How Home-Peers Affect the Export Market Exit of Small Firms: Evidence From Canadian Exporters

2018 ◽  
Vol 43 (5) ◽  
pp. 1018-1045 ◽  
Author(s):  
Sui Sui ◽  
Matthias Baum ◽  
Shavin Malhotra
Keyword(s):  
Panel Data ◽  
Small Business ◽  
Small Firms ◽  
Foreign Market ◽  
Export Market ◽  
Market Exit

We investigate how home-peer entry density (the number of same-industry firms that originate from the same country and export to the same foreign market) affects the export market exit of small firms. Drawing on panel data from 41,445 Canadian small business exporters, we find a U-shaped relationship between home-peer entry density and small firms’ hazard of exit from an export market; that is, firms’ hazard of exit decreases as the home-peer density increases to a certain point and increases after that point. We also find that this U-shaped relationship is stronger for small firms that internationalize early.

A brief history of small business in Australia, 1970-2010

2014 ◽  
Vol 3 (2) ◽  
pp. 222-236 ◽  
Author(s):  
Michael T. Schaper
Keyword(s):  
Small Business ◽  
Small Firms ◽  
Formal Education ◽  
Extensive Literature ◽  
Business Sector ◽  
Role Of Government ◽  
Content Type ◽  
Support Tools ◽  
History Of ◽  
Training And Research

Purpose – The purpose of this paper is to provide an overview of the development of the SME sector in Australia, concentrating on a number of key areas: small business definitions and numbers; the role of government; the emergence of key industry groups; and the evolution of education, training and research services. Design/methodology/approach – The study is a result of extensive literature reviews, desk research and the recollections of various participants in the field. Findings – There have been major changes to the Australian small business sector over the last 40 years. In 1983-1984 there were an estimated 550,000 small firms, and by 2010 this had grown to almost two million. Government involvement in, and support for, SMEs was virtually non-existent before 1970. Following the delivery of the Wiltshire report (1971), however, both state and federal governments responded by developing specialist advisory services, funding programmes and other support tools. Virtually non-existent before the 1970s, several peak industry associations were formed between 1977 and the 1990s. At the same time, formal education and teaching in the area expanded in the 1970s and 1980s and is now widespread. Practical implications – Development of the small business sector in Australia has often paralleled similar trends in other OECD nations. State and territory governments have often (but not always) been the principal drivers of policy change. Originality/value – There has been no little, if any, prior documentation of the evolution of the small business sector in Australia in the last 40 years.

Assessment of indicators of innovation activity and implementation of the policy of state support for small innovative business in the Russian Federation

2021 ◽  
pp. 3-10
Author(s):  
А.А. Абдулвагапова
Keyword(s):  
Panel Data ◽  
Small Business ◽  
Russian Federation ◽  
Residential Buildings ◽  
Business Owners ◽  
Innovation Activity ◽  
Small Business Owners ◽  
Internal Factors ◽  
Research Personnel ◽  
The Russian Federation

В статье представлены результаты оценки внешних и внутренних факторов, оказывающих влияние на реальный объем инновационных товаров, работ и услуг посредством построения модели по панельным данным за 2011-2018 годы по семидесяти двум регионам Российской Федерации. Было выявлено приблизительно тождественное влияния численности научно-исследовательского персонала и вводимых в действие общих площадей жилых домов на зависимую переменную. Также представлены результаты проведенного опроса собственников малого бизнеса на предмет выявления факторов-ограничителей, препятствующих инновационной деятельности. The article presents the results of assessing external and internal factors that influence the real volume of innovative goods, works and services by building a model based on panel data for 2011-2018 for seventy-two regions of the Russian Federation. It was found that the influence of the number of research personnel and the total area of residential buildings put into operation on the dependent variable was approximately identical. Also presented are the results of a survey of small business owners in order to identify factors-constraints that impede innovation.

scholarly journals Innovation in the Textiles Sector: A Firm-Level Analysis of Technological and Nontechnological Innovation

