Small businesses in a system of measures aimed at recovering the trajectory of economic growth

The article has substantiated an approach to small businesses as a factor that potentially promotes the recovery of economic growth. Consequences of ineffective government policy towards small business have been analyzed, as well as provisions of the “Strategy for the Development of Small and Medium-Sized Business in the Russian Federation until 2030.” Measures have been proposed that are aimed at stabilizing the operating conditions of small businesses and restoring the entrepreneurs’ confidence in the state.     

Women's Enterprise and Business Development Lessons from targeted women's programmes in Glasgow

This paper contributes to the debate on gender and small business, examining two women's enterprise policies and three initiatives developed in Glasgow in the mid 1990s. Responding to concerns about the low rate of women's business start-up and growth in Glasgow, local authorities and the Local Enterprise Company developed a number of policy recommendations. Subsequent implementation by local business development agencies was piecemeal and small scale, due in part to the pressures from output related funding, and to the funders' priority for businesses with high growth potential. The most significant women's enterprise initiative has been the establishment of the Wellpark Enterprise Centre, providing a targeted range of integrated services for women's business start-up and growth.     

Mobile Payment and Informal Business: Evidence from China's Household Panel Data

This paper uses household panel data to explore the impact of mobile payments on China's household business activity. Using a difference‐in‐difference fixed effect specification, I find that mobile payment users are more likely to operate small‐scale and self‐employed informal businesses. The impact of using mobile payment primarily derives from the transition of agricultural families to business owners and the development of informal businesses. The paper illustrates an associated increase in employment and income for family members, with more pronounced effects on low‐income and rural households. It also provides prima facie evidence of the increase in fund transfers, which is important for risk sharing that informal businesses may encounter.     

Manufacturing enterprises and marketing planning in a mining area of the North West Province,South Africa: lessons for local business support centres

This paper examines the extent to which manufacturing SMMEs (small, medium and micro enterprises) see marketing planning as important for their businesses in the area of the North West Province known as PKOSH (Potchefstroom, Klerksdorp, Orkney, Stilfontein and Hartbeesfontein). It identifies lessons for local business support centres, based on a case study of manufacturing businesses in this region. The literature suggests that appropriate marketing planning will increase profitability, but it was found that most manufacturing industries in this area do not plan their marketing appropriately. This is largely because of their close relationship with and dependence on the mining industry, which is at present extremely volatile, with mine closures imminent. Against this background, the authors argue that local business support centres should have a much better understanding of local business trends and should provide information to help businesses open up markets beyond their immediate environment.     

Is There a Local Business Community? Explaining the non-participation of small business in local economic development

This article reports a study of the attitudes of small business owners to the localities in which their businesses are located and local economic development. The views of the owners contrasted strongly with those of representatives of local business bodies and economic agencies. The findings indicate small business owners tend to be detached from the locality and from local economic initiatives. This appears to be due to historical trends that have reduced the role of small business in local political and economic processes and the logic(s) of business practice within the sectors analysed. This has occurred despite trends soliciting more private sector involvement in local economic initiatives.     

The informal economy at times of COVID-19 pandemic

We provide a first view of vulnerable informal economy after the blows from COVID-19, using transaction-level business data of around 80 million offline micro businesses (OMBs) owners from the largest Fintech company in China and employing machine learning method for causal inference. We find that the OMBs activities in China experienced an immediate and dramatic drop of 50% during the trough. The businesses had rebounded to around 80% of where they should be seven weeks after the COVID-19 outbreak, but had remained at this level until the end of our time window. We find a larger disruption to the OMBs in urban areas, the female merchants and the merchants who were not grown up in the places where they conducted businesses. We discuss the implications for policy support to the most vulnerable, and highlight the importance to take full advantage of digital development to follow up the informal economy.     

Delivering quality accommodation for small businesses in London despite market difficulties

Public policy on the subject of small business support generally concentrates on tackling market failures in delivering finance, innovation, technical development, skills and entrepreneurship. However, in growing city regions such as London, the difficulty in obtaining good quality fit-for-purpose accommodation can be an important factor inhibiting the growth of otherwise successful business. The rate of business formation is very high in London, but paradoxically, the very vibrancy of the economy creates a real estate market that can be hostile to the needs of small businesses, particularly those which achieve rapid growth. This article will consider the factors that cause this situation and will then outline some practical examples of how they can be overcome by smart public sector intervention.     

