Psychological resilience and business survival chances: A study of small firms in the USA during COVID-19

2022 ◽  
Vol 142 ◽  
pp. 277-286
Author(s):  
Malvika Chhatwani ◽  
Sushanta Kumar Mishra ◽  
Arup Varma ◽  
Himanshu Rai
Keyword(s):  
Small Firms ◽  
Psychological Resilience ◽  
Business Survival ◽  
The Usa

How does the estate tax affect the number of firms?

2014 ◽  
Vol 3 (1) ◽  
pp. 96-117 ◽  
Author(s):  
Pavel A. Yakovlev ◽  
Antony Davies
Keyword(s):  
Small Firms ◽  
State Level ◽  
Small Business Owners ◽  
Tax Burden ◽  
Estate Tax ◽  
Content Type ◽  
The Usa ◽  
The Rich ◽  
The Impact ◽  
Number Of Firms

Purpose – The purpose of this paper is to estimate the effect of the combined (Federal and state) estate, inheritance, and gift (EIG) tax burden per decedent on the number of firms in the USA. Design/methodology/approach – Estimates are based on a longitudinal panel of 50 American states from 1988 to 2006. Findings – The paper finds that the growth in the EIG tax burden per decedent significantly reduces the growth in the number of firms, especially small firms. The higher dissolution rate among small firms can be attributed to the asymmetric liquidity effect, which limits the ability of small business owners to raise the funds needed to pay the estate tax without liquidating their estates. Practical implications – The estimates suggest that the reductions in EIG taxes, brought about by the passage of 2001 EGTRRA, have lead to a higher growth in the number of firms, ceteris paribus. Social implications – As of this writing, the future of the Federal estate tax looks uncertain. Policymakers should note that the estate tax lowers competition and economic growth, which hurts both the poor and the rich. Originality/value – This study is the first to examine the impact of the combined (Federal and state) EIG tax burden on the number of firms using state-level panel data.

Business Inspiration: Small Business Leadership in Recovery?

2012 ◽  
Vol 26 (6) ◽  
pp. 473-489 ◽  
Author(s):  
David Rae ◽  
Liz Price ◽  
Gary Bosworth ◽  
Paul Parkinson
Keyword(s):  
Public Sector ◽  
Small Business ◽  
Small Firms ◽  
Development Programme ◽  
Economic Downturn ◽  
Business Leadership ◽  
Innovation Development ◽  
Business Survival ◽  
Skill Sets ◽  
The Impact

Business Inspiration was a short, action-centred leadership and innovation development programme designed for owners and managers of smaller firms to address business survival and repositioning needs arising from the UK's economic downturn. The article examines the design and delivery of Business Inspiration and the impact of the programme on participants' learning experiences. It also assesses whether there are transferable lessons to be learned for the development of small firms in general. The article contributes new insights to the debate and the literature on owner–manager development in small firms. The authors propose that there is continuing need and demand for such learning. They examine the requirements for public-sector investment and for specific approaches and skill sets in designing, marketing and delivering effective programmes of this type.

Sheepskin effects in Japan

2005 ◽  
Vol 26 (4) ◽  
pp. 320-335 ◽  
Author(s):  
Thomas K. Bauer ◽  
Patrick J. Dross ◽  
John P. Haisken‐DeNew
Keyword(s):  
Labor Market ◽  
Small Firms ◽  
Admission Policy ◽  
Large Firms ◽  
Data Set ◽  
Capital Theory ◽  
Content Type ◽  
The Usa ◽  
Recruitment System

PurposeThe purpose of this paper is to examine the role of sheepskin effects in the return to education in Japan.Design/methodology/approachThe paper provides a short description of the Japanese schooling and recruitment system. It then describes the data set and the empirical approach. Estimation results are presented for the various specifications. The baseline specification closely follows existing studies for the USA to facilitate comparability across the two countries. The paper further investigates whether there are significant firm‐size differences in the estimated sheepskin effects and whether sheepskin effects disappear with increasing job tenure.FindingsThe estimation results indicate that sheepskin effects explain about 50 percent of the total returns to schooling. The paper further finds that education as a signal is only important for workers in small firms with the size of these effects being similar to comparable estimates for the USA. Finally, the estimated degree effects decrease with firm tenure, in particular for small firms. These results could be explained by the particular recruitment system of large firms in Japan, which makes university diploma as a screening device unimportant for large firms and the admission policy of Japanese universities.Originality/valueBy investigating the role of sheepskin effects in a labor market that differs substantially from the labor market in the USA, the paper provides additional insights to the human capital theory‐screening hypothesis debate.

