Papers and Authors

Below is a list of the authors and 160 papers that will be presented at the Conference.

A separate list of speakers in the Plenary Sessions will be available shortly.

Papers are listed in alphabetical order by the surname of the lead author. To find a specific co-author use your browser's toolbar - click on "Edit" and then "Find", then input the name you wish to search for. Click on the paper title to view the Abstract, or scroll down the page.

Go to Workshop Timetable to view presentation times for papers.

Papers prefixed with a ® symbol are Refereed Papers and will be printed in the bound copy of Conference Proceedings, which is available to purchase as an optional extra. See Registration page.

P.O. Box LG 78, School of Administration, Legon, Ghana

Tel: +233-24-4633392 Fax: +233 21 500024

E-mail: joshabor@ug.edu.gh

One of the most important problems confronting small and medium sized enterprises (SMEs) concerns the issue of financing. More succinctly, directors and owner managers in SMEs often complain of the lack of finance for what are profitable investment opportunities. In Ghana, the problem of financing SMEs has been of great concern for some time now. This pre-occupation is mainly a result of the important role the SME sector is supposed to play in the development of the economy. This study examined the importance of formal and informal financing of Ghanaian non-traditional exporters (NTEs) and what account for their choice of a particular type of finance. Formal finance comprises of loans from banks, non-bank financial institutions, government programs and foreign loans, while informal finance is made up of credit from non-institutional sources such as relatives and friends, money lenders, informal groups and suppliers. Descriptive statistics were employed in the presentation and analysis of results. The results showed that, Ghanaian NTEs largely depended on formal financing sources. Bank loan was identified as the main source of formal finance while trade creditors represented the highest source of informal finance. Regarding the relationship between the type of finance and the firm level characteristics, the results revealed that, with time firms depend more on formal finance than informal finance. In addition, the study found that, larger firms require more funds to finance their expansion and therefore employ formal finance. No significant difference was found between male-owned and female-owned firm. They all depended more on formal sources of finance. In terms of location, most of the firms relied on formal finance irrespective of their location. Finally, the results of the study suggest that, as firms engage more in international business, they employ more formal finance to finance their operations.

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P.O. Box LG 78, School of Administration, Legon, Ghana

Tel: +233-24-4633392 Fax: +233 21 500024

E-mail: joshabor@ug.edu.gh

The importance of small and medium scale enterprises (SMEs) to stimulate the growth of the any economy cannot be under estimated. However, the capacity of SMEs to generate growth is hindered by a number of constraints notable among them being the lack of access to affordable long term credit. The problem of financing Ghanaian SMEs especially those in the non-traditional export (NTE) sector has been of great concern for some time now. This pre-occupation is mainly a result of the role the SMEs in the NTE sector are supposed to play in the development of the economy. This paper presents a study of internationalization and the financing options of small and medium scale non-traditional exporters in Ghana. The study also examines how age and size of the firm affect the choice of financing. Descriptive statistics were employed in the presentation and analysis of results. The results show that, there is a positive association between debt financing and age of the firm. With time, firms become more acceptable to lenders and therefore older firms are more likely to obtain debt financing than younger firms. With respect to size, the results show that, larger firms are more likely to receive debt financing than smaller firms. The results show a negative relationship between degree of internationalization and debt financing. This suggests that, as firms engage more in international activities, they employ less debt but use more of equity financing. This is explained by the fact that, firms involved in international business may not want to expose themselves to more risk by increasing financial risk which is associated with debt financing. The results generally support existing theory.

fourthposition Ltd., Balgownie Technology Centre, Aberdeen Science and Technology Park,

Bridge of Don, Aberdeen, AB22 8GW

Tel: +44 (0)7770 827275 Fax: +44 (0)8700 940123

E-mail: ken@fourthposition.net

It is well recognised that Small and Medium Size Enterprises (SMEs) play a vital role in the economy. What is not so well recognised is the important part played by micro businesses, with less than 10 employees, within this sector. It is also clear that innovation developed outside large organisations is likely to result in the creation of a start up company which is in the micro company bracket.

Funding innovation within very small organisations has an additional range of problems not often recognised and not easily overcome due to the attitude of the financial sector to risks involved and a perception that micro businesses are ‘lifestyle’ companies which are not contributing to economy generation.

A new approach to innovative micro company set up is required and pioneering work in the Highlands and Islands of Scotland may indicate a solution to the problem. Innovative solutions, at whatever stage of development, can be valued and supported through to a sustainable, commercially viable outcome through a collaborative approach to funding, technology development, marketing and management. The end result is a new business owned by the owners of the original intellectual property and contributing to the local economy.

Many of these opportunities are lost due to projects which stall because of a lack of resources, skills or experience. This presentation will report on the development of PICT Innovation Ltd., a not for profit commercialisation and research company, which aims to adopt innovative projects which are unable to progress due to this situation. PICT works specifically in the Information and Communications Technology field but it is clear that the model can be replicated in other sectors and locations. The organisation has been in place now for two years and shows success in micro company creation in a geographically and economically challenging area.

Craighouse Campus, Craighouse Road, Edinburgh, EH10 5LG

Tel: +44(0)131 455 5045 Fax: +44(0)131 455 6217

E-mail: ma.anderson@napier.ac.uk Web Site: www.napier.ac.uk

In its study in 1999, the British Bankers’ Association stated that, "the provision of micro credit can be a way of helping the economic regeneration of an area by helping people go into self-employment, or to start a small business".

In recent years a large number of micro credit schemes have been established across the UK, often developing out of community initiatives, and also via local government agencies. This paper documents a recent study of those micro credit schemes focussing on lending to new start businesses across the UK, and considers- who benefits from these schemes in 2004? . The study looked at these schemes in the context of supporting new businesses – who benefits from the lending and to what extent? Why do clients access micro credit and why are local councils keen to establish schemes? How do they decide their models of lending? Particular aspects covered are funding sources, management, lending arrangements and the clients targeted.

In the literature the subject area is discussed widely with regard to its practice in the developing world and, to a lesser degree, in the USA. The paper makes comparisons in order to inform current practice in the UK – which will be of benefit to practitioners and academics alike. The issue of financial exclusion in the UK is also commented upon, particularly with reference to micro lending.

The study makes recommendations for micro credit as a tool for new business start-up. It addresses observed shortfalls in provision and operation, and also notes good practice.

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22-24 Mount Charles, Belfast BT7 1NZ

Tel: +44(0) 28 9026 1810 Fax: +44(0) 28 9033 0054

E-mail: m.anyadike-danes@qub.ac.uk

Kingston Hill, Kingston upon Thames, Surrey KT2 7LB

Tel: +44(0)20 8547 7247 Fax: +44(0)20 8547 7024

E-mail: m.hart@kingston.ac.uk

The Small Business Service (SBS) Action Plan for Small Business (DTI, 2004) sets out a framework for a government-wide approach to helping small business. The seven themes within this framework are designed to increase productivity and maximise opportunities for employment and self-employment. The underlying rationale rests with the association between a dynamic small business sector (start-ups and existing businesses) and economic growth.