The link between entrepreneurship and informal investment: An international comparison

This study explores the link between entrepreneurship and informal investment. Using Global Entrepreneurship Monitor data, we examine what types of individuals invest in new businesses. The results reveal that individuals who engage in entrepreneurial activity are, on average, three times more likely to invest in new businesses than those who do not. We also find that individuals with entrepreneurial networks are more likely to invest in new businesses. Moreover, we present estimation results for the odds ratio of business ownership/management and informal investment, as well as of entrepreneurial networks and informal investment, in each country. We find that the link between entrepreneurship and informal investment differs across countries. Specifically, while the proportion of individuals who start businesses or engage in informal investment in Japan is lower than in other countries, the relationship between entrepreneurial propensity and informal investment in Japan is the greatest among 30 Organisation for Economic Co-operation and Development countries, suggesting the presence of small-world phenomena in entrepreneurship in Japan.     

Informal retailing through home-based micro-enterprises: The role of spaza shops

The informal trade sector constitutes an important part of the South African economy, with estimated sales of R32 billion in 2002. Its emergence is largely attributed to the divergence between the growth in population, especially the urban population, and employment growth in the formal economy. Growth of informal enterprises, especially in the retail sector, is also thriving on the demand of less affluent households, whose household needs for unsophisticated and affordable products are aptly supplied by the informal sector. The aim of this article is to focus on one of the prominent sub-sectors of informal retailing, namely spaza or tuck shops, defined as small retail businesses which operate from a residential stand or home. Particular attention is paid to the size, role and characteristics of spaza trade in South Africa, which is estimated to account for nearly 3 per cent of South Africa's retail trade.     

Achievement motivation and small business success in Transkei

The success of small firms is crucial for the creation and expansion of employment opportunities. Success in business often relies on entrepreneurial skills and attributes. This article examines the effect of one of these attributes, need achievement (n‐Ach), on entrepreneurial success as measured by asset, sales and labour growth. N‐Ach was found to be a significant predictor of success for indigenous entrepreneurs in Transkei Subjects with high and above‐average n‐Ach level tended to engage in more sophisticated business ventures than their counterparts low on n‐Ach. Male entrepreneurs were found to have a higher mean score on n‐Ach than their female counterparts. A one‐unit enhancement in n‐Ach level of the entrepreneur could induce a more than proportionate rise in the labour growth rate of the small entrepreneurial firm.     

Breaching the barriers: The segmented business and innovation system of handicraft exports in Cape Town

Twenty years after apartheid was formally abolished, black handicraft exporters in Cape Town still innovate significantly less than their white counterparts. This study explains these differences based on the segmentation of business and innovation systems, a novel approach that aims to contribute to a deeper understanding of path dependency in South Africa. The study concludes that the business system is segmented between formal and informal firms and that such segmentation is correlated with race. Despite path dependency, a group of black entrepreneurs has managed to breach the barriers, owing to the ongoing support of an intermediate organisation, intense networking and risk-taking.     

Small firms and local economic development in South London

A growing body of literature has identified a number of potential constraints on small firm growth. Arguably, the severity of these constraints is closely related to the differing fortunes of industries and firms and the extent of localised external economies or diseconomies. This paper looks at the constraints facing manufacturing and business service firms in a large urban area. The paper draws on findings from a survey of small firms in Croydon. Data from the survey reveal some differences between small manufacturing and service firms in their experience of the urban environment. Physical constraints on expansion and labour shortages appear to be hindering small manufacturing firms in Croydon. Deficiencies in specific niches of the local business service sector may be preventing small business service firms from complementing and enhancing their internal capabilities. The problems facing small firms in Croydon and the sorts of local policy initiatives being developed are likely to be applicable to other large urban areas.     

Mixing Family Business with Politics in Thailand*

This paper uses newly compiled data on Thai family businesses and their direct participation in politics to examine whether the political participation of family business yields private economic payoff. The paper finds that the political participa‐tion of family members is positively associated with the profitability of family businesses. Furthermore, this ‘political benefit’ is found to be particularly large when firms are connected to cabinet members. These results support the crony capitalism view that powerful business groups in Thailand have an incentive to directly hold influential public offices to influence economic policy in their favor.     

Impact of Credit Accessibility on the Earnings of Self-employed Businesses in India

The study assesses the impact of credit accessibility on the earnings of self-employed small businesses in India. Using unincorporated non-agricultural enterprises survey data provided by National Survey Sample Organisation (NSSO) on the Indian economy for the year 2015-16, the paper shows that access to credit augments earnings of self-employed businesses. The paper also separately shows the impact of credit availed from formal and informal lending agencies on self-employment earnings. Interestingly, we observe that both these lending agencies have a positive impact, even though the terms and conditions are not favourable in the informal market. Based on our findings we suggest for creation of informal-formal credit linkage programme akin to that of SHG bank linkage programme in which enterprises that do not possess accessibility to formal sources due to absence of collateral can also get formal credits through informal lenders at favourable terms and conditions.     