2016 ◽  
Vol 21 (Special Edition) ◽  
pp. 129-166 ◽  
Author(s):  
Waqar Wadho ◽  
Azam Chaudhry
Keyword(s):  
Small Firms ◽  
Innovation Process ◽  
Foreign Market ◽  
Knowledge Flows ◽  
Innovation Activity ◽  
Local Market ◽  
Large Firms ◽  
Firm Level ◽  
Innovation Activities ◽  
Innovation Rate

In a knowledge-based economy, it has become increasingly important to better understand critical aspects of the innovation process such as innovation activities beyond R&D, the interaction among different actors in the market and the relevant knowledge flows. Using a sample of 431 textiles and apparel manufacturers, this paper explores the dynamics of firms’ innovation activities by analyzing their innovation behavior, the extent and types of innovation, the resources devoted to innovation, sources of knowledge spillovers, the factors hampering technological innovation and the returns to innovation for three years, 2013–15. Our results show that 56 percent of the surveyed firms introduced technological and/or nontechnological innovations, while 38 percent introduced new products, these innovations were generally incremental as the majority of innovations were new only to the firm. Furthermore, the innovation rate increases with firm size; large firms have an innovation rate of 83 percent, followed by medium firms (68 percent) and small firms (39 percent). Technologically innovative firms spent, on average, 10 percent of their turnover on innovation expenditure in 2015. Acquisition of machinery and equipment is the main innovation activity, accounting for 56 percent of innovation expenditures. Large firms consider foreign market sources (clients and suppliers) and small firms consider local market sources their key source of information and cooperation. 63 percent of technological innovators cite improving the quality of goods as their most important objective. Lack of available funds within the enterprise is the single most important cost factor hampering innovation, followed by the high cost of innovation. Our results show that 67 percent of the turnover among product innovators in 2015 resulted from product innovations that were either new to the market or new to the firm.

scholarly journals Planning a market exit strategy for manufacturers of consumer goods when entering foreign markets

2017 ◽  
Vol 1 (1) ◽  
pp. 7
Author(s):  
Maik Döring
Keyword(s):  
Market Entry ◽  
Planning Process ◽  
Foreign Market ◽  
Consumer Products ◽  
Market Penetration ◽  
Exit Strategy ◽  
Foreign Markets ◽  
Worst Case ◽  
Market Exit ◽  
Planning Processes

Aim: The internal market for manufacturers of consumer products companies is often too small in order to grant long-term success. Therefore, companies expand and enter foreign markets. This paper presents a planning process for market penetration for the selected foreign market, which will show the possibility of a withdrawal and shows also whether an exit scenario is planned by manufacturers of consumer products and when companies tend to think about a market exit.Design / Research methods: First, the literature was studied. Based on this, hypothesis were prepared. This was followed by a telephone survey of decision-makers from German manufacturers of the consumer products companies. Conclusions / findings: A planning process for market penetration was developed, which shows next to the market entry also the market exit. Additional this paper shows that manufacturers of consumer products companies can be better prepared for a market exit than companies without an exit strategy, in particular, if the manufacturer sets out relevant economic parameters for the foreign market which determine whether to remain in the market or leave.Originality / value of the article: When analysing literature on planning processes for market entry, it becomes clear that an exit strategy is not planned. This may indicate that the authors did not consider a market exit and/or anticipate this as a worst case in their market entry assumption.Implications of the research: The last market entry of the surveyed companies usually occurred recently. For market exit results to be determined, a further consultation of the companies examined should be undertaken over a longer period of time.

Do Size-dependent Tax Incentives Discourage Plant Size Expansion? Evidence from Panel Data in Indian Manufacturing

2021 ◽  
Vol 15 (4) ◽  
pp. 395-417
Author(s):  
K. V. Ramaswamy
Keyword(s):  
Panel Data ◽  
Small Firms ◽  
Policy Design ◽  
Threshold Value ◽  
Tax Incentives ◽  
Plant Size ◽  
Jel Classification ◽  
Indian Government ◽  
Econometric Tests ◽  
Additional Support