However, at the regional and more importantly, the sub-regional level, we argue that this association is "conditional" upon, most importantly inherited industrial structure.

Illuminating the relationships between structure and business vitality measures (i.e., births and deaths) provides policy-makers with a more realistic assessment of what can readily be changed, and what cannot, at the sub-national level. It is a ‘plain’ tale in the sense that the data is allowed to speak for itself. Specifically, the narrative has not been organised to fit any prior notions about how enterprise might be connected with prosperity.

Using VAT data on registrations and deregistrations for the period 1993 to 2002 for the UK’s 434 Local Authority Districts and Unitary Authorities (LADs), the ‘story’ is told over three interrelated dimensions: industry; history; and geography and it concerns business birth rates and death rates, for the UK measured using data from the VAT register. We make comparisons over almost a decade, between the register at end-1993 and end-2002.

One of the major conclusions of the paper is that the variation in the contribution of business services businesses accounts for the bulk of the inter-LAD variation in the business birth rate. More importantly, variation in the business services contribution, in turn, is very largely accounted for by ‘history’: the relative importance of business services in a LAD’s stock of businesses at the beginning of the period.

College of Business Administration P.O. Box 9009, Mayaguez P.R. 00681-9009

Tel: (787) 832-4040 x. 2039, Fax: (787) 832-5320

E-mail: asundi-r@rigel.uprm.edu

This paper analysis and evaluates the performance of a number of small enterprises established through a program sponsored by the government of Puerto Rico. This program is identified under he acronym ‘AAFET’ which stands for ("Administración para el Adiestramiento de Futuros Empresarios y Trabajadores") Administration to train future entrepreneurs and workers. The program started in 1985 to recruit and provide training to young people ranging in age from 18-28 years. Program participants who develop an acceptable business plan are provided with startup capital of $1,100 by AAFET.

An investigation of the survival rate and performance of these small businesses created through AAFET program is made utilizing telephone interviews of approximately 40 small businesses from a listing of the enterprises obtained from this agency (approximately 120 firms with telephone numbers). The telephone interview covers aspects of employment, performance and future prospects of the firm. A selected few of these enterprises are visited to conduct in depth personal interview concerning their training in the AAFET program, the functioning of their enterprise and the problems faced by the firm. The personal interview helps to critically evaluate the business operation and its potential for success. The owners’ assessment of the government program and problems faced by the enterprise provides added information.

An analysis of the data and information collected helps to draw conclusions about the performance of the enterprises initiated through this program and their contribution to employment and economic output. Conclusions about the effectiveness of the AAFET program, and the general types of problems facing these small businesses are also made. Recommendations to improve the training program, and a system to assist these small businesses to become successful will be developed.

c/o Lincoln Business School, University of Lincoln, Brayford Pool, Lincoln LN6 7TS

Tel: +44(0)1522 886927 Fax: +44(0)1522 886032

E-mail: aatherton@lincoln.ac.uk

There has been a growth in interest in incubation and an increase in the number of incubators being proposed and developed, both by academic institutions and within the business development intermediary network. Typically, new initiatives seek to generate high potential start-ups, often knowledge-based or –driven, in emergent sectors and new markets. Clear and established methodologies for determining the feasibility of incubators, however, appear to be lacking, with ‘know-how’ in this area confined to the tacit knowledge and experience of commissioned consultants and only partial sharing of approaches and analytical methods.

The paper seeks to develop an holistic methodology for assessing the feasibility of establishing a new incubator. The starting point for this approach is to develop estimates of local demand within the potential area of operation of a proposed incubator, based on a re-basing of VAT registration rates to take into account the large number of new ventures that start up below this threshold. These estimated calculations of local demand are considered spatially, i.e. in terms of the propensity for new starters to travel limited distances to locate themselves in an incubator. By modelling a geography of incubator take-up, the method provides a series of spatial ‘markets’ for new incubators that constrain overall demand for a particular location. Viable local markets for an incubator are calculated, as such, by minimum levels of start-up activity that can support sustainable demand for incubation space, facilities and services.

Based on the identification of sustainable, local ‘markets’ for incubators, multiple scenarios for (1) nature and patterns of demand and (2) type and format of incubator can be developed. A starting point for this activity is to determine local construction costs for different types of incubator, and then to identify develop funding strategies and services offer. All four conditions can be combined to generate multiple potential scenarios for a specific incubator. Feasibility is then assessed by using a customised profit and loss format that is appropriate for and sensitive to incubator development.

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Brayford Pool, Lincoln, LN6 7TS

Tel: +44(0)1522 886927 Fax: +44(0)1522 86032

E-mail: aatherton@lincoln.ac.uk Website: www.lincoln.ac.uk

Successful university spin-outs require and are a result of a multiplicity of factors, activities and inputs. The inherent complexity associated with this phenomenon and with their processes of emergence and formation raise a challenge for higher education institutions, in terms of: (i) how to establish and manage an appropriate and effective strategy for encouraging spin-out activity; and (ii) how to ensure that the design of such a strategy, and related policies and procedures, is based on previous evidence and experience of ‘what works’ and why. This paper draws on a broad cross-section of the literature on university spin-outs, with particular reference to their critical success factors and dimensions. A ‘component model’ consisting of six dimensions of successful spin-out is presented and each component explored in detail. Key conclusions from the framework are: (i) it can potentially be used as a ‘template’ or guide when designing and developing effective spin-out strategies; (ii) it provides a framework for assessing established and existing strategies in higher education institutions that can be used for cross-reference and comparison across universities; (iii) the framework also offers the structure or basis for a professional development and skills programme for technology transfer and other staff engaged in facilitating and supporting spin-outs.

Baugh Center for Entrepreneurship, One Bear Place, Waco, TX 76798-8011 USA

Tel: +1 254 710-4156 Fax: +1 254 710-2271

E-mail: Ray_Bagby@baylor.edu

With the increasing opportunity afforded by electronic submissions at most journals and the increasing pressure to "publish or perish" that seems to be on the rise at higher education institutions in Europe, more authors are submitting to a wider circle of journals. However, there are differences between the ways research has traditionally been reported in the United States vis-à-vis Europe. Therefore, European authors could benefit from a detailed explanation of the process for getting published in US-style journals.

The symposium will present information about how to prepare the manuscript properly and to select the appropriate journal to which to submit in order to increase chances for acceptance. Ways to handle reviewer and editor comments during revisions will also be included in the discussion, as well as what to do if the manuscript is rejected at a particular journal. The presentation will provide comments and advice for both quantitative and qualitative approaches.

