the small-firm sector. defining the small-firm sector eu definition of smes –by number of...
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![Page 1: The Small-Firm Sector. Defining the Small-firm Sector EU definition of SMEs –by number of employees micro enterprises small enterprises medium enterprises](https://reader038.vdocuments.site/reader038/viewer/2022110101/56649e6c5503460f94b6bc0f/html5/thumbnails/1.jpg)
The Small-Firm SectorThe Small-Firm Sector
![Page 2: The Small-Firm Sector. Defining the Small-firm Sector EU definition of SMEs –by number of employees micro enterprises small enterprises medium enterprises](https://reader038.vdocuments.site/reader038/viewer/2022110101/56649e6c5503460f94b6bc0f/html5/thumbnails/2.jpg)
Defining the Small-firm SectorDefining 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
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EU SME definitionsEU SME definitions
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Defining the Small-firm SectorDefining 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
![Page 5: The Small-Firm Sector. Defining the Small-firm Sector EU definition of SMEs –by number of employees micro enterprises small enterprises medium enterprises](https://reader038.vdocuments.site/reader038/viewer/2022110101/56649e6c5503460f94b6bc0f/html5/thumbnails/5.jpg)
Defining the Small-firm SectorDefining 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
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Number of UK businesses, employment andturnover by size of enterprise (2002)
Number of UK businesses, employment andturnover by size of enterprise (2002)
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Number of UK businesses, employment andturnover by size of enterprise (2002)
Number of UK businesses, employment andturnover by size of enterprise (2002)
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Number of UK businesses, employment andturnover by size of enterprise (2002)
Number of UK businesses, employment andturnover by size of enterprise (2002)
![Page 9: The Small-Firm Sector. Defining the Small-firm Sector EU definition of SMEs –by number of employees micro enterprises small enterprises medium enterprises](https://reader038.vdocuments.site/reader038/viewer/2022110101/56649e6c5503460f94b6bc0f/html5/thumbnails/9.jpg)
Number of UK businesses, employment andturnover by size of enterprise (2002)
Number of UK businesses, employment andturnover by size of enterprise (2002)
![Page 10: The Small-Firm Sector. Defining the Small-firm Sector EU definition of SMEs –by number of employees micro enterprises small enterprises medium enterprises](https://reader038.vdocuments.site/reader038/viewer/2022110101/56649e6c5503460f94b6bc0f/html5/thumbnails/10.jpg)
Number of UK businesses, employment andturnover by size of enterprise (2002)
Number of UK businesses, employment andturnover by size of enterprise (2002)
![Page 11: The Small-Firm Sector. Defining the Small-firm Sector EU definition of SMEs –by number of employees micro enterprises small enterprises medium enterprises](https://reader038.vdocuments.site/reader038/viewer/2022110101/56649e6c5503460f94b6bc0f/html5/thumbnails/11.jpg)
SME share of UK businesses, employment andturnover by industry (2002)
SME share of UK businesses, employment andturnover by industry (2002)
![Page 12: The Small-Firm Sector. Defining the Small-firm Sector EU definition of SMEs –by number of employees micro enterprises small enterprises medium enterprises](https://reader038.vdocuments.site/reader038/viewer/2022110101/56649e6c5503460f94b6bc0f/html5/thumbnails/12.jpg)
SME share of UK businesses, employment andturnover by industry (2002)
SME share of UK businesses, employment andturnover by industry (2002)
![Page 13: The Small-Firm Sector. Defining the Small-firm Sector EU definition of SMEs –by number of employees micro enterprises small enterprises medium enterprises](https://reader038.vdocuments.site/reader038/viewer/2022110101/56649e6c5503460f94b6bc0f/html5/thumbnails/13.jpg)
SME share of UK businesses, employment andturnover by industry (2002)
SME share of UK businesses, employment andturnover by industry (2002)
![Page 14: The Small-Firm Sector. Defining the Small-firm Sector EU definition of SMEs –by number of employees micro enterprises small enterprises medium enterprises](https://reader038.vdocuments.site/reader038/viewer/2022110101/56649e6c5503460f94b6bc0f/html5/thumbnails/14.jpg)
SME share of UK businesses, employment andturnover by industry (2002)
SME share of UK businesses, employment andturnover by industry (2002)
![Page 15: The Small-Firm Sector. Defining the Small-firm Sector EU definition of SMEs –by number of employees micro enterprises small enterprises medium enterprises](https://reader038.vdocuments.site/reader038/viewer/2022110101/56649e6c5503460f94b6bc0f/html5/thumbnails/15.jpg)
The Small-firm Sector in the UKThe 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
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0
10
20
30
40
50
1920 1930 1940 1950 1960 1970 1980 1990 2000
% The importance of small firms in the UKThe importance of small firms in the UK