Firm size and the political cycle premium

2015 ◽  
Vol 41 (10) ◽  
pp. 1077-1095
Author(s):  
Chris B Malone ◽  
Hamish Anderson ◽  
Peng Cheng
Keyword(s):  
New Zealand ◽  
Small Firms ◽  
The Political ◽  
Firm Level ◽  
Content Type ◽  
Level Data ◽  
Political Cycle ◽  
Firm Level Data ◽  
The Usa ◽  
Political Term

Purpose – The purpose of this paper is to use firm-level data to examine whether the political cycle differentially relates to small vs large firms in New Zealand; a country that operates a unicameral political system has a short three-year political term and a right-of-centre stock market premium exists. Design/methodology/approach – Using firm-level data from 1972 to 2010, the authors examine monthly returns during right-of-centre National governments and left-of-centre Labour governments. The authors apply Santa Clara and Valkanov (2003) regression analysis approach to examine the political cycle impact on firm returns. Findings – Like in the USA, New Zealand’s political cycle premium is driven by small firms; however, the results are opposite. In New Zealand, periods governed by the right of the political spectrum produce significantly higher stock returns than those from the left and this finding is primarily driven by small firms who perform particularly poorly under left-of-centre governments. Research limitations/implications – Small firms were relatively heavily affected by the move to an open, deregulated economy; they were also less able to cope with tight monetary conditions, and periods of sharply falling inflation. New Zealand’s three-year political term may encourage newly formed governments to implement relatively fast moving shifts in policy where a more reasoned and steady approach would be warranted. Originality/value – This is the first paper to use firm-level data outside of the USA to examine the political cycle impact.

“Micro” versus “small” family businesses: a multinational analysis

2015 ◽  
Vol 22 (3) ◽  
pp. 380-396 ◽  
Author(s):  
Robert N. Lussier ◽  
Matthew C. Sonfield
Keyword(s):  
Family Business ◽  
Financial Management ◽  
Small Firms ◽  
Family Businesses ◽  
Management Style ◽  
Small Enterprise ◽  
Content Type ◽  
Small Family ◽  
The Usa ◽  
Micro Level

Purpose – The purpose of this paper is to compare “micro” enterprise (0-9 employees) to “small” enterprise (10-49 employees) family businesses with regard to 12 important managerial characteristics in eight countries: Argentina, Croatia, Egypt, France, Kosovo, Kuwait, Serbia, and the USA (n=601). Design/methodology/approach – The research methodology was survey research. To statistical test 12 hypotheses, MANCOVA was run to compare differences between micro and small family business, while controlling for years in business. Findings – Six significant differences were: “small” firms are more likely to employ non-family member managers, are more likely to engage in the formulation of succession plans, are more likely to utilize outside advisory services, make greater use of sophisticated financial management methods, and have a more formal management style than “micro” firms; but the influence of the founder is greater in “micro” firms. Practical implications – For practitioners and consultants the findings of this study should enable family business owner/managers, and their advisors, to better understand the possible impacts of moving from a “micro” level to a “small” size level, and thus lead to more effective family business management. Originality/value – This research fills a gap in the literature, as there has been minimal prior research with the specific focus of comparing “micro” vs “small.” Thus, it develops a foundation for further study in this area.

Graduates into enterprise

1987 ◽  
Vol 1 (1) ◽  
pp. 41-46
Author(s):  
Laing Barden
Keyword(s):  
Work Experience ◽  
Small Firms ◽  
Service Sector ◽  
Manufacturing Firms ◽  
Recruitment Strategy ◽  
Group Training ◽  
Training Scheme ◽  
The Usa ◽  
Difficult Area ◽  
The Uk

The performance of industry in the UK has been criticized in a number of reports from the DTI; the underlying cause is a widespread weakness in management, particularly the lack of good quality graduates. Companies within the USA, Japan and FRGermany show that graduate-managed small firms are more innovative, grow faster and employ more people. Evidence suggests that work experience based on sandwich placement in small firms greatly increases graduate employment in small firms in both the manufacturing and service sector. In the particularly difficult area of technologically-based small manufacturing firms, there is need for a recruitment strategy equivalent to the large firms' ‘milkround’. These two components make up the proposed new Group Training Scheme to be based on HEI, particularly the polytechnics. Such an initiative requires major resources, which calls for joint funding from the MSC, DES and DTI and other local and professional bodies.

Alliance portfolios and firm performance: the moderating role of firms’ strategic positioning

2017 ◽  
Vol 10 (2) ◽  
pp. 206-226 ◽  
Author(s):  
Aleksey Martynov
Keyword(s):  
Firm Performance ◽  
Fixed Effects ◽  
Small Firms ◽  
Strategic Positioning ◽  
Content Type ◽  
The Usa ◽  
Study Characteristics ◽  
Moderating Role ◽  
Alliance Portfolios

Purpose The purpose of this paper is to fill the theoretical void in the discussion of effects of alliance portfolios on firm performance by studying the moderating role of a firm’s strategic positioning. Design/methodology/approach A fixed effects, autoregressive panel model on a comprehensive, longitudinal sample of large and medium-sized publicly traded companies in the USA. Findings The effect of alliance portfolios on firm performance is conditional on the firm’s strategic positioning. Research limitations/implications The results may not be applicable to firms outside the USA or small firms. Practical implications Executives should craft their alliance portfolios while considering the strategic positioning of their firms. Originality/value This paper presents the first study of alliance portfolios that uses a comprehensive, multi-industry sample while considering firms’ strategic positioning. The paper is the first to jointly study characteristics of alliance portfolios and firm strategies.