The plan is to invite other journal editors who may be attending the meeting to attend and to participate in an extensive question and answer period following the initial presentation. They will be able to answer specific questions concerning their journal as well as provide answers to general questions.

This type of symposium has been found to be very informative and well-received at a variety of meetings in the US.

Ladbroke House, 62-66 Highbury Grove, London N5 2AD

Tel: +44(0)20 7133 5105 Fax: +44(0)20 7133 5123

E-mail: s.bagwell@londonmet.ac.uk Web Site: www.citiesinstitute.org

There has been considerable debate in the small business literature on the significance of culture in shaping the experience of starting and sustaining black and ethnic minority enterprises. UK based research, however, has focused on the larger more established communities. Little is known about the particular issues facing new business communities such as the Vietnamese, who are now making a significant contribution to the local economy in east London and elsewhere.

This paper reports on the early findings of a study that is exploring the influence of traditional Vietnamese culture on the business practice of Vietnamese entrepreneurs in London. Focus groups and in-depth semi-structured interviews were undertaken with first and second-generation owner managers from a range of business sectors. These were analysed to identify key cultural issues that appeared to impact significantly on business practice. Initial analysis suggests that the role of the family, trust and language are key themes that influence the start-up and operation of the businesses. The relative importance of these three factors appears to vary between the older first generation (the original "boat people"), the UK educated second-generation, and younger more recent immigrants. Whilst second generation owner managers demonstrate a greater degree of individualism and rely less on trusted networks they are still heavily influenced, and often constrained, by traditional family values and obligations. For these businesses the ability to balance these sometimes conflicting demands of community/family and business is crucial. This requires a different set of skills to those commonly promoted in individualistic business support strategies.

These findings offer important lessons for those seeking to provide support to lessor understood business communities such as the Vietnamese. They emphasize the need to take account not only of inter-cultural differences, but also the intra-cultural differences that exist within different ethnic minority groups.

Campus Universitario, 36570-000 Vicosa, Minas Gerais - Brazil

E-mails: t.barbosa.@tees.ac.uk or telma@ufv.br

Research on SME internationalisation has been mainly normative and deterministic, grounded in the international marketing perspective of larger firms, and concerned with three major issues: 1- export decision associated factors 2- export behaviour and performance determining factors; and 3-successful export strategies. This paper builds on the criticism that SME internationalisation research lacks theoretical foundation and proposes the network relationships perspective as a foundation for theory development. To this end, three issues are considered: SME internationalisation as a strategy of international exchange and growth, which evolve on the basis of multilateral relationships; appreciation of the role of network relationships to SME internationalisation; and propositions for a meticulous research agenda.

Research has established network relationships as a significant factor in SME growth and development in domestic markets and on the internationalisation of new, high technology small firms, called "Born Globals". There has been some research considering network issues on SME internationalisation, but none so far has attempted to examine and explain in detail the process of SME internationalisation on the context of evolving network relationships. The paper identifies and discusses a number of research propositions concerned with how SME internationalisation process is manifested in the context of network relationship. It focuses on how network relationship influences SMEs’ decisions on international market entry, exchange partner selection, international market knowledge acquisition and internationalisation strategies. Consideration is also given on international network relationship formation, development and management. Finally the paper discusses on methodological issues and research contributions to knowledge. A qualitative approach, alongside explanation and theory building methods to investigations is discussed. It is argued that investigations on the proposed lines will meet the longstanding need to understand SME internationalisation and point to more efficient and effective ways of supporting SME internationalisation.

Department of Geography, Downing Place, Cambridge, CB2 3EN

Tel: +44 (0)1223 333399 Fax: 01223 333392

E-mail: rjb7@cam.ac.uk

The Robert Gordon University, Kaim House, Garthdee Road, Aberdeen AB10 7QE

Tel: +44(0)1224 263890

E-mail: p.robson@rgu.ac.uk

Business Link, originally established in 1993, has undergone major change to become a franchise structure. Franchisees must act as independent bodies with BL as their "only line of business". Yet franchisees are of various types: some are de facto partnerships, some are linked to chambers of commerce, some are linked to other bodies, and some are private sector companies. Although all BLs are arms’ length of any related organisation, and work to a standardised contract and target regime, it is possible that the type of franchisee makes a difference to the management of the franchise, how the targets are prioritised, and how this affects referrals and links to other service providers. This in turn could be reflected in the market penetration and user experience of BL. This paper assesses the influence of the type of franchisee on BL market penetration, impact and customer satisfaction. The paper uses the large-scale survey from the Cambridge Centre for Business Research adopting econometric methods to control for differences in client type (size, sector, etc.) whilst isolating the influence of the franchisee. The results of the analysis have important implications for how BL franchises are developed under the new regime of RDA contracts. The paper concludes with an assessment of RDA priorities by region.

Rotherham Youth Enterprise, Rotherham International Centre, Simmonite Road,

Kimberworth, Rotherham, South Yorkshire, England. S61 3EN

Tel: +44(0)1709 300202 Fax: +44(0)1709 300201

E-mail: martyn.benson@rotherham.gov.uk

Mission statement: Need for a genuine mission statement based on an inclusive strategy. The selected statement: "Empowering Young People ……."

Brief History: Started 1988. Problems of catchment area (decline of coal and steel). Initial service. Development into office and workshop provision. Expansion into local Schools (primary and secondary) encouraging awareness of ‘enterprise’. Working with local University. Other promotional activity. Appointment of specialist ‘in house’ Adviser. ICT training for potential young entrepreneurs.

Pre-start scenarios: Advice and counselling at earliest possible stage of a business. Direction to appropriate trainers, funders and support services.

‘Start-ups’: Eligible start-ups supported with advice, counselling and training.

Day to day operation at workspaces: Businesses supported with grant funding to offset rental and services costs. Full clerical support facilities plus practical business advice.

Importance of ‘Networking’: On clients’ behalf, networking with numerous agencies, funders, organisations, colleges and universities.

Examples of supported businesses: Information on supported businesses.

Achievements: 80% survival rate for businesses from workspace. The ‘unemployable’ and ‘difficult to employ’ in gainful employment. Overcoming historical and cultural barriers.

Interaction with 3,700 pupils aged 13-19 and 1,000 under 13s in 2002/2003. R.Y.E. supported ‘winners’.

The future: Too many cooks? Ideally a change to ‘mainstream’ funding. If not, try to retain ‘external’ funding.

Jubilee Campus, Wollaton Road, Nottingham NG8 1BB

Tel. +44 (0)115 846 5274. Fax +44 (0)115 846 6650

E-mail martin.binks@nottingham.ac.uk. Web site: www.ukbab.ac

This paper considers the development of on-line business surveys and their triangulation in terms of the contribution that they could make towards increasing the knowledge stock and therefore entrepreneurial opportunity recognition and its realisation in SMEs. All things being equal this will lead to improved efficiency in the allocation of resources and enhanced economic performance and competitiveness.

