SBANC Newsletter
August 16, 2005
Issue 385-2005
QUOTE
"A business has to be involving, it has to be fun, and it has to exercise your creative instincts."
--
Richard Branson
FEATURE PAPER
The impact on growth from public seed-financing to new technology projects in small enterprises
This paper was presented at the 50th World Conference of the International Counsel for Small Business in Washington D.C. by Lars Bager-Sjögren and Hans Lööf on June 15-18, 2005.
Abstract
In Sweden, NUTEK (the national board for technical and business development at that time)
being one of the main actors, supplied conditional loans between 1994 and 2004 to new
technical project mainly pursued in small business. In this study we analyze the development
of the firms supported 1994 to 1997. We compare the population of supported firms with a
population of firms not funded by NUTEK but with the same age, size and business sector
affiliation.
This study differs from other studies in having longitudinal annual report data for both
populations of supported and not supported enterprises between 1990 and 2003. The main
result from the analysis of survivors is that the support to new technical project has had no
effect when considering all supported firms. Also in sub-populations as only independent
firms and independent firms within the manufacturing sector, no positive additionality
emerged.
For new and independent firms, established between the years 1994-1997 there are
increases in sales, increases in employment, increases in productivity and increases in solidity
were all larger for the supported firms than the comparison group of non-supported firms.
There is thus evidence that public support for technical projects may have societal positive
effects but only for a limited population of firms, the newly started and independent ones.
Read the Entire Paper...
TIP OF THE WEEK
Executive Summary: Business Structure
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The most common legal form of business organization among small employers is the Subchapter S-corporation (31 percent). It is followed by the C-corporation (26 percent), the proprietorship (21 percent), the limited liability corporation (LLC) (12 percent), and the partnership (6 percent).
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It is uncommon to change legal forms. Of those who do change, most move from proprietorships to other forms. Changes occur most frequently for liability reasons.
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Boards of directors of small C-corporations typically have three members. Those members appear to have notable business experience and functional expertise. However, boards are more likely to serve in simple fulfillment of legal requirements (68 percent) than as advisory bodies (27 percent).
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A single individual (including a spouse) owns 59 percent of employing businesses. Another 27 percent have two owners. Both the number of owners and the composition of ownership changes little over time.
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Seventy-eight (78) percent of small employers have a single business location (excluding temporary work areas like a construction site). Another 14 percent have two. Most small employers with multiple locations have them exclusively in one state. One percent of all businesses have at least one location outside the Unites States.
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The home, including a garage, basement annex, etc., is the primary location for more than one in four employing businesses. The overwhelming majority of those have fewer than 10 employees. Twenty-six (26) percent with businesses located outside the home have home offices, i.e., a room(s) in the home that is used solely for business purposes.
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Employing businesses are typically open five days a week (52 percent). Just 3 percent are open fewer. The rest are open six (19 percent) or seven (26 percent) days a week.
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Employing businesses are open an average of about 11 hours per day and a median of almost nine. Six percent are open 24 hours a day.
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A management structure (beyond the owner) often appears when businesses have relatively few employees. Thirty-five (35) percent of all employing businesses have at least one person in addition to the owner(s) whose primary job is directing, managing, or supervising others. Two-thirds of firms employing 10-19 people have at least one such person and 80 percent of those with more than 20 employees do.
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Eighty-five (85) percent of small businesses are operated by owner/managers. The separation of ownership and management is most common among larger, small businesses.
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As businesses grow, employees more frequently functionally specialize in their work duties. For example, 36 percent have at least one employee whose sole function is accounting, bookkeeping, or finance. A non-ownership management structure seems to appear before specialized employee functions.
"Executive Summary." Ed. William J. Dennis. National Small Business Poll 4.7 (2004): 1.
CONFERENCES
Center for Entrepreneurship Development - Latin America
The Center for Entrepreneurship Development at Universidad Icesi and the Universidad Javeriana will hold the 2005 Latin America Research Conference on Entrepreneurship (CIELA 2005) in their campus in Cali, Colombia, South America on October 26-28, 2005. The purpose of the Conference is to share the last research results in entrepreneurship obtaioned in Latin America.
For more information, visit: http://www.ciela2005.com
Marketing Management Association
The Marketing Management Association (MMA) will hold its 10th Annual Fall Educators' Conference at the Hyatt Regency Crown Center in Kansas City, Missouri on September 24-27, 2005.
For more information, visit: http://www.mmaglobal.org/Conference/fallConferenceHOME.htm
IPSI-2005 STOCKHOLM
IPSI will hold a conference concerning DataMining and Semantic Web for E-Business on the Internet at the Grand Hotel in Stockholm, Sweden on September 2-4, 2005.
