The Small-Firm Sector. Defining the Small-firm Sector EU definition of SMEs –by number of...
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Transcript of The Small-Firm Sector. Defining the Small-firm Sector EU definition of SMEs –by number of...
The Small-Firm SectorThe Small-Firm Sector
Defining the Small-firm SectorDefining the Small-firm Sector
• EU definition of SMEs
– by number of employees
• micro enterprises
• small enterprises
• medium enterprises
• EU definition of SMEs
– by number of employees
• micro enterprises
• small enterprises
• medium enterprises
EU SME definitionsEU SME definitions
Defining the Small-firm SectorDefining the Small-firm Sector
• EU definition of SMEs
– by number of employees
• micro enterprises
• small enterprises
• medium enterprises
– use of EU definitions in the UK
• EU definition of SMEs
– by number of employees
• micro enterprises
• small enterprises
• medium enterprises
– use of EU definitions in the UK
Defining the Small-firm SectorDefining the Small-firm Sector
• EU definition of SMEs
– by number of employees
• micro enterprises
• small enterprises
• medium enterprises
– use of EU definitions in the UK
• Size of the small-firm sector in the UK
• EU definition of SMEs
– by number of employees
• micro enterprises
• small enterprises
• medium enterprises
– use of EU definitions in the UK
• Size of the small-firm sector in the UK
Number of UK businesses, employment andturnover by size of enterprise (2002)
Number of UK businesses, employment andturnover by size of enterprise (2002)
Number of UK businesses, employment andturnover by size of enterprise (2002)
Number of UK businesses, employment andturnover by size of enterprise (2002)
Number of UK businesses, employment andturnover by size of enterprise (2002)
Number of UK businesses, employment andturnover by size of enterprise (2002)
Number of UK businesses, employment andturnover by size of enterprise (2002)
Number of UK businesses, employment andturnover by size of enterprise (2002)
Number of UK businesses, employment andturnover by size of enterprise (2002)
Number of UK businesses, employment andturnover by size of enterprise (2002)
SME share of UK businesses, employment andturnover by industry (2002)
SME share of UK businesses, employment andturnover by industry (2002)
SME share of UK businesses, employment andturnover by industry (2002)
SME share of UK businesses, employment andturnover by industry (2002)
SME share of UK businesses, employment andturnover by industry (2002)
SME share of UK businesses, employment andturnover by industry (2002)
SME share of UK businesses, employment andturnover by industry (2002)
SME share of UK businesses, employment andturnover by industry (2002)
The Small-firm Sector in the UKThe Small-firm Sector in the UK
• Changes over time
– growth in the service sector
– growth in niche markets
– new working practices
• flexible labour markets
• subcontracting
– growth in self-employment as an answer to unemployment
• Changes over time
– growth in the service sector
– growth in niche markets
– new working practices
• flexible labour markets
• subcontracting
– growth in self-employment as an answer to unemployment
0
10
20
30
40
50
1920 1930 1940 1950 1960 1970 1980 1990 2000
% The importance of small firms in the UKThe importance of small firms in the UK
Employment in manufacturing enterprises with fewer than 200employees as % of total employment in manufacturing enterprises
0
10
20
30
40
50
1920 1930 1940 1950 1960 1970 1980 1990 2000
%
Employment in manufacturing enterprises with fewer than 200employees as % of total employment in manufacturing enterprises
The importance of small firms in the UKThe importance of small firms in the UK
0
10
20
30
40
50
1920 1930 1940 1950 1960 1970 1980 1990 2000
%
Employment in manufacturing enterprises with fewer than 200employees as % of total employment in manufacturing enterprises
Self employed as % of UK labour force
The importance of small firms in the UKThe importance of small firms in the UK
0
10
20
30
40
50
1920 1930 1940 1950 1960 1970 1980 1990 2000
%
Employment in manufacturing enterprises with fewer than 200employees as % of total employment in manufacturing enterprises
Self employed as % of UK labour force
The importance of small firms in the UKThe importance of small firms in the UK
The Small-firm Sector in the UKThe Small-firm Sector in the UK
• Changes over time– growth in the service sector
– growth in niche markets
– new working practices• flexible labour markets
• subcontracting
– growth in self-employment as an answer to unemployment
– role of government
• Changes over time– growth in the service sector
– growth in niche markets
– new working practices• flexible labour markets
