Entrepreneurship and SmallMedium Sized Firm

Chapter 7 and 8 The Oxford Handbook Of Entrepreneurship

Robert Cressy - Zoltan J.Acs

Presented By: Fitriyani Mir`ah A. H451110191

Ihr Logo

Determinants of Small Firm Survival and Growth

Chapter 7 The Oxford Handbook Of Entrepreneurship

Robert Cressy

Presented by : Fitriyani Mir`ah Aliyatillah H451110191

Ihr Logo

Author Profile
Who is he?
He is a Professor of Entrepreneurship and

Innovation at Birmingham Business School

He is a Director of the Entrepreneurship

and Innovation Centre

He has published books, articles and journals related to entrepreneurship His research interests are Venture Capital; Private Equity and Innovation; Company Valuation.

Author Profile Page 3

Your Logo

Why we talk about Small Business?

Because they are primarly labor intensive, small business actually create more jobs. Small business also bear the brunt of training workers for them. Although their training programs tend to be informal, inhouse, and on-the job. Small business are incubator of new ideas, products, and services.

(Case study in USA)

Source: Essentials of Entrepreneurship and small business management Scarborough, 2005

Small Business Page 4

Your Logo

THE POWER OF SMALL BUSINESS

Service Retail Construction Whosale Manufacturing Finance Other

A Profil of Small Business by Industry in US - Of the 25 million business in The US today, approximately 24,75 million (99%) can be considered small
Source: Essentials of Entrepreneurship and small business management Scarborough, 2005

The Power Of Small Business Page 5

Your Logo

Small Business in Indonesia

Data Usaha Mikro, Kecil, Menengah (UMKM) dan Usaha Besar (UB)

Tahun 2005 s.d. 2009

Small Business Page 6

Your Logo

DEFINITION OF SMALL FIRM

Based on the numbers of employees of the firm falling below a certain

threshold (Bank of England, 2003).

Combining this threshold with one on sales (Burger and Udell, 1998). Firm was small if it satisfied four criteria: (UKs Bolton

Committee,1971)
1. It was an independent entity i.e. not a subsidiary of a larger firm. 2. It constituted a small proportion of the total market (measured by -

sales) and so had no power to influence price.

3. Its owners and managers were the same people. 4. It had less than 100 employees.

Definition of Small Firm Page 7

Your Logo

GROWTH
Classical theory of the firm growth should be

measured in terms of the change in (discounted) cash flow profits or more exactly wealth maximisers.
However, small business in practice are notorious

for concealing their true profits from the tax authorities for income or corporation tax avoidance.
Hence, GROWTH will refer to a proportionate

change in some firm level variable like employment, sales, or assets expressed as a rate per annum.

Growth Page 8

Your Logo

FIRM EXIT
Perusahaan berhenti melakukan

perdagangan.
Voluntary dijual, dimerger, atau

ditutup oleh pemiliknya.

Involuntary gagal membayar

kewajiban utangnya serta melanggar perjanjian pinjaman.

Firm Exit Page 9

Your Logo

FIRM FAILURE
Bad Luck bangkrut negasi dari tujuan atau tidak tercapainya

wealth maximisation.
ketidakmampuan tim entrepreneur untuk

mencapai tujuan yang mereka tetapkan sebelumnya (Cressy).

Here comes your footer Page 10

Your Logo