Employment in manufacturing enterprises with fewer than 200employees as % of total employment in manufacturing enterprises
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0
10
20
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50
1920 1930 1940 1950 1960 1970 1980 1990 2000
%
Employment in manufacturing enterprises with fewer than 200employees as % of total employment in manufacturing enterprises
The importance of small firms in the UKThe importance of small firms in the UK
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0
10
20
30
40
50
1920 1930 1940 1950 1960 1970 1980 1990 2000
%
Employment in manufacturing enterprises with fewer than 200employees as % of total employment in manufacturing enterprises
Self employed as % of UK labour force
The importance of small firms in the UKThe importance of small firms in the UK
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0
10
20
30
40
50
1920 1930 1940 1950 1960 1970 1980 1990 2000
%
Employment in manufacturing enterprises with fewer than 200employees as % of total employment in manufacturing enterprises
Self employed as % of UK labour force
The importance of small firms in the UKThe importance of small firms in the UK
![Page 20: The Small-Firm Sector. Defining the Small-firm Sector EU definition of SMEs –by number of employees micro enterprises small enterprises medium enterprises](https://reader038.vdocuments.site/reader038/viewer/2022110101/56649e6c5503460f94b6bc0f/html5/thumbnails/20.jpg)
The Small-firm Sector in the UKThe 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
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The Small-firm Sector in the UKThe 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
![Page 22: The Small-Firm Sector. Defining the Small-firm Sector EU definition of SMEs –by number of employees micro enterprises small enterprises medium enterprises](https://reader038.vdocuments.site/reader038/viewer/2022110101/56649e6c5503460f94b6bc0f/html5/thumbnails/22.jpg)
Survival, Growth and Failure of Small FirmsSurvival, 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
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• The growth of small businesses– the process of growth
• The growth of small businesses– the process of growth
Survival, Growth and Failure of Small FirmsSurvival, Growth and Failure of Small Firms
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Management role and style in thefive stages of a small business
Management role and style in thefive stages of a small business
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Management role and style in thefive stages of a small business
Management role and style in thefive stages of a small business
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Management role and style in thefive stages of a small business
Management role and style in thefive stages of a small business
![Page 27: The Small-Firm Sector. Defining the Small-firm Sector EU definition of SMEs –by number of employees micro enterprises small enterprises medium enterprises](https://reader038.vdocuments.site/reader038/viewer/2022110101/56649e6c5503460f94b6bc0f/html5/thumbnails/27.jpg)
Management role and style in thefive stages of a small business
Management role and style in thefive stages of a small business
![Page 28: The Small-Firm Sector. Defining the Small-firm Sector EU definition of SMEs –by number of employees micro enterprises small enterprises medium enterprises](https://reader038.vdocuments.site/reader038/viewer/2022110101/56649e6c5503460f94b6bc0f/html5/thumbnails/28.jpg)
Management role and style in thefive stages of a small business
Management role and style in thefive stages of a small business
![Page 29: The Small-Firm Sector. Defining the Small-firm Sector EU definition of SMEs –by number of employees micro enterprises small enterprises medium enterprises](https://reader038.vdocuments.site/reader038/viewer/2022110101/56649e6c5503460f94b6bc0f/html5/thumbnails/29.jpg)
Management role and style in thefive stages of a small business
Management role and style in thefive stages of a small business
![Page 30: The Small-Firm Sector. Defining the Small-firm Sector EU definition of SMEs –by number of employees micro enterprises small enterprises medium enterprises](https://reader038.vdocuments.site/reader038/viewer/2022110101/56649e6c5503460f94b6bc0f/html5/thumbnails/30.jpg)
Survival, Growth and Failure of Small FirmsSurvival, 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
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Survival, Growth and Failure of Small FirmsSurvival, 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
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Government Assistance to the Small FirmGovernment 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
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Government Assistance to the Small FirmGovernment 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
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EU SME Action ProgrammeEU SME Action Programme
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Government Assistance to the Small FirmGovernment 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