For more information, visit: http://www.internetconferences.net/industrie/stockholm2005.html
European Foundation for Management Development
The European Foundation for Management Development (EFMD) will hold its 35th EISB Conference, focusing on "Sustaining the Entrepreneurial Spirit Over Time: Implications for young companies, family businesses, and established companies," at the IESE Business School in Barcelona, Spain on September 12-14, 2005.
For more information, visit: http://www.iese.edu/en/events/OtrosEventos/EISB/Home/Home.asp
USASBE/SBI 2006 Joint Conference
The United States Association for Small Business and Entrepreneurship/Small Business Institute
Joint Conference will be held at the JW Marriott Starr Pass Resort & Spa in Tucson, Arizona on January 12-15, 2006. The theme for this conference will be "The Changing Entrepreneurial Landscape."
For more information, visit: http://www.usasbesbi2006.org/
CALL FOR PAPERS
College Teaching Methods & Styles
The 2005 International College Teaching Methods & Styles Conference (CTMS) will be held at the Silver Legacy Hotel & Casino in Reno, Nevada on September 19-21, 2005.
Submission Deadline:
August 21, 2005
For more information, visit: http://www.ctmsconference.com/call_for_papers.htm
Journal of Contemporary Business Issues/College of Business & Technology at WIU
The Journal of Contemporary Business Issues and the College of Business & Technology at Western Illinois University will hold its 2005 Conference on Emerging Issues in Business & Technology in Myrtle Beach, South Carolina on November 3-5, 2005.
Submission Deadline:
August 31, 2005
For more information, visit: http://www.wiu.edu/users/micmpd/conference/Papers.shtml
Marketing Management Association
The Marketing Management Association is calling for articles for the fall Marketing Insights newsletter concerning teaching, research, and service.
Submission Deadline:
September 1, 2005
For more information, visit: http://www.mmaglobal.org/
Western Decision Sciences Institute
The Western Decision Sciences Institute (WDSI) will hold its 35th Annual Meeting at the Hilton Waikoloa Village Hotel in Waikoloa, Hawaii on April 11-15, 2006.
Submission Deadline:
October 1, 2005
For more information, visit: http://wdsinet.org
Allied Academies
The Allied Academies will hold its 2005 Fall International Conference at the Riviera Hotel and Casino in Las Vegas, Nevada on October 12-15, 2005.
Submission Deadline:
September 5, 2005
For more information, visit: http://www.alliedacademies.org/vegas-call.html
ANNOUNCEMENTS
2005 Top Small Businesses Survey Information
Southport, Connecticut - DiversityBusiness the nation's leading small business Internet portal will be conducting its 6th annual Top Small Businesses in America survey. This years survey will determine the Top 500 Small Businesses in the United States, the Top 500 Diversity Owned Business in the United States, and for each State the Top 50 Small businesses and Top 50 Diversity owned businesses.
The winners will be announced in September 2005 and will be honored at the 6th Annual Multicultural Business Conference in March 2006. The awards are based on annual sales volume.
To participate, businesses must register by September 15, 2005 at DiversityBusiness
All Small, Women, and Minority owned businesses are encouraged to register. Last years winners received enormous recognition and exposure for their companies.
For more information, visit: http://www.diversitybusiness.com/registration/
The SBANC Newsletter is provided as a service to the members of our affiliates: Academy of Collegiate Marketing Educators (ACME), Association for Small Business& Entrepreneurship (ASBE), Decision Sciences Institute (DSI), Federation of Business Disciplines (FBD), International Council for Small Business Congress (ICSBC), Institute for Supply Management, The International Small Business Congress (ISBC), Marketing Management Association (MMA), Small Business Administration (SBA), Service Corps of Retired Executives, Small Business Institute (SBI), Society for Marketing Advances (SMA), United States Association for Small Business & Entrepreneurship (USASBE), U.S. Department of Veterans Affairs and Western Decision Sciences Institute (WDSI). If you are interested in membership or would like further information on one of our affiliates, please see our web site at http://www.sbaer.uca.edu
SBANC STAFF
Main Office Phone: (501) 450-5300
Dr. Don B. Bradley III, Executive Director of SBANC & Professor of Marketing
Direct Phone: (501) 450-5345, E-mail: donb@uca.edu
Esther Mead, Graduate Research, E-mail: esthermead@gmail.com
Ashley Ford, Development Intern, E-mail: ASHatsbanc@hotmail.com
Brad Lawrey, Development Intern, E-mail: bradlawrey@hotmail.com
Olivia Johnson, Development Intern, E-mail: reneeatuca_2003@hotmail.com
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