Determinants of Small Business Presence in Japanese and UK Manufacturing

Noriyuki Doi and Marc Cowling

No 8, Discussion Paper Series from School of Economics, Kwansei Gakuin University

Abstract: The present paper has attempted to examine determinants of small business(SMEs) presence in Japanese and UK manufacturing industries, using a cross-industry model. The results suggest that market structure elements have a definite influence on SMEs' share. This conclusion is consistent with the findings observed in the US and other European countries. The main results here are the following; (1) Concentration is negatively related to SMEs' share. (2) Capital intensity and requirements have a negative influence. (3) Scale economies have a negative association with SMEs f share. (4) R&D provides disadvantages for SMEs. (5) The above results are found for both the countries. But, advertising shows a different result between the countries; it has a negative effect in the UK, while it has no effect in Japan. (6) Also, both industry size and growth have a different relationship between the countries. These factors have a significant effect in the UK. but the former has a negative effect, while the latter has a positive effect. On the other hand, these factors have no discernible effect in Japan. (7) The subcontracting has no definite influence on SMEs' share in Japan,

Pages: 27 pages
Date: 1995, Revised 1995
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Citations: View citations in EconPapers (1)

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