SBE Essay Q Flashcards

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Who came up with Small is Beaut approach and what is it?
Rainne et al (1989)- harmonious, happy, satisfied, close working relationships
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Who came up with bleak house approach?
Wilkinson (1999) exploitative, unfair, low pay, unregulated, unsafe
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What is Liability of Newness and Smallness?
Stinchome (1965)-smallest and newest orgs have highest death rate due to lack of expertises and economic innefficiencies associated with being small and young.
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Who said SB pay less?
Oi & Idson 1999
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Who showed diff in earnings between SB & LB & how much?
UK Bolton Report (1971) 20%
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What did Forth (2006) discover about SB pay?
11% employees low paid (£4.50) or less only 5% in LB. SB are more likely to pay unilatterally
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Who found SB have less fringe benefits?
Brown 1990
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What did Belfield 1999 say?
SB have less access to pension funds, health insurance, profit sharing and bonuses.
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What did Wagner (1997) say?
Less holiday entitlement
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What do LBs have in the us that SBs dont?
Wellness programs
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What did Hassle & Limborg (2006) find?
SB more physical, chemical accidents and fatalities.
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Who found a correlation between bus size and fatalities?
Rand 2006
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What percentage of SB owners could not identify H&S information?
63%
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What are the difference in SB & LB training and what scholars?
Forth (2006) 59% formal training 89% in LB
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What did a Spanish study show?
only 11.9% in the smallest companies received any form of training
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What are 2 reasons for differences in training and what scholars?
Barriers (Matalay 1999) Market Based (Storey & Westhead 2010)
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What did Matalay 1999 say about training barriers?
E's negative attitude, lack of awareness and knowledge
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What did Storey & Westhead 1999 say about market based?
Poaching, No EOS, diverse training needs, lack of slack resources, favour the short term, its an informed decision.
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Who are are more satsified?
SB
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What are the signs of higher satisfaction in SBs?
Less absenteeism/avg days off, less violence, harrasment, bullying
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Who found reason attributed to higher sat and what scholar?
Ram 2001 attributed higher satsifaction to informality
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What did Storey 2010 find?
higher satisfaction across all business sizes with higher informality
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What theory did Stinchombe 1965 put forward?
Liability of smallness and newness- higher risk of death/failure due to lack of resources, experiences and economic inefficiencies of small firms
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What did Edwards (2006) say?
Must consider wider context- SB diverse look at sector, culture, location, work patterns , people, decisions of employers and employees.
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Who found the only 44% of businesses founded in 1998 still existed in 2002?
Knaup,2005
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What did Everette & Watson 1998 say?
Businesses close for a diverse range of reasons.
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What are the 5 key explanations of business closure?
Gamblers ruin, population ecology, utility, entrepreneurial learning, resource based.
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What scholar relates to gamblers ruin? and what do they propose?
Cressey 2006- closure based on luck and chance
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What does gamblers ruin say?
Ppl gamble with resources, those with more resources and experience more likely to win, different gambling thresholds but ignores- E talent overemphasis on luck
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What scholars relate to population ecology?
Klepper 2002 & Schumpeter 1934 Porter (1980)
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What is pop ecology?
Environmental patterns low comp, high resource, low barriers attractive, generates comp, SB more likely to fail, structural inertia. less able to withstand shakeout periods/creative destruction.
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What is Entrepreneurial Learning?
Assumption that prior experience has a direct impact on performance and survival (Meizrow, 1991). We learn over time Stinchombe 1965, experience less likely to fail.
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What evidence is there for this?
Some evidence that older and more educated are more likely to have successful closures.
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What are the weaknesses of Entrepreneurial learning?
Data is mixed and reliant on self report.
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What scholars oppose Entrepreneurial Learning?
Metzgeter (2007) previous experience no more likely to survive than novices and bankruptcies more likely to happen again. Everette & Watson (1998) 30-50% closures linked to economic factors not necessarily things individual can control.
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What is resource based and who supports it?
^resources better. Delmar and Shane (2003) lack of managerial resources, Burns (2002) lack of financial control & general resources = closure
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What are some examples of resources & is there evidence?
Networks- mixed evidence Technology- Stearn (1996) increases survival Agarwal (2007)
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What does Harah (2007) describe as failure?
forced economic exit
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What other features of resource based?
VRIN factors- but ignores most SB do not bring something new and overall data to support resource based is limited & weak
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What scholars support the utility approach?
Taylor 1999- 70% business exit in first year for alternative ops and only 15% due to bankruptcy. Bates (2005) alternative ops identified as a key reason.
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What does Berger & Udell 1998 say?
SB rely on internal finance with age, experience & success increasingly able to draw from external.
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According to Fraser (2009) what % of SB used extneral?
Start ups under 2yrs old 84% used internal and 13% loans and subsidised loan
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How many SBs use debt equity according to Berger & Udell 1998?
Only 3%.
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According to Han 2009 what the 3 explanations for the SB finance market
1) information opacity 2) higher fail & default rates 3) personal characteristics/wealth pivotal role
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What is pecking order hypothesis?
Myers (1984) SB focus on internal retained profits & bootstrapping to prevent loss of control.
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How can SBs get over info opacity with banks?
Send signals - relationship, 3rd party, collateral, business plans, credit history, persuade of talent.
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What does Evan & Jovic (1998) say?
Poor & talented credit constrained.
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What the discrimination from banks like?
60% BA 24% whites denied.
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What are interest rates like?
2-3% above base level.
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Explain Agency theory?
Arm-length relationship some banks use draw up legal contracts with performance expectations to monitor incentivize and enforce payment.
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According to Mason & Harrison (2010) what are the return rates of BA & VC
BA 24% VC 1/3 no ROI only 10% ROI of over 100%
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What did Hakin (1989) find?
Surveyed 750,000 SB 55% no plans for gorwth
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What are Ang's (1991) stylised differences?
SB- undiversified, less access to debt finance, no limited liability or capital markets. LB- access to capital market, limited liability, debt finance, diversified portfolio.
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What did Everette & Watson 1998 say?
SB close for a range of reasons.
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What are the ways of measuring closure?
Insolvency/bankrupcty/liquidation, individuals who say so, people who leave SE register, deregisstration from tax, incorporations, business bank accounts
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What are the positives and limitations of bankruptcy data?
Good: official data and can compare Negative: narrow interpretation of closure does not explain why
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What are the positives and limitations of individual surveys?
Good: allows for identification of individuals, find out why. Negative: subject to interpretation, less accuracy, hard to compare, may underestimate.
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What are the positives and limitations of measuring individuals who leave SE survey?
Allows for identification of individuals, but only tracks individuals not businesses, may underestimate.
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What are the positives and limitations of no. of enterprises de-registering?
Sales tax registration only includes LB/businesses with high sales threshold, hard to compare internationally.
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What are the pos and neg o incorporation data?
Excludes small firms with little econ impact, only small proportion of SB are limited liability, some closures are not real busiensses only shells never traded.
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What are the pos and neg of business bank accounts closing?
Data is up to date & accurate, may be hard to combine data, some may just be switching accounts or switching to personal.
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Other cards in this set

Card 2

Front

Who came up with bleak house approach?

Back

Wilkinson (1999) exploitative, unfair, low pay, unregulated, unsafe

Card 3

Front

What is Liability of Newness and Smallness?

Back

Preview of the front of card 3

Card 4

Front

Who said SB pay less?

Back

Preview of the front of card 4

Card 5

Front

Who showed diff in earnings between SB & LB & how much?

Back

Preview of the front of card 5
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