Flexible technology and firm size

This paper provides the first empirical examination of the relationship between the application of flexible technologies and the firm-size distribution. In particular, we test the hypothesis that implementation of flexible technologies has tended to promote small firms more than large firms. Based on a sample of 36 engineering industries and using two distinct time periods between 1976 and 1986 and two different measures of what constitutes a small firm, we find that the application of certain flexible technologies, such as numerically controlled machines, has led to an increased presence of small firms, while the use of other flexible technologies, such as programmable robots, is associated with a decreased presence of small firms over time.     

Entrepreneurial strategy and the presence of small firms

A model is presented hypothesizing that the level of small-firm presence in any given industry emanates from the exogenous stock of entrepreneurial talent, a stochastic element of managerial and entrepreneurial talent, entry deterrence, and the entrepreneurial strategy deployed by small firms. Using data newly released by the U.S. Small Business Administration, the hypothesis is tested for a sample of 247 four-digit standard industrial classification industries, spanning the entire spectrum of firm sizes. We find that, consistently for all the measures of small-firm size and for all of the time periods used, the existence of entry deterrence and reliance upon innovative strategy explains a significant proportion of the variation in the presence of small firms.     

Introduction to Institutions,Entrepreneurship and Firm Growth: The Case of Sweden

Small Business Economics -