SMALL BUSINESS AND THE NATIONAL ECONOMY
Экономическая теория и математическое моделирование
There has been a resurgence of interest in the small business as an important factory in the national economy. Until the 1970s there was a widespread belief that business would become increasingly concentrated in large units. It was thought that economic growth depended on mass production techniques.
SMALL BUSINESS AND THE NATIONAL ECONOMY.
This paragraph of the unit looks at the place of small business in the national economy , attempting to define its scope and importance in the health of the nation.
The small business revival.
There has been a resurgence of interest in the small business as an important factory in the national economy.
Until the 1970s there was a widespread belief that business would become increasingly concentrated in large units. It was thought that economic growth depended on mass production techniques. The economies of scale created by new tehnologies and global marketing would inevitably confine small firms to a peripheral role in support of larger units. Business research and education overlooked small business management which was regarded in an inferior light.
Today there is great interest in the fortunes of the small business sector with all party support for policies promoting the growth of small enterprises, in recognition of their importance to the health of the economy.
What is a small business?
The 1971 Bolton Report (the report of the 'Committee of Inquiry on Small Firms') defined a small business by three essential characteristics:
1. Personalised management by its owner
2. Small share of its market
3. Independent ownership
It also used some specific measures depending on the industry, such sa:
1. manufacturing: 200 employees or less
2. Retailing and miscellaneous services: 50,000 per annum or less (500,000 at today's prices)
It is generally accepted that there is no uniform 'small firm sector' designated by some simple size criteria. Small enterprises are involved in such a huge range of activities, in widely differing environments that they do not lend themselves to generalised descriptions and suppositions.
The Bolton Report represented a turning point in perceptions of the small business. the committee thought that the small business sector would inevitably decline further and that it needed deliberate support. its priciple recommendation, that a Small Firms Division should be established under a Minister for Small Firms, was implemented.
The Bolton Report advocated support for the small business sector on the grounds that small firms have several special contributions to make as:
1. an outlet for enterprising individuals who would not necessarily in larger environments;
2. the most efficient size of unit in some markets;
3. specialist suppliers, or sub-contractors to larger companies;
4. suppliers to specialised markets, too small for larger companies;
5. competition to prevent monopolies;
6. innovators of products and services;
7. a breeding ground for new industries;
8. the 'seedbed' for tomorrow's large companies and their leaders.
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