Many government policy initiatives designed to support SMEs and their development are based on the fundamental principle of improving the stock of knowledge through knowledge transfer. In particular many of these initiatives rely upon business advisers for this purpose. The ways in which advisers accumulate knowledge and transfer it are key determinants of the impact that such advice may have on individual business performance.

The concepts of knowledge stocks and knowledge transfer are in common usage but often in the absence of clearly defined meaning. A theoretical approach suggests that ‘shared discovery’ and ‘knowledge sharing’ have an unambiguous positive net impact on the stock of knowledge. Other frequently adopted modes of knowledge transfer may be less effective or even counter productive. If we assume that increases in the stock of knowledge are positively related to economic performance and competitiveness, then this theoretical approach has implications for the efficiency of the knowledge transfer process.

The paper will outline briefly the theoretical framework referred to above. The motivation for establishing the Business and Business Adviser Barometers and their historical development will be explained alongside a description of their operations and functionality. The scope for further expansion and improvement will be presented in conjunction with an identification of the main impediments and constraints upon such development as experienced to date. The paper will then explore the present and future potential of this approach in terms of its contribution towards evidence based policy development and evaluation.

Staffordshire University, Beaconside, Stafford, UK ST18 0AD

Tel: +44(0)1785 353806

E-mail: c.j.birch@staffs.ac.uk Web site: www.staffs.com

In April 2003, Country Life commented that Staffordshire was the worst county to live in within the UK. The basis of this assumption was fundamentally flawed, in that the research methodology reflected journalistic creativity rather than a serious academic study. However, underneath the headline lie issues that do need to be taken very seriously.

Staffordshire was at the very heart of the Great Industrial Revolution. Sadly, the industries upon which this was built, have, to an extent, become metaphoric millstones around the ‘regional neck’. The ceramics, agricultural, brewing, automotive and associated engineering, industries are all in sharp decline as the global economy imposes new models of production that give others greater competitive advantage. Coal mining ceased to exist ten years ago. Much regeneration work has taken place to build a new prosperity base, and this has been very successful in some areas, but less so in others. Particular problems remain in the northern part of Staffordshire, especially in Stoke on Trent, but there are also many smaller and less evident pockets of systemic decline, including rural communities, where populations are rapidly ageing and where there is neither work nor opportunity for younger generations to have a reason to remain. This of course leads to a spiral of rapid decline with no shops, no schools, poor public transport, diminution of quality in housing stock and a general demise in that which makes an effective community function.

Economically, Staffordshire performs at less than 80% of the norm established by the OECD. In terms of health, life expectancy is lower than average. Teenage pregnancy is amongst the highest in the UK; Crime statistics, both petty and serious, are worse and rising faster than relative comparators. There is evidence of political ‘extremism’ taking hold in some districts. Educational achievement in some areas is well below national benchmarks. Alongside this, educational aspiration and expectation do not indicate self belief, confidence and a ‘can-do’ culture, which were essential underpinning factors in creating nineteenth century prosperity.

We need to get this back, and Staffordshire University have made it a key part of their mission to identify and nurture entrepreneurial flair. We have adopted many strategies to achieve this. This paper will discuss and reflect on enterprise and entrepreneurship initiatives that will help to recreate the success of the past by building on the creativity and innovativeness of our people.

Kingston upon Thames, Surrey KT2 7LB

Tel: +44(0)20 8547 7247 Fax: +44(0)20 8547 7140

E-mail: r.blackburn@kingston.ac.uk

The Gateway, Leicester. LE1 9BH

Tel: +44(0)116 257 7912 Fax: +44(0)116 251 7548

E-mail: mram@dmu.ac.uk

Notions of social inclusion and the need to combat social exclusion have become popular areas of attention in academic and policy circles. The importance of small firms and entrepreneurship as a means to raising inclusion has been emphasised in these new agendas. A priori, there are a number of reasons why small businesses may be regarded as providing opportunities for social inclusion. However, in this paper we argue that the recent expectations of the role of small firms and entrepreneurship in combating social exclusion are over optimistic. We question some of the assumptions on which these expectations are based and suggest that attention should start by a clearer understanding of the concept of social exclusion. Individual economic strategies, in the form of small business activity, can make some contribution but because of the multidimensional nature of social exclusion, care should be exercised in making exaggerated claims and presenting small business ownership as some sort of panacea. When these claims are not achieved there may be a danger of a backlash against the promotion of business ownership. This paper draws on secondary evidence and concludes with implications for policy and suggestions for further research.

174 Chantry Crescent. Birmingham UK. B73 7PE

Tel: +44(0)121 360 3018 Fax: +44(0)121 628 8150

E-mail: d.blisson@aegisassociates.com Web site: www.aegisassociates.com

The Women’s Enterprise Strategic Framework was launched by the Small Business Service in England in May 2003. The Small Business Service took lead responsibility for the development of the Framework, which was drafted in consultation with PROWESS, the lead trade organisation for women’s enterprise support providers. The strategic framework focuses on four main elements of activity which impact on women and their potential to start and grow businesses. These are:

The Business support provided to women;

Access to finance and financial services for women;

Childcare and caring responsibilities faced in the family; and

The transition from state benefit regimes into paid employment.

The overarching targets set in the Framework are that:

By 2006, women will account for 40% of customers using government sponsored business support services;

By 2006 women owned businesses will account for 18-20% of the UK total (currently 12-14%);

By 2006, the number of women from ethnic minority communities receiving business support assistance will be proportional to their representation in the relevant local/regional population.

Given these targets, there is now a greater imperative to collect statistical information on the participation of women in enterprising activity in England. For the first time, gender disaggregated data is to be collected, on the use of public sector agencies by potential and existing women entrepreneurs. Historically such data has been aggregated and the true picture of the state of women in business in England hidden. This paper seeks to provide an insight into the real state of female entrepreneurship in England today, through offering initial findings of recently commissioned research and data in the country.

Bishop Hall Lane, Chelmsford, CM1 1SQ

Tel: 01245 493131 Fax: 01245 607540

E-mail: s.bloomfield@apu.ac.uk Web site: www.apu.ac.uk/cbt/sb.htm

A case-study of the management strategies and techniques of a specialised UK business dedicated to creating wealth by producing technical solutions to industrial problems and then spinning these off into separate stand-alone businesses. The parent business has achieved very high levels of organic growth in turnover and profitability from an initial shareholder-funded start, as well as successfully establishing a number of off-spring businesses in highly-specialised areas by securing outside finance. The guiding principle of the parent business is to use existing technologies to solve technical problems rather than develop new technologies. Accordingly, given that the parent appears to be successful, that it has successfully established off-spring which are separately funded and that it is not operating at the boundaries of new technology but inside them, it provides a model of successful start-up strategies. It was hypothesised that the business’s success might provide an insight into factors that contribute to the successful creation of new ventures. Consequent upon this, an examination of the evolution and development of the management strategies of the business might be used to illuminate the specific factors required for the successful development of technology-based start-up ventures as well as general factors that may be germane to the development of all small ventures. As a result four additional critical factors are identified beyond the current essential – but limited -- pre-occupations of adherence to the business plan and proper financial control, involving the business concept; the business culture; the speed of development and the size of the venture.