The article presents a new empirical application of the idea of threshold burden of tax incentives in India. The Indian government provided tax exemption to manufacturing units with sales turnover below a specified level over the years. The turnover threshold limit was US$1 million in 2009. Whether size-based tax rules incentivise firms to reorganise their production structure in order to stay below the threshold to take advantage of fiscal incentives is the key question addressed in this article. A significant factor that is widely believed to encourage small firms to stay small has been the tax incentives in the form of excise tax (turnover tax) exemptions below a specified value of sales each year. A key strategy followed by Indian firms to stay small and below the threshold has been product subcontracting or capacity subcontracting. We provide econometric evidence on this particular mechanism. The study is based on a unique unbalanced panel data of 29,213 manufacturing plants spanning the period 1999–2008 and a panel of 4,613 manufacturing firms covering the period 1990–2010. Average subcontracting intensity was found to be significantly higher in manufacturing establishments and firms with sales turnover below the ceiling level set by the tax rules. Econometric tests supported the hypothesis that establishments take advantage of tax incentives by staying below the threshold value of output. Econometric tests for a subgroup of domestic-market-oriented firms provide additional support to the hypothesis of threshold effects. These findings are relevant for policy design in developing and emerging economies. JEL Classification: O14, O17, L60, H32, H25

The World of Small Business: A Suggested Typology

1977 ◽  
Vol 1 (4) ◽  
pp. 13-19 ◽  
Author(s):  
Lee E. Preston
Keyword(s):  
Small Business ◽  
Small Firms ◽  
Industrial Area ◽  
Small Enterprises ◽  
Large Firms ◽  
Industrial Activities ◽  
The World ◽  
New Business ◽  
Post Industrial

Detailed study of a sample of more than 200 originally-small firms in a single major industrial area, plus an examination of new business successes as identified by Fortune, reveals five major types of small enterprises, only a minority of which can be described as successful “post-industrial” activities based on new areas of knowledge and new sources of demand. By far the overwhelming portion of the firms studied were found to be operating within traditional “small business industries”, in highly specialized activities with very small total demand, and in satellite roles to major industries or large firms.

scholarly journals Credit Constraint Exports in Countries with Different Degrees of Contract Enforcement

2017 ◽  
Vol 7 (1) ◽  
pp. 227 ◽  
Author(s):  
Zi-Yi Guo ◽  
Yangxiaoteng Luo
Keyword(s):  
Financial Markets ◽  
Financial Support ◽  
Foreign Market ◽  
Export Market ◽  
Contract Enforcement ◽  
Technology Shocks ◽  
Credit Constraint ◽  
Export Decisions ◽  
Heterogeneous Firm ◽  
Very High

We theoretically consider firms’ export decisions in a heterogeneous firm framework. The paper assumes firms have idiosyncratic productivity levels and are credit-constrained in the export market. Firms in different countries have different degrees of credit constraints. Because of imperfect financial markets, firms might not be able to get the financial support to export even although they are profitable enough from the foreign market. In a country with strong contract enforcement, firms are more likely to export and export to more destinations; while in a country with weak contract enforcement, firms are more likely to be constrained by liquidity and export to fewer destinations. However, for those firms whose productivity is very low or very high, these influences do not exist. Moreover, we consider technology shocks and illustrate that technology shocks will further impede firms’ export decisions.

Small Business Growth Characteristics

1981 ◽  
Vol 5 (3) ◽  
pp. 33-43 ◽  
Author(s):  
Calvin M. Boardman ◽  
Jon W. Bartley ◽  
Richard L. Ratliff
Keyword(s):  
Small Business ◽  
Small Firm ◽  
Small Firms ◽  
Inflation Rate ◽  
Growth Characteristics ◽  
Business Growth ◽  
Is Success ◽  
Small Business Growth ◽  
Financial Characteristics ◽  
Is Failure

Financial characteristics are presented for small firms whose sales increased at a rate greater than the inflation rate over the period 1974–1979. It is noted that these characteristics differ somewhat depending on whether they were a retailer, manufacturer or wholesaler. A growing small firm is generally characterized as one which increases its leverage, decreases its liquidity and incurs a heavy investment in operational assets. Interestingly, it is also shown that these same characteristics, if taken to extremes, are typical of the failed companies in the sample. The reward of growth is success; the risk of growth is failure.

Sign in / Sign up

Export Citation Format

Share Document