• subcontracting
– growth in self-employment as an answer to unemployment
– role of government
The Small-firm Sector in the UKThe Small-firm Sector in the UK
• Changes over time– growth in the service sector
– growth in niche markets
– new working practices• flexible labour markets
• subcontracting
– growth in self-employment as an answer to unemployment
– role of government
• International comparisons
• Changes over time– growth in the service sector
– growth in niche markets
– new working practices• flexible labour markets
• subcontracting
– growth in self-employment as an answer to unemployment
– role of government
• International comparisons
Survival, Growth and Failure of Small FirmsSurvival, Growth and Failure of Small Firms
• Competitive advantage and small firms– flexibility
– quality of service
– production efficiency and low overheads
– product development and innovation
• Problems facing small businesses– selling and marketing
– funding R&D
– management skills
– less ability to gain economies of scale
• Competitive advantage and small firms– flexibility
– quality of service
– production efficiency and low overheads
– product development and innovation
• Problems facing small businesses– selling and marketing
– funding R&D
– management skills
– less ability to gain economies of scale
• The growth of small businesses– the process of growth
• The growth of small businesses– the process of growth
Survival, Growth and Failure of Small FirmsSurvival, Growth and Failure of Small Firms
Management role and style in thefive stages of a small business
Management role and style in thefive stages of a small business
Management role and style in thefive stages of a small business
Management role and style in thefive stages of a small business
Management role and style in thefive stages of a small business
Management role and style in thefive stages of a small business
Management role and style in thefive stages of a small business
Management role and style in thefive stages of a small business
Management role and style in thefive stages of a small business
Management role and style in thefive stages of a small business
Management role and style in thefive stages of a small business
Management role and style in thefive stages of a small business
Survival, Growth and Failure of Small FirmsSurvival, Growth and Failure of Small Firms
• The growth of small businesses (cont.)– the entrepreneur
• motivation and desire to succeed
• educational attainment
• management experience and business knowledge
– the firm• the age of the business
• the sector of the economy
• legal forms
• location
• The growth of small businesses (cont.)– the entrepreneur
• motivation and desire to succeed
• educational attainment
• management experience and business knowledge
– the firm• the age of the business
• the sector of the economy
• legal forms
• location
Survival, Growth and Failure of Small FirmsSurvival, Growth and Failure of Small Firms
• The growth of small businesses (cont.)
– strategy
• workforce and management training
• use of external finance
• product innovation
• export markets
• use of professional managers
– conditions for success of small businesses
• The growth of small businesses (cont.)
– strategy
• workforce and management training
• use of external finance
• product innovation
• export markets
• use of professional managers
– conditions for success of small businesses
Government Assistance to the Small FirmGovernment Assistance to the Small Firm
• Small-firm policy in the UK
– small business start-up
• types of support
• financial assistance
– small business growth
• financial assistance
• corporate venturing
• national 'business angels'
– training programmes
• Small-firm policy in the UK
– small business start-up
• types of support
• financial assistance
– small business growth
• financial assistance
• corporate venturing
• national 'business angels'
– training programmes
Government Assistance to the Small FirmGovernment Assistance to the Small Firm
• Small-firm policy in the EU
– historical background
– SME Action Programme
• Small-firm policy in the EU
– historical background
– SME Action Programme
EU SME Action ProgrammeEU SME Action Programme
Government Assistance to the Small FirmGovernment Assistance to the Small Firm
• Small-firm policy in the EU (cont.)
– policy initiatives
– financial instruments
• Structural Fund
• European Investment Bank
– research and technology development
– vocational training programmes
– other programmes
• Small-firm policy in the EU (cont.)
– policy initiatives
– financial instruments
• Structural Fund
• European Investment Bank
– research and technology development
– vocational training programmes
– other programmes