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This paper provides a critical overview of a recent attempt to create an independent statutory "voice" for small enterprises within the formal government bureaucracy in one Australian jurisdiction. It discusses the creation and eighteen months of activity of the Small Business Commissioner of the Australian Capital Territory.
In 2003 the ACT government foreshadowed that, as part of its strategy to create the most small-business-friendly location in Australia, it would establish a Small Business Commissioner as a statutory appointment. The Legislative Assembly passed the Small Business Commissioner Act in 2004 and activity began in March 2005.
The key activities of the Commissioner have been to examine small business complaints about ACT government agencies; to promote the use of mediation and/or other alternative dispute resolution tools for the settlement of disputes between small enterprises and other businesses; to provide independent advice to the Territory government about laws, regulations and policies that may affect small firms; to oversee the introduction of small business service charters within government agencies; and to establish a more "business friendly" service culture within ACT government agencies.
On one hand, it is clear that a Commissioner role has a potentially significant strategic importance for small and medium-sized enterprises, principally through the provision of independent commentary, pushing for red tape and regulatory reduction, and by providing mediation services and investigative functions. However, there are also some current problems with the role. These include potential overlap with other regulatory and investigative bodies; lack of formal compulsive powers; its dependence on political support for its effectiveness; insufficient resources; and the nature of the relationship it has with other government entities.
This paper investigates how Chinese SMEs configure marketing, cost-control, and innovation strategies in order to attain better organizational effectiveness. Rather than the more standard approach of suggesting that SMEs focus exclusively on one strategy, we hypothesize that when a strategy configuration is composed of multiple prioritized and related strategies, organizational effectiveness will be improved. Data collected from 133 small and medium-sized Chinese SMEs verified our hypotheses. The implications of our study for Chinese SMEs, China's policy makers, and overseas investors are discussed.
The entrepreneurship literature teaches us that the aspirations and competence of SME owner-managers as well as their strategic management behaviour can influence both the development and performance of their firm. However the research issues that surround the owner-manager's business venturing mode, that is, whether he or she has created a new firm, acquired an already existing firm, or acceded to a family firm's leadership and ownership by succession and/or inheritance, have rarely been addressed in an integrated manner. Now, founders, acquirers and successors may have fundamentally different strategic profiles, that is, in terms of the strategic capabilities they aim to develop and the type of performance they seek for their firm. In aiming to identify individual correlates and organizational effects of the entrepreneur's business venturing mode, an empirical study of 357 Canadian and French SMEs was thus undertaken. The results reveal significant differences between the three groups of owner-managers, that is, between the 196 founders, 96 acquirers and 65 successors with regard to their competence and motivations and with regard to the strategic capabilities and business performance of their firm. The results also reveal the owner-manager's business venturing mode to be a significant predictor of the firm's market and HR capabilities as well as its growth, productivity and profitability.
Small businesses are critical to improving economic development in rural areas of South Africa. However, rural entrepreneurs are still faced with challenges and problems which make the success of small businesses, especially in rural areas, uncertain. This paper investigates business environmental, financial and infrastructural factors that influence the success or otherwise of Small and Medium Enterprises (SMEs) in rural areas. Primary data was collected in five rural areas of KwaZulu-Natal (KZN) from a sample of 374 business owners/managers, with respondents completing a questionnaire. Access to finance and skills shortages were the factors that most significantly differentiated between more successful and less successful rural businesses in KZN. The majority of respondents indicated that poor roads/transport and access to electricity were major problems.
Business transfers are linked to both the beginning and the end of entrepreneurial processes. A person can become an entrepreneur by acquiring an existing business instead of starting one, and exit from entrepreneurship can occur through selling the business. Business transfers are gradually becoming more common among small businesses, largely due to entrepreneurs’ aging, and thus deserve attention from entrepreneurship scholars. In particular, the issue of why and how business transfer negotiations fail without achieving a transfer has received little research attention. The purpose of this paper is to explore this phenomenon from potential buyers’ and sellers’ perspectives. The findings are based on a sample of 156 responses. The results suggest that the problems occurring in unfinished business transfers are quite numerous and the gaps between the views of the two negotiating parties are wider than in cases where business transfer negotiations are concluded successfully, indicating that the initial negotiation positions can be crucial. This research proposes some key elements to consider when planning an exit by business transfer and highlight the importance of unfinished small business transfers as an essential element of a dynamic business transfer market; a substantial proportion of the potential buyers and sellers are satisfied with the outcome even though the transfer did not occur.
Developing new services is vital for a service-based company to succeed in the long run. This requires both innovation capability and understanding customer needs. Previous research has shown that if a firm wishes to develop an innovation superior to the competition, it must have both a strong technology orientation and a strong market orientation. The objective of this study was to examine the effect of market orientation and technology orientation on service innovation capability in SMEs operating in the field of social and health care. In addition, this study examined the obstacles to using digitalization and new technologies in service innovations. Mixed methods design was applied so both quantitative and qualitative data was used. The results from the quantitative part of this study show that both technology orientation and market orientation have a positive and statistically significant effect on service innovation capability in SMEs operating in the field of social and health care. Furthermore, market orientation is the most important variable in the model. The results from the qualitative element again show that some of the hindering factors of using digitalization and new technologies arise from practices and attitudes of social and health care actors but others arise from the digitalization and new technologies themselves.