Aytoun Street, Manchester, M1 3GH

Tel: +44(0)161 247 3954 Fax: +44(0)161 247 6911

E-mail: k.boles@mmu.ac.uk Web site: www.business.mmu.ac.uk/businessservices/nes

12, Stephenson Court, Fraser Road, Priory Business Park, Bedford, MK44 3WH

Tel/Fax: +44(0)1234 831623

E-mail: george.derbyshire@nfea.org.uk Web site: www.nesprogramme.org

In his 2004 Budget Statement, the Chancellor the Rt. Hon. Gordon Brown, announced funding to provide scholarships for UK entrepreneurs from the New Entrepreneur Scholarship (NES) programme to study at US business schools. Despite objections from a top UK business school, the Chancellor’s initiative resulted in an inaugural two-week intensive summer school at Babson College, Massachusetts. The New Entrepreneur Transatlantic Scholarships UK (NETS UK) inaugurated in June 2004 is a phenomenal success.

The teaching and learning pedagogy is based on the case study method and the data collected from the participants is very supportive of the programme: ‘the American way of doing business is so positive’, is typical of the responses.

NES Ambassadors (as the entrepreneurs who went to Babson are called) have very clear ideas on how they might contribute to entrepreneurship in England. They returned from their Babson experience enthused, energised and significantly more ambitious in wanting to further their own businesses and in wanting to contribute to the national enterprise culture.

This best practice seminar re-tells the success story of the New Entrepreneur Scholarship programme, the development of the NETS-UK relationship and offers a critique of entrepreneurship teaching and learning based on interview and journal data collected from the entrepreneurs.

STEP Business Centre, Wortley Road, Deepcar, SHEFFIELD, S36 2UH

Tel: +44(0)114 290 3600 Fax: +44(0)114 290 3605

E-mail: gavin@stepbusinesscentre.co.uk Web Site: www.stepbusinesscentre.co.uk

If the UK is to develop as a knowledge economy we require a highly skilled workforce with the ability to undertake 'Life Long Learning'. Government strategies to encourage SMEs to develop a learning culture clash with the existing culture of learning within small businesses. The existing culture is driven by the entrepreneurial nature of the organisation and is an integral part of the desirable characteristics of SMEs. Understanding of these issues has been developed through the delivery of a Learning & Skills Council project to Engage Employers with the Government’s Skills for Life agenda.

The regeneration of a community badly affected by job losses in the steel industry requires a focus on the development of new skills and knowledge to develop economic diversity. The widening of the skills base of the community can only be hampered by a workforce with low literacy and numeracy levels. The project has demonstrated that the Government’s focus on qualifications does not match with traditional learning styles within SMEs. The present government funding for Skills for Life training within SMEs is falling foul of the learning culture and preconceptions that hold sway with SMEs.

This paper suggests that in attempting to prepare the UK workforce for the knowledge economy government strategy risks undermining our ability to develop a successful knowledge economy. The STEP Skills for Life project provides case studies of the problems and issues for small companies that result from the push to increase knowledge, learning and skills in SMEs. This first hand experience is combined with recent research to provide a primae facie case for a re-examination of the utility of 'engaging' with SMEs on this topic. Through learning from our mistakes we will be using the most common of all SME learning styles, that of Trial and Error.

Pontypridd, CF37 1DL

Tel: +44(0)1443 483292 Fax: +44(0)1443 483560

E-mail:dbrooksb@glam.ac.uk Web Site: www.glam.ac.uk/bus/Research/ResUnits/WEI/wei

The paper describes the Cyfenter Development Partnership which is aimed at inclusive entrepreneurship for under represented groups in Wales. The programme is funded by the Welsh Development Agency and the EQUAL stream of the European Social Fund to inform and develop inclusive policies and practices within the mainstream enterprise support in Wales.

Cyfenter brings together the key players in enterprise support including policy makers, experienced equalities and enterprise practitioners as well as those groups who are currently under represented in enterprise. These include women, lone parents, young people, over 50’s, ethnic minorities, refugees, disabled people and Welsh speakers. This enables the partnership to actively engage in debating potential solutions to the barriers.

By empowering excluded entrepreneurs it is anticipated that policies and practices can be leveraged where enterprise support is more relevant and appropriate for all groups in society. It is hoped that this will lead to an increase in the proportion of under represented entrepreneurs accessing enterprise support.

The paper identifies the typical needs of under represented groups when establishing a business, barriers to success and indicates to policy makers the solutions which are needed to remove existing barriers. The methodology of the study has been developed to measure the impact and benefit as well as to assess the quality of activities to identify good practice. A matrix indicator is described which has been developed linking the project to the six key principles of the EQUAL Initiative (ESF). Finally, conclusions are drawn and recommendations made on enhancing and improving the activities of under represented entrepreneurs.

City Campus, Sheffield, S1 1WB

Tel: + 44(0)114 225 3084

E-mail: s.j.s.brown@shu.ac.uk

Sheffield Hallam University is committed to the development of not only highly employable graduates but also enterprising ones. While it is articulated in our Vision and Values statement, this has now been turned into a series of policy and strategy documents to benefit the whole student population.

Teams of academics from across the University formed into formal and informal groups to establish clear definitions for the much misunderstood "e" words namely employability, enterprise and entrepreneurship.

We started with those skills and attributes which relate to the enhancement of lifelong employability and reflect research on the graduate attributes sought by employers: intelligent, flexible, self-aware lifelong learners with communication, interactive and team working skills, who add value to and transform organisations. This resulted in the development of a framework paper for our academic board which specifies curriculum features that, together, develop student employability. Its coherent conceptual base draws on a model of employability development, and is firmly rooted in relevant literature, our research, and many years of practice. We then identified additional skills to those for employability which identify enterprising students; this allowed us to develop a separate strategy paper, "Enterprise in the Curriculum", for the University to augment the employability framework.

Armed with these two policy and strategy documents academic champions have been identified by the Enterprise Centre of Sheffield Hallam University to work across the four faculties to mentor colleagues in proven methods and techniques. The champions have practical experience of programmes which span subjects, modes and levels, with differing, innovative practices. There are now documented and evaluated activities which will be presented to show the progress achieved to date.

IADT, Carriglea Park, Kill Avenue, Dun Laoghaire, Co. Dublin.

