The Survival of Small Business Enterprise

Gavin Reid

CRIEFF Discussion Papers from Centre for Research into Industry, Enterprise, Finance and the Firm

Abstract: This paper considers three themes central to the survival of small business enterprise. Firstly, the incentive for entrepreneurship, which is discussed within a theoretical framework that draws on cooperative market games analysis, and finds a rationale for entrepreneurship in facilitating coalition formation. Secondly, the determinants of survival of a small firm, which is discussed whithin a statistical framework, providing estimates of the influence of key factors like gearing and product range on survival over a three year period. Thirdly, the political economy of enterprise stimulation, which looks at enabling institutions for fostering the inception and growth of small firms (like the Scottish Development Agency and Scottish Enterprise), considered from the standpoint of comparative institutional analysis. The treatment is informal, being based on an Inaugural Lecture, and is designed to be accesssible to the non-specialist.

Date: 1993-10
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