Edited by Philip McCann and Tim Vorley
Chapter 6: Small business growth and productivity
The chapter focuses on the experience of small businesses, and reviews the literature on small and medium-sized enterprise (SME) growth and productivity, discussing a range of perspectives on SME growth. It highlights a range of measurement and other issues related to the availability of appropriate data for understanding SME performance, and notes the paucity of robust studies on SME productivity. The range of issues specific to SME productivity performance is discussed. A particular concern is the difficulty of combining information on the SME as a firm organization with the attributes of the entrepreneur(s) who lead and manage that organization. A further focus of the chapter is on the disparate range of evidence on the smallest micro-businesses, where the business founder might typically be self-employed. Specific policy interventions, for example, focusing on strengthening SME leadership, are discussed, and the importance of spatial and regional variation in drivers of SME performance is also highlighted.
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