Tel: +353 1 2144623. Fax: +353 1 2144763

E-mails: Josephine.browne@iadt.ie; Therese.moylan@iadt.ie; annie.scaife@iadt.ie

This paper seeks to highlight and discuss two related issues pertaining to female entrepreneurs, using recent Irish research. The first strand of the argument seeks to link the well trodden debate on equal opportunities and gender in the labour market to female disadvantage as entrepreneurs. This paper argues that the issues which drive women from the labour market and into self employment negatively impacts on their performance as entrepreneurs - out of the frying pan and into the fire syndrome.

The second strand critically evaluates aspects of EU and Irish enterprise policy and its impact on the female entrepreneur. The EU aims to become the most competitive and dynamic knowledge-based economy in the world. A core value of E.U. policy is that it promotes business start-ups, particularly among target groups such as women and the unemployed. This objective is articulated in economic and enterprise policy as moving up the value chain which involves the development of more technologically orientated industries where women are minority stakeholders either as owners or employees. It is implicit in this policy that all participants will have acquired a high level of technical skills and literacy.

This paper argues that female entrepreneurs in Ireland and Europe come to the world of entrepreneurship with double disadvantage. In the first place, the skill set they have acquired through employment lacks critical business acumen. Secondly, the sectors to which they migrate are predominantly low tech service with limited growth potential. This paper will argue that economic policy and enterprise support policy contributes to the perpetuation of disadvantage for female entrepreneurs. This paper is based on research findings arising from field work carried out in the Dublin Region between 2003 and 2004.

Kill Avenue, Dun Laoghaire, Co. Dublin

Tel: +353-1-214 4785 Fax: +353-1-214 4763

E-mail: josephine.browne@iadt-dl.ie Web site: www.iadt-dl.ie

Nutgrove Enterprise Park, Nutgrove Way, Rathfarnham, Dublin 14, IRELAND

Tel: +353-1-494 8400 Fax: +353-1-494 8410

E-mail: georgina@venturepoint.ie Web site: www.venturepoint.ie

Within the discourse on the information society, the e-economy and the importance of innovation, ICTs are seen as major tools with the potential to fundamentally change business behaviour and company strategies. The main aims of this paper are to explore and critically evaluate the link between e-learning and e-business, and in particular the link between business growth and capacity building through e-learning technologies and methodologies. We will look at ways of assisting micros and SMEs to attain their full growth potential through capacity building and will refer to research carried out in Irish and Canadian SMEs with experience of e-learning and draw conclusions from this research.

While e-learning often offers a solution to training problems especially for micros, this solution can also create barriers to learning – such as lack of hardware, fear of technology, and learner isolation. How can the entrepreneur address these constraints? Frequently participation levels in mainstream enterprise training are low with one of the main reasons offered being lack of time. This paper proposes that e-learning would appear to be an ideal solution to the Owner Manager dilemma facing the challenge of growing the business and his/her management development skills.

This paper proposes a roadmap for European SMEs and micro enterprises, to assist them to make a significant contribution to the European goal of becoming the most competitive global economy. Finally, solutions to help entrepreneurs to overcome barriers identified are explored.

237 Old Hope Road, Kingston 6, Jamaica W. I.

Tel: +1 876-927-1680

E-mail: mbowen@utech.edu.jm

The Policy of the Micro-Sector of the Government of Jamaica states that the Government of Jamaica intends to provide the framework for the expansion and development of the micro-sector to enhance its contribution to economic growth and development utilizing a number of strategies.

This paper considers the qualities, skills, competencies and infrastructure one needs to have in place to build entrepreneurial and small businesses. It begins with an overview of Entrepreneurship development in the field of vocational education and training in Jamaica and continues with an analysis of the new initiatives being taken by the Government and institutions such as HEART NTA and the Technology Innovation Center at the University of Technology, Jamaica.

Skills needed and the lack thereof specific to entrepreneurship and small businesses are analyzed from various perspectives including, owner-manager, policy makers, employees and institutions.

Data gathered by the authors from both telephone interviews and focus groups has been analyzed by the use of various quantitative and qualitative methods. Preliminary results revealed that attitudes to vocational education and training are positive but the actual framework necessary to build small businesses to foster the kind of growth and development for a country is grossly underprovided.

What does it take then to build entrepreneurial and small businesses other than a mechanistic framework? It takes a combination of innovative thinking, ambition for self-sufficiency, enthusiasm and recognition of talents as well as shortcomings. Above all, a professional outlook and modus operandi is required.

School of Information Systems, PO Box 14428, Melbourne City MC

Melbourne, Victoria, Australia, 8001

Tel: +61 3 9688 4007 Fax: +61 3 9688 5024

E-mail: Stephen.Burgess@vu.edu.au; Carmine.Sellitto@vu.edu.au: Andrew.Wenn@vu.edu.au

This paper examines participation in regional industry clusters and the use of portals by small businesses as a means of maximising the benefits of regional partnerships. Literature relating to industry clusters is examined to identify the major economic and industrial reasons for participation in them by small businesses. Similarly, the benefits of portals to small businesses are examined to identify the benefits that they can offer for regional partnerships. Interestingly, there has been little work on the link between regional clusters and portals – so this is examined in the paper. A case study of the use of a portal by a regional wine industry cluster in the wine region of Gippsland in the State of Victoria, Australia, is examined to highlight the benefits that portals can provide to regional partnerships. This particular portal actually enhanced the relationship between ‘competing’ small wine producers in the area and led to an increased flow of informal information between them. There are also examples of the presence of tourist, accommodation and restaurant information on the portal, which means that the individual participating wineries did not have to include this information on their individual web sites. The paper also highlights the introduction of the ‘Gippsland Dozen’, a combination of wines from different wineries sold as one ‘product’ on the portal site. This was set up as a result of the portal and almost certainly would not have occurred without it.

School of Information Systems, PO Box 14428, Melbourne City MC,

Melbourne, Victoria, Australia, 8001

Tel: +61 3 9688 4007, Fax: +61 3 9688 5024

E-mails: Stephen.Burgess@vu.edu.au; Carmine.Sellitto@vu.edu.au: Andrew.Wenn@vu.edu.au

This paper reports on research that used the case study method to investigate the web features that were perceived as being valuable by a group of ten Australian regional accommodation proprietors (located in the Bendigo Region in the State of Victoria) and how the success of these features was established. The research identified that promotional content is the most highly valued Web site feature— with content relevant to customer support activities and online transactions having lower rates of implementation. The study also reports that many of the businesses use a sub-domain name of the regional business web central directory on which they host their sites. All case participants derived positive benefits from operating their site, with customer feedback and increased bookings being a primary way for determining Web site success. The results supported the conservative nature of very small businesses in relation to their use of IT and the Internet. Respondents indicated that they preferred to put information on their web sites that was specific to the business, involved minimal effort and provided some benefit. A review of the evaluation techniques used by the businesses revealed that they had an understanding of the importance of maintaining a customer focus when evaluating the success of the Web site and that they had judged their web sites to be successful, based mainly on positive customer feedback, increased patronage and direct cost savings.

