This study examines the main drivers for the exit choice of small firm owners. Only recently studies have begun to compare the exits of mature firms. Previous studies concentrated on start-ups, primarily trying to explain survival. Exit choice as used in this study differentiates between liquidation vs. sale of the firm. Predictions are drawn from the cognitive biases in financial markets. Hypotheses propose that key drivers for exit choice vary on firm performance (well vs. poorly performing firms). Hypotheses are tested on a set of 157 small firm entrepreneurs, the majority of which are micro firms (0-9 employees). Results from binominal logistic regressions show support for the predictions: in well performing firms human capital or the characteristics of the entrepreneur (acquisition experience and years of ownership) prevail as key drivers, whereas in poorly performing firms the firm characteristics (dependency on owner and dependency on (few) customers) predict exit choice. These conclusions are made with caution, since interaction between firm performance and human capital is not significant.
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Creative SMEs are heavily focusing on the creating process designing new products and services. Consequently, their managers tend to loose contact with crucial management issues. Especially their knowledge of the financial aspects of their business can be so limited that they fail to connect with the financial viability of their business, which can lead to serious business problems. This paper draws on a number of studies that examine the role of outsiders -contracted professional service providers- in relation to business success of SMEs. In the light of the potential growth of Flemish creative SMEs on international markets the question can be raised as to what extent outsiders, and more specifically financial service providers like accountants and banks, contribute to the export success of these firms. In this paper therefore the role played by accountants and banks was explored to solve export-related questions by small furniture designers in Flanders, Belgium. Export can be considered as the most successful growth and therefore raises interesting management issues for creative SMEs. Little is known about the content and intensity of services of accountants and bank employees in relation to export-related questions of owner-managers of small creative firms. In order to examine the fit between supply and demand the focus is on outsider contribution during six phases of export.
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Recently Leroy et al. (2008) tested if the Theory of Planned Behavior (TPB) predicts exit behavior of entrepreneurs: liquidation or transfer. He added the purchasers view to the TPB: firm viability and intangible assets. We retested Leroy et al. hypotheses on a more refined dataset of 136 firms in another country. Our study confirms the finding of Leroy et al.. We find though that the firm’s viability, the intangible assets and the client base are better predictor than intentions from the TPB.
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Construction industries in New Zealand and abroad have a low track record for successful sustainable innovations. This often has a negative impact on private and government spending, and on quality, society and the environment. This paper posits that the construction industry needs step-change (i.e. architectural, system, radical, modular) environmental technical innovations to make drastic improvements.Often entrepreneurial or small to medium-sized firms at the beginning of supply chains or from other industries will introduce such innovations. These firms will use the innovation capacity of suppliers and of their own organisations to transform and commercialise such innovations into the industry. However, after an extensive literature review it remains unclear how innovative New Zealand firms procure environmental step-change technical innovations for the construction industry.The research focuses on procurement activities within such firms who supply the New Zealand construction industry. These procurement activities interact with (internal and external) innovation activities for an optimal firm performance (in economic and environmental terms) and are affected by clusters of internal and external variables.The heart of the research consists of two rounds of case studies alternating with two rounds of collaborative focus studies. The research focus is on New Zealand although part of this study will be replicated in the Netherlands. It is part of a doctoral project.
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This paper explores if there is a relation between governance boards in small and medium sized family firms and performance indicators of the firm. A governance board can be either a supervisory or an advisory board, this in line with the two tier governance structure that is used in the Netherlands. The resource based view is used to discuss the possible valuable resources of family SMEs and the way governance boards can influence these resources. Three functions of boards are distinguished: monitoring, resource and strategy. Especially the last two could be valuable for family SMEs. Hypotheses were tested on a sample of 370 Dutch family SMEs. Our results show that governance boards effects the existence of written strategic plans and the expected marketability of the firm. The data did not confirm a relation between a governance boards and expected short term sales growth.
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The increased importance attached by policy-makers to the anticipated developmental effects of tourism in developing countries has been insufficiently examined by academic researchers, particularly in the context of the contribution of small firms in urban areas. This deficiency is addressed by providing a review of existing research followed by an analysis of interviews with 90 tourism business located within and outside the townships of Langa and Imizamo Yethu, Cape Town, South Africa. The findings reveal tensions between the different actors involved in township tourism. While the involvement of small, locally owned, businesses is beneficial, it is limited by conflicts of interest, lack of trust, limited social networks and little attachment to the township locality. The discussion highlights the complexity of tourism's role in economic development, which has significant implications for local policy-makers.
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This paper analyzes connectivity and efficiency of a SME network across two industries. These characteristics are likely to be different for networks of various industries. The concept of 'small worlds' is used to judge overall network efficiency. The actual network can be classified as one in which a small world is present. Visualization of the results shows a single core group in the network. It was found that non-profit as well as science actors were overrepresented in the core of the field.
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Traditionally, the construction industry in New Zealand and in other countries has seen a low productivity and a low track record for successful innovations (Fairweather, 2010). The industry also lags in sustainability (e.g. Nemry, 2008) when seen from a broader or lifecycle perspective. This has a negative impact on private and government spending, on quality and health/wellbeing, and on the environment.This paper posits that the construction industry needs non-incremental (disruptive or discontinuous, i.e. modular, architectural, system or radical) sustainable technology innovations to make drastic improvements in sustainability. Such innovations are often procured (acquired) and (co-) developed by small entrepreneurial firms thus introducing such innovations into the construction and building industry. However it is unclear exactly how entrepreneurial small firms procure non-incremental sustainable technology innovations.
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Traditionally construction industries in New Zealand and abroad have a low track record for successful sustainable innovations. This has a negative impact on private and government spending, and on quality, society and the environment. This conceptual paper posits that the construction industry needs non-incremental (i.e. architectural, system, radical, modular) sustainable technology innovations to make drastic improvements. Such innovations often come from entrepreneurial (small) firms from other industries or at the beginning of supply chains and must be procured and adopted further into such chains. However, after an extensive literature review it remains unclear how entrepreneurial firms procure non-incremental sustainable technology innovations for the construction industry. The paper focuses on procurement activities of entrepreneurial firms in the New Zealand context. These activities interact with (internal and external) innovation activities for an optimal firm performance. They are affected by clusters of internal and external variables.The paper discusses extant literature, a conceptual framework, main propositions, research aims and the choice for a focus group method. It is part of a doctoral project.Paper, presented at ACERE 2015 in Adelaide Australia.
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Why is it that we know and still act as if we do not know? SMEs are considered engines of job creation and therefore growth and generation of income but is it really true that the solo self-employed and micro entrepreneurs will become small or medium entrepreneurs, e.g. graduate? We knew in the 80’s that this assumption needed to be looked at critically. Research revealed that graduation hardly existed. Practitioners in MSME support and development programmes entertain few illusions about their programmes actually leading to graduation, while NGO and Government policy officers, from behind their desks, often presume that graduation occurs frequently. Actual graduation rates and the extent to which they can be attributed to interventions remain an unresolved and important issue. After more than three decades it is justified to the question whether it is still true that graduation hardly exists? If that is the case one needs to take a critical look into prevailing policies and programs in support of the SME sector.
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