & Peter L. Payne, 1976. "Directions for Future Research," Palgrave Macmillan Books, in: Leslie Hannah (ed.), Management Strategy and Business Development, chapter 12, pages 237-258, Palgrave Macmillan.
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    Cited by:

    1. J R Bryson & P W Daniels, 1998. "Business Link, Strong Ties, and the Walls of Silence: Small and Medium-Sized Enterprises and External Business-Service Expertise," Environment and Planning C, , vol. 16(3), pages 265-280, June.
    2. Dorothea Kossyva & Katerina Sarri & Nikolaos Georgopoulos, 2014. "Co-opetition: a Business Strategy for Smes in Times of Economic Crisis," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 12(1), pages 89-106.

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