Kent Business School, University of Kent, Canterbury CT2 7PE

Tel: +44 (0)1227 827094 Fax: +44 (0)1227

E-mail: D.F.Butler@kent.ac.uk

This paper examines the barriers that inhibit training uptake in small firms and analyses the results of a practical project aimed at overcoming those barriers. The paper originates from an observation of the relative proportions of students on management and professional courses from large and small organisations in South East Kent, where 97% of businesses employ fewer than 20 staff, but where a two-year survey at a local Further Education College revealed 98% of those students as coming from firms with over 250 employees.

A second phase involved 121 structured interviews with small firms to explore the barriers that inhibit training uptake in those firms. As expected, the interviews proved a need for short low-cost courses, delivered locally and outside of working hours to avoid the need for staff cover. Most important was the need to achieve immediate and tangible payback for time and effort invested. Preferred training topics included sales & marketing skills, finance (basic accounts & budgeting) and legal compliance (risk-assessment, employment law). Market awareness of training options was generally poor indicating that traditional marketing by FE colleges was failing to engage small firms. A useful outcome was the positive response to cold-call visits (just 150 to achieve 121 interviews), proportionately far better than is normally achievable by telephone calls or mailings, and indicative of a potential alternative means of promoting training to those firms.

Stage three of the research comprised a European Social Fund project aimed at contacting and collating data from 4500 small firms, offering free Training Needs Analyses, and identifying appropriate training to meet their business needs, delivered via a flexible rolling programme of short courses. The project achieved all of its targets confirming the value of face-to-face marketing, the rate of small firm participation in management development increased significantly, and the emerging pattern of training needs led to the development of a new suite of innovative training modules for small firms.

The findings of the primary research combined with the outcomes of the ESF-funded project suggest the need for a rethink of the way in which training programmes are designed, to focus content on meeting practical business needs, and delivery on modular provision that small firms can access in a flexible manner.

Departament d’Economia de l’Empresa, Edifici B. 08193 Bellaterra, Barcelona. Spain

Tel: +34 935 812 268 Fax: +34 935 812 555

E-mail: joanlluis.capelleras@uab.es Web Site: http://www.uab.es

University of Warwick, Coventry, CV4 7AL, United Kingdom

Tel: +44(0)24 7652 3918 Fax: +44(0)24 7652 3747 

E-mail: kevin.mole@wbs.ac.uk Web Site: http://users.wbs.warwick.ac.uk/group/csme

England and Spain differ in the way in which they regulate entry by new firms. We may expect that the subsequent performance of new firms in these countries to reflect this. In this research we compare factors which influence start-up size and those that influence subsequent employment change of new businesses over four years in selected areas of England and Spain. Data was collected by face-to-face interviews with 231 English and 182 Spanish firm founders using the same questionnaire in the two countries. In order to provide a full explanation of start-up size and employment change, explanatory variables are based on conditions observable at the pre-, at- and post-start stages.

First, a multiple regression analysis is estimated to identify the determinants of initial size of the firm. Results show that start-up size is strongly influenced by the starting resources of the entrepreneur and industry effects. However, different human capital variables influence start-up size in the two selected countries.

Second, four groups of firms were subsequently identified in terms of their employment change in both samples (decliners, statics, slow growers and fast growers). Surprisingly, the biggest firms at start-up are those that have job losses. These firms converge over time with a group of slow growers. Neutral employment change is observed in a group of mainly sole owners and there is also a group of fast growers. The determinants of these four groups were then analysed using an ordered probit model. Results show that start-up size is highly significant in explaining all patterns of change. Fast-growing firms are reflected in several factors in both countries, such as formal planning, workforce training and owner managerial skills. Different results are found regarding founder-specific characteristics, use of external advice and sources of finance.

Findings indicate that new firms learn as they age and there is, therefore, an adjustment process of employment size over time. Findings also suggest that new firm growth will depend on the entrepreneur’s ability to acquire skills through learning-by-doing.

Business School, Room G220, Galton Building, Perry Barr, Birmingham B42 2SU

Tel: +44(0)121 464 6167

E-mail: charlotte.carey@uce.ac.uk Web Site: http://www.uce.ac.uk

The creative Industries have a high proportion of Self-employed practitioners and micro businesses. 43 % of employed people in the Creative industries are either self-employed freelance practitioners or operate micro businesses. However research suggests that there is a short fall of Black Minority Ethnic (BME) individuals making the successful transition into self-employment in these industries. For example Only 3% of freelancers in broadcasting, TV and video are from ethnic minority communities.

Throughout the UK local authorities and Regional Development Agencies (RDA) have recognised the value and economic significance of the Creative industries and are working on ways of developing them. This paper is an empirical investigation into how creative BME individuals can be moved into successful self-employment, at a local level.

This study is based on a national, European funded; research and development project, specifically looking at Social inclusion on the Creative industries. The research was based on observing twelve individuals recruited by an intermediary organisation. They took part in a twelve-week portfolio development

Course (specifically comic book illustration) followed by a 12-month business development/incubation process (which is currently 3 months in at time of writing). The research takes a qualitative and explorative approach and was made up of semi-structured interviews with all participant, tutors and intermediary organisations.

This paper presents the initial findings of the early stages and discusses early indicators of what are the perceived and real barriers to BME individuals realising successful self-employment in the Creative industries. It highlights significant challenges to how mainstream business support and creative industries education is organised and offered. Understanding these issues is important for the growth of these sectors, recognising and exploiting the valuable skills, ideas of these groups, and delivering local government policy successfully.

Level 2, St. Mary's House, c/o Moorfoot, Sheffield S1 4PQ

Tel: +44(0)114 279 4443

E-mail: Mike.Chadwick@sbs.gsi.gov.uk Web site: www.sbs.gov.uk

Small business owner manager surveys frequently inform changes in policy or the launch of a new service or product. Asking business advisers for their opinions can provide an extra dimension to thinking on policy development and delivery and a broader view of how government and other providers of services for small businesses might approach some of the key issues facing their customers.

The on-line survey, the UK Business Adviser Barometer, was launched in 2001 to complement the UK Business Barometer. Each on-line monthly survey asks advisers and business people respectively about their views on a wide range of subjects. The surveys have some advantages over traditional large scale surveys. They are: quick to design, distribute and collect; on-line - they can be completed at the touch of a button when and where the respondent chooses; independently run; quick to complete; open to anyone active in the two 'communities' – businesses themselves and business advisers; able to compare the views of customers and advisers on the same issue; able to provide a useful indication to government of how policies or government measures, such as regulations, are having an impact on small businesses.

