By Peter Johnson
This publication brings jointly thirty years of unique empirical learn on key features of the formation and improvement of small agencies from chosen articles authored or co-authored via Peter Johnson. whole with a complete advent from the writer putting the paintings relating to the modern debates at the topic and delivering a cohesive evaluation, those essays supply a good old context for present learn during this sector. a number of the reviews during this e-book emphasise the interrelatedness of monetary task and judgements, an emphasis that serves as an immense reminder of the complicated company environments within which small corporations function. The ebook is split into 5 sections. the 1st half specializes in the method of commercial formation. partially , the function of recent organizations in neighborhood improvement is taken into account. The 3rd part bargains with employment concerns, when half 4 appears at a variety of features of progress and improvement. ultimately, the e-book concludes with articles on coverage.
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Extra resources for Information Technology and Competitive Advantage in Small Firms (Routledge Studies in Small Business)
Example text
Further empirical content must of course be added to this simple statement, and it is first useful to examine the ways in which the framework may deal with a number of elements which are commonly associated with firm formation. Firm formation in manufacturing industry 29 Comparison of prospects in self-employment with those of employment in an industry may well be influenced by a number of non-monetary considerations. 8 These factors are of course notoriously difficult to measure quantitatively, though their importance is shown by questionnaire results.
HMSO (1971) Report of the Committee on Inquiry on Small Firms (The Bolton Report), Cmnd 4811, HMSO, London. Johnson, P. S. and Cathcart, D. G. (1979a) New Manufacturing Firms and Regional Development, Regional Studies, 13, 269–80. Johnson, P. S. and Cathcart, D. G. (1979b) The Founders of New Manufacturing Firms: A Note on the Size of their Incubator Plants, Journal of Industrial Economics, 28, 219–24. Kihlstrom, R. E. and Laffont, J. J. (1979) A General Equilibrium Entrepreneurial Theory of Firm Formation, Journal of Political Economy, 87, 719–48.
791 All of the coefficients are highly significantly different from zero, and the goodness of fit is very good. The regression ‘explains’ almost 80 per cent of the variation in formation rates across industries. The coefficients have the appropriate signs, but the significant difference between the coefficients on log Π and log Y requires further comment. The framework developed earlier suggests that the formation of entirely new firms is related to expected profits and expected earnings from employment in a symmetric manner, but this is not supported by the results shown in Equation 2.