FACTORS THAT AFFECT THE LONG‐TERM SURVIVAL OF MICRO,SMALL AND MEDIUM ENTERPRISES IN ETHIOPIA

There is an increasing recognition of the potential importance of micro, small and medium enterprises (MSMEs) for employment, income and poverty reduction in Ethiopia. Although the MSME sector contributes significantly to the national economy, the high failure rate among well established small businesses and enterprises is a matter of major concern. A random sample of 500 small businesses and enterprises selected from five major cities in Ethiopia were followed up for 6 years in order to assess the impact of influential factors that affect the long‐term survival and viability of small enterprises. Hazard ratios estimated from the Cox Proportional Hazards Model were used to quantify the impact of key predictors of survival. Businesses that ceased operation were characterised by inadequate finance (61%), low level of education (55%), poor managerial skills (54%), shortage of technical skills (49%), and inability to convert part of their profit to investment (46%). The study shows that participation in social capital and networking (iqqub schemes) was critically helpful for long‐term survival. Businesses that did not participate in iqqub schemes regularly were found to be 3.25 times more likely to fail in comparison with businesses that did. Results of the study have implications that could be used for developing policy initiatives that are aimed at fostering long‐term growth in small businesses and enterprises.     

An assessment of survivalist enterprises in the Capricorn District Municipality

This study aims to reconcile diverging views on public-sector support for survivalist enterprises. The study assessed all 566 survivalist enterprises in the records of the Capricorn District Municipality of Limpopo Province, South Africa. Data on variables such as demographic characteristics and the types of items traded were collected through questionnaires and analysed by means of cross-tabulations in the SPSS software program. The study found that most survivalist entrepreneurs had obtained at least a secondary education. Women ran the majority of these enterprises, and youth participation was also substantial. The study recommended providing these entrepreneurs with training in technical and financial management skills, but employing differentiated training strategies for urban and rural enterprises, as well as specifically targeting young entrepreneurs. Training should be conducted at a time that suits the entrepreneurs, for instance when business activity is lower.     

家族企业创业元老的契约化治理机制——一个基于人力资本风险投资的视角

文章利用人力资本风险投资理论,对家族企业创业元老的契约化治理问题进行了深入分析,探讨了家族企业创业元老的人力资本投资风险,并根据物质资本资产定价模型,建立了一个基于风险的创业元老人力资本定价模型,模型表明：在家族企业成长期,家族企业家和创业元老人力资本所有者之间需要建立基于能力的非人格化契约,实现由感情定价向市场定价的转变。但要想实现新契约的顺利达成和执行,对创业元老人力资本投资的风险补偿是必不可少的。     

Impact of the Emerging Financial Holding Company Model on Small Business Borrowers' Financial Welfare: Contemporary Evidence from Nigeria Based on the Monti‐Klein Approach

This study exploits the adequacy of the Monti‐Klein model to analyse the banking firms' lending behaviour and uses the geometric lag analytic model to detect the lifespan of bank conglomeration impacts on small business financial welfare. We find that, although the impact of emerging conglomerate banks on lending to small businesses is significantly negative (δ = ?0.6897; p < 0.01), the effect reverses to a pre‐conglomerate positive status within one year. Hence, bank conglomeration does not negatively affect the financial welfare of small business borrowers in the long run. Contrary to the widespread belief and fear, the negative effects are not permanent. Large banks are feared to have no time for mid‐sized businesses. We find, however, that mere increases in size, as may be caused by economic or internal growth, do not pose a threat to small businesses. Large‐sized banking firms positively and significantly correlate with small and predictable risks (δ = 1.7935; p < 0.01). Hence, contrary to what regulators fear, there is no real issue surrounding the idea that building diversifying banks will influence small business loans negatively. What matters is the means through which large banks emerge. Therefore, regulators ought to exercise caution so that they do not discourage their emergence.     

Agricultural growth multipliers for two communal areas of KwaZulu-Natal

Expenditure data were collected from 99 households in two rural areas of KwaZulu-Natal. District and wealth group expenditure analyses suggest a less-than-proportional increase in the demand for tradable farm commodities, and a more-than-proportional increase in the demand for non-tradable farm commodities following a 1 per cent increase in household expenditure. Expenditure on non-farm tradables (imported consumer durables) showed the greatest potential for demand growth, with expenditure elasticities ranging from 1,75 to 2,59. An increase of R1,00 in household income is predicted to add an additional 28 cents (multiplier of 1,28) to the local economy. The study estimates relatively weak growth linkages. However, even relatively weak growth linkages could lead to much needed new income and employment opportunities in the local farm and non-farm sectors if the constraints limiting agriculture, and hence broad-based growth in rural incomes, are alleviated. Agriculture-led growth in South Africa requires public investment in both physical and institutional infrastructure to reduce transaction costs and risks in all markets, thus encouraging greater participation by local entrepreneurs and private sector investors. In addition, the roles, functions and services offered by extension agents should be extended to promote collective marketing, facilitate land rental contracts and provide training, technical and business support for farm and non-farm entrepreneurs.