The Small-Firm Sector

Defining the Small-firm Sector EU definition of SMEs –by number of employees micro enterprises small enterprises medium enterprises EU definition of SMEs –by number of employees micro enterprises small enterprises medium enterprises

EU SME definitions

Defining the Small-firm Sector EU definition of SMEs –by number of employees micro enterprises small enterprises medium enterprises –use of EU definitions in the UK EU definition of SMEs –by number of employees micro enterprises small enterprises medium enterprises –use of EU definitions in the UK

Defining the Small-firm Sector EU definition of SMEs –by number of employees micro enterprises small enterprises medium enterprises –use of EU definitions in the UK Size of the small-firm sector in the UK EU definition of SMEs –by number of employees micro enterprises small enterprises medium enterprises –use of EU definitions in the UK Size of the small-firm sector in the UK

Number of UK businesses, employment and turnover by size of enterprise (2002) Number of UK businesses, employment and turnover by size of enterprise (2002)

Number of UK businesses, employment and turnover by size of enterprise (2002) Number of UK businesses, employment and turnover by size of enterprise (2002)

Number of UK businesses, employment and turnover by size of enterprise (2002) Number of UK businesses, employment and turnover by size of enterprise (2002)

Number of UK businesses, employment and turnover by size of enterprise (2002) Number of UK businesses, employment and turnover by size of enterprise (2002)

Number of UK businesses, employment and turnover by size of enterprise (2002) Number of UK businesses, employment and turnover by size of enterprise (2002)

SME share of UK businesses, employment and turnover by industry (2002) SME share of UK businesses, employment and turnover by industry (2002)

SME share of UK businesses, employment and turnover by industry (2002) SME share of UK businesses, employment and turnover by industry (2002)

SME share of UK businesses, employment and turnover by industry (2002) SME share of UK businesses, employment and turnover by industry (2002)

SME share of UK businesses, employment and turnover by industry (2002) SME share of UK businesses, employment and turnover by industry (2002)

The Small-firm Sector in the UK Changes over time –growth in the service sector –growth in niche markets –new working practices flexible labour markets subcontracting –growth in self-employment as an answer to unemployment Changes over time –growth in the service sector –growth in niche markets –new working practices flexible labour markets subcontracting –growth in self-employment as an answer to unemployment

The importance of small firms in the UK Employment in manufacturing enterprises with fewer than 200 employees as % of total employment in manufacturing enterprises

Employment in manufacturing enterprises with fewer than 200 employees as % of total employment in manufacturing enterprises The importance of small firms in the UK

Employment in manufacturing enterprises with fewer than 200 employees as % of total employment in manufacturing enterprises Self employed as % of UK labour force The importance of small firms in the UK

Employment in manufacturing enterprises with fewer than 200 employees as % of total employment in manufacturing enterprises Self employed as % of UK labour force The importance of small firms in the UK

The Small-firm Sector in the UK Changes over time –growth in the service sector –growth in niche markets –new working practices flexible labour markets subcontracting –growth in self-employment as an answer to unemployment –role of government Changes over time –growth in the service sector –growth in niche markets –new working practices flexible labour markets subcontracting –growth in self-employment as an answer to unemployment –role of government

The Small-firm Sector in the UK Changes over time –growth in the service sector –growth in niche markets –new working practices flexible labour markets subcontracting –growth in self-employment as an answer to unemployment –role of government International comparisons Changes over time –growth in the service sector –growth in niche markets –new working practices flexible labour markets subcontracting –growth in self-employment as an answer to unemployment –role of government International comparisons

Survival, Growth and Failure of Small Firms Competitive advantage and small firms –flexibility –quality of service –production efficiency and low overheads –product development and innovation Problems facing small businesses –selling and marketing –funding R&D –management skills –less ability to gain economies of scale Competitive advantage and small firms –flexibility –quality of service –production efficiency and low overheads –product development and innovation Problems facing small businesses –selling and marketing –funding R&D –management skills –less ability to gain economies of scale

The growth of small businesses –the process of growth The growth of small businesses –the process of growth Survival, Growth and Failure of Small Firms

Management role and style in the five stages of a small business Management role and style in the five stages of a small business

Management role and style in the five stages of a small business Management role and style in the five stages of a small business

Management role and style in the five stages of a small business Management role and style in the five stages of a small business

Management role and style in the five stages of a small business Management role and style in the five stages of a small business

Management role and style in the five stages of a small business Management role and style in the five stages of a small business

Management role and style in the five stages of a small business Management role and style in the five stages of a small business

Survival, Growth and Failure of Small Firms The growth of small businesses (cont.) –the entrepreneur motivation and desire to succeed educational attainment management experience and business knowledge –the firm the age of the business the sector of the economy legal forms location The growth of small businesses (cont.) –the entrepreneur motivation and desire to succeed educational attainment management experience and business knowledge –the firm the age of the business the sector of the economy legal forms location

Survival, Growth and Failure of Small Firms The growth of small businesses (cont.) –strategy workforce and management training use of external finance product innovation export markets use of professional managers –conditions for success of small businesses The growth of small businesses (cont.) –strategy workforce and management training use of external finance product innovation export markets use of professional managers –conditions for success of small businesses

Government Assistance to the Small Firm Small-firm policy in the UK –small business start-up types of support financial assistance –small business growth financial assistance corporate venturing national 'business angels' –training programmes Small-firm policy in the UK –small business start-up types of support financial assistance –small business growth financial assistance corporate venturing national 'business angels' –training programmes

Government Assistance to the Small Firm Small-firm policy in the EU –historical background –SME Action Programme Small-firm policy in the EU –historical background –SME Action Programme

EU SME Action Programme

Government Assistance to the Small Firm Small-firm policy in the EU (cont.) –policy initiatives –financial instruments Structural Fund European Investment Bank –research and technology development –vocational training programmes –other programmes Small-firm policy in the EU (cont.) –policy initiatives –financial instruments Structural Fund European Investment Bank –research and technology development –vocational training programmes –other programmes