A competitive resource: consumer-perceived new-product creativity

2020 ◽  
Vol 29 (7) ◽  
pp. 999-1010
Author(s):  
Bing Xu
Keyword(s):  
Consumer Behavior ◽  
New Product Development ◽  
Structural Equation ◽  
Small Firms ◽  
New Product ◽  
Equation Modeling ◽  
Content Type ◽  
The Usa ◽  
Purchase Behaviors ◽  
Product Creativity

Purpose This paper aims to examine the influences of consumer-perceived new-product creativity (NPC) on consumers’ purchase intentions (PIs), along with the mediating effects of NPC meaningfulness between NPC novelty and PI, and between NPC communicableness and PI. Design/methodology/approach Data were collected through a self-administrated survey approach in the South West of the USA. Hypotheses were tested by using structural equation modeling and a sample consisted of 463 respondents. Findings The study shows that new-product novelty and communicableness are positively related to consumers’ PIs while new-product meaningfulness mediates these relationships. Research limitations/implications This research advances the existing creativity literature by probing the core component among different creativity constructs. The study also contributes to the consumer-behavior literature, which has rarely examined consumers’ perceived creativity. Practical implications This research offers theoretical foundations and guidelines for entrepreneurs and small firms to develop new products and promotion strategies. Usefulness as a dominant product/service factor should be emphasized in practice. Originality/value A research gap at the interface of new product development and consumer behavior is addressed by investigating the effect of consumer-perceived NPC on consumers’ purchase behaviors.

Psychological Resilience and Its Downstream Effects for Business Survival in Nascent Entrepreneurship

2018 ◽  
Vol 44 (2) ◽  
pp. 233-255 ◽  
Author(s):  
Ingrid C. Chadwick ◽  
Jana L. Raver
Keyword(s):  
Test Theory ◽  
Psychological Resilience ◽  
Nascent Entrepreneurs ◽  
Nascent Entrepreneurship ◽  
Business Survival ◽  
Downstream Effects ◽  
Potential Benefits ◽  
Broaden And Build Theory ◽  
Time Lagged ◽  
First Time

While scholars frequently argue that nascent entrepreneurs will be more successful if they are resilient, this assumption remains untested and the mechanisms for its potential benefits are unknown. To establish the utility of this psychological construct, we draw from Fredrickson's broaden-and-build theory (1998 ) to develop and test theory on the processes through which psychological resilience influences first-time entrepreneurs' business survival. Results of a time-lagged study of nascent entrepreneurs followed over a 2-year period support this theory, highlighting the cognitive and behavioral ways in which psychological resilience helps nascent entrepreneurs become less vulnerable to their stressful circumstances.

Decision making under uncertainty? R&D activity and market value during financial crisis

2019 ◽  
Vol 23 (3) ◽  
pp. 383-401 ◽  
Author(s):  
Christos Sofronas ◽  
Fragiskos Archontakis ◽  
Palie Smart
Keyword(s):  
Financial Crisis ◽  
Small Firms ◽  
Innovation Management ◽  
Market Value ◽  
Strategic Decision ◽  
Data Set ◽  
Content Type ◽  
Time Period ◽  
Weak Evidence ◽  
The Usa

PurposeIn the research & development (R&D) and innovation management literature, the question of whether or not to perform research in the private sector is always a pertinent one. Several studies have used market value to measure its association with a firm’s R&D performance. Nevertheless, in Europe there have been considerably less studies as compared to the USA because the analysis is complicated by data issues and different country-specific laws. The purpose of this paper is to further advance this field of research. The study provides insights into the strategic decision behind conducting R&D.Design/methodology/approachThe econometric analysis is based on a unique panel data set of 133 companies in 13 European countries which is collected from the Bloomberg database covering the time period from 2002 to 2012.FindingsThe empirical findings are as follows: there is weak evidence in support of the hypothesis that R&D expenditure positively affects the firm’s market value, a fact which is confirmed by other published works; there is weak evidence that economic events can disrupt the connection of R&D programs with the market value of firms; and for a highly controversial topic in the literature, data suggest that small firms are rather favoured more from R&D expenditure than large firms.Originality/valueThe current study expands the discussion regarding the effect of R&D on the market value of firms via empirical evidence, within the specific environment of the European financial crisis. Future managerial, informed-based, decisions can be drawn on the present results.

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