Small Business, Entrepreneurship, and Industrial Dynamics
Most firms are small and don’t grow very much. Small firms have lower productivity and shorter life expectancy, pay lower wages, and provide fewer benefits and less employment security than large firms. They create a lot of new jobs, but they also often fail, so that their role as net creators of employment is unclear. Nevertheless, a strong argument can be made that small firms, especially entrepreneurial ones, are important — indeed, indispensable — for long-term economic growth and economic welfare.
KeywordsClay Europe Petroleum Transportation Rubber
Unable to display preview. Download preview PDF.
- Acs, Zoltan J. (1996). “Small Firms and Economic Growth.” In P.H. Admiraal (ed.), Small Business in the Modern Economy. Oxford: Black well.Google Scholar
- Acs, Zoltan, J., and David B. Audretsch. (1990). The Economics of Small Firms; A European Challenge. Dordrecht: Kluwer Academic.Google Scholar
- Audretsch, David. (1995). Innovation and Industry Evolution. Cambridge, MA: MIT Press.Google Scholar
- Carlsson, Bo. (1992). “The Rise of Small Business: Causes and Consequences.” In W.J. Adams (ed.), Singular Europe: Economy and Polity of the European Community After 1992, Ann Arbor: Michigan University Press.Google Scholar
- Carlsson, Bo (ed.), (1997). Technological Systems and Industrial Dynamics. Dordrecht: Kluwer Academic.Google Scholar
- Cohen, Wesley M., and Steven Klepper. (1992). “The Tradeoff Between Firm Size and Diversity in the Pursuit of Technological Progress.” Small Business Economics, 4(1), 1–14.Google Scholar
- Edwards, Keith L., and Theodore J. Gordon. (1984). “Characterization of Innovations Introduced on the U.S. Market in 1982.” The Futures Group, prepared for the U.S. Small Business Administration under Contract No. SBA-6050-0A-82, March.Google Scholar
- Karaomerlioglu, Dilek C., and Bo Carlsson. (1997). “Manufacturing in Decline? A Matter of Definition.” Paper presented at the European Association for Research in Industrial Economics (EARIE) conference, Leuven, Belgium, August 31-September 3.Google Scholar
- Klein, Burton H. (1977). Dynamic Economics. Boston: Harvard University Press.Google Scholar
- Metcalfe, J. Stanley. (1995). “Technology Systems and Technology Policy in an Evolutionary Framework.” Cambridge Journal of Economics, 19(1), 25–46.Google Scholar
- Organization for Economic Cooperation and Development (OECD). (1996). SMEs: Employment, Innovation and Growth. Paris: OECD.Google Scholar
- Pratten, Cliff. (1991). The Competitiveness of Small Firms. Cambridge: Cambridge University Press.Google Scholar
- Reynolds, Paul D. (1997). “Business Volatility: Source or Symptom of Economic Growth?” In Z.J. Acs, B. Carlsson, and C. Karlsson (eds.), Entrepreneurship, Small and Medium-Sized Enterprises, and the Macroeconomy. Cambridge: Cambridge University Press.Google Scholar
- Scherer, Fredric M. (1988). Testimony Before the Subcommittee on Monopolies and Commercial Law, Committee of the Judiciary, U.S. House of Representatives, February 24.Google Scholar
- U.S. Small Business Administration. (1997). “Facts About Small Business.” www.sbaonline.sba.gov/ADVO/stats/fact1.html, p. 5.
- Wall Street Journal. (1991). September 11, p. Bt.Google Scholar