This summary paper presents findings from a survey on regulation, comparing business adviser and business people’s views on the following issues: the extent to which taxation and regulation are a problem; how far specific processes (pay as you earn, benefits/credits, national insurance, value added tax, income tax, employment regulations, health and safety regulations) are an issue for small businesses; how much time it takes to comply with regulations and the diversionary impact of this; the effect of regulations on developing new markets, products, services or processes; the impact on recruitment, business costs, turnover and investment plans; and preferred methods for reducing the impact of regulation.

The results are contextualised by a brief comparison with recent large-scale surveys. The prospects for the future use and development of the on-line research tools are also outlined.

Econcomic Development Division, 8^th Floor, Civic Centre, Newcastle upon Tyne, NE1 8QN

Tel: +44(0)191 211 5665 Fax: +44(0)191 211 4935

E-mail: estelle.chatard@newcastle.gov.uk Web Site: www.competitivenewcastle.com

Times Square, Newcastle upon Tyne, NE1 4EP

Tel: +44(0)191 211 2592 Fax: +44(0)191 211 2561

E-mail: jerel.whittingham@cenamps.com Web Site: www.cenamps.com

In a recent paper published by the European Commission "how to get more firms to grow" is highlighted as one of the fundamental challenges to be addressed in Europe today. The issue becomes even more complex when the needs of innovative high-tech companies are examined. The technology-venturing environment remains an imbalanced ecosystem where vital elements are missing. Equity, access to information and partners, appropriate network and skills are some of the fundamentals that, if mismanaged, can have negative effects on growth and sustainability. Consequently, successful high-growth ventures are a combination of well-defined processes that gather the right people and the right resources at the appropriate time. In this context, the concept of high-growth start-up support becomes essential. Research is emphasising the importance of conceptually integrated support and individually tailored packages to devise long-term solutions to early stage technology start-up needs. Across Europe, a number of good practices have been identified from training and information, help with finance to incubation models. The proposed presentation will examine the high-growth start-ups support tools and methods developed by The European Extended Enterprise for Innovation (TEEE-Inn), a consortium of five European partners, namely, Cambridge, Marseille, Newcastle, Sophia Antipolis and Turin. It will focus more particularly on the integration of coaching methods based on a market-pull approach to venture creation. TEEE-INN is a Fifth Framework Programme project that aims at reducing the risks linked to the creation of high-tech innovative start-ups by identifying, codifying and proposing solutions to their major problems. The programme involves monitoring and federating communities of interest, networking innovation transfer, focusing on failure stories to detect early needs for action. From idea creation to commercialisation, assisted entrepreneurs benefit from a dynamic system of information watch, networking and assistance (technology, market, finance, team).

Private Bag, Rondebosch 7701, Cape Town, South Africa

Tel: +27 21 650-4390 Fax: +27 21 689-7570

E-mail: tchikwec@commerce.uct.ac.za

The development of the Small, medium and micro enterprise (SMME) sector is an integral initiative of the South African government ‘s effort to address ‘previous inequalities, and create employment for the previously disadvantaged social groups. It is also part of the process of upgrading skills, redistributing income, reducing poverty and ultimately ensures economic growth in South Africa. SMME support organizations are at the center of ensuring that effective support and mechanisms are in place to support and enhance the growth of this sector. It is from this background that a national survey covering 125 support organizations was carried out in order to analyze and evaluate key issues on the effectiveness and function of support organizations and their viewpoints on critical issues facing the SMMEs. The focus of this paper is on providing an insight on the support organizations’ viewpoints and practice of networking and collaboration amongst themselves in their effort to promote the SMME sector. The paper provides key insights extracted from the broad national survey on the existence, importance and practice of networking and collaboration by SMME support organizations in South Africa. Lessons and experiences can be drawn from this study, which can be used as a reference by other support organizations in emerging markets such as Asia. It also provides a basis for comparisons and d potential harnessing of global research on the importance and relevance of networking for SMME support organizations in their attempt to effectively promote the growth and development of SMMEs.

Booth Street West, Manchester, UK, M15 6PB

Tel: +44(0)161 275 6536 Fax: +44(0)161 275 7143

E-Mail: F.Chittenden@mbs.ac.uk Website: www.mbs.ac.uk

Panikkos Poutziouris, Associate Professor in Entrepreneurship and Family Business

This paper reports the findings of a two year study funded by the Institute of Chartered Accountants in England and Wales. Fifty interviews were held with business owners and senior managers to explore their investment decision making processes. The interviews were followed by a postal survey of 240 companies.

The interviews and surveys confirmed that small firms prefer the pay-back method of investment appraisal to more complex discounted cash flow models. This is a well known observation that has been attributed to the lower levels of formality in small firms and the apparent lack of sophistication of business owner managers. However, by exploring the nature of business risk we conclude that the use of pay-back is consistent with the higher levels of risk and uncertainty faced by small firms and this leads to a preference for rapid recovery of the funds invested. Shorter pay back projects are more attractive than longer term investments even if these would potentially yield higher returns.

In their search for flexibility businesses prefer to avoid long-term investment decisions whenever possible. Recent developments in finance markets have resulted in many types of fixed assets becoming available through operating leases and rental or hire contracts. As a consequence SMEs are now able to obtain much of the capital equipment that they require without having to accept the full "rights and responsibilities" of ownership. Such equipment can be used by a business when needed but when circumstances change the equipment is returned to the lessors / hirers subject to a modest termination fee. These practices are widespread and the majority of established small firms adopt this approach. As a consequence of the ready availability of equipment through these "Capital Asset Uncertainty Markets" traditional Capital Budgeting techniques, as presented in most standard finance textbooks, are now of little relevance to small businesses.

STEP Business Centre, Wortley Road, Deepcar, SHEFFIELD, S36 2UH

Tel: 0114 290 3600 Fax: 0114 290 3605

E-mail: Sylvia@STEPBusinessCentre.Co.UK Web Site: www.stepbusinesscentre.co.uk

An average of 1 in 6 of the adult population suffers mental illness at some point in their lives. By creating the right practical conditions we can empower people to take control of their lives through entrepreneurship. A supportive "can do" culture provides the necessary conditions and encouragement for some people to pick themselves up from the human "scrap heap". A model of best practice has been developed through the delivery of a Phoenix Development Fund project. The project was developed and delivered by a community organisation involved in regeneration.

The regeneration of a community badly affected by job losses in the steel industry requires a new approach to pre-start and start-up business support. The creation of 115 new businesses over a 2 year period has demonstrated that the new techniques work. To date, the business survival rate stands at 98%. The project has assisted many long-term sick and long-term unemployed individuals to create high growth, intermediate growth and moderate growth businesses.

Many senior professionals suffer "burn out" or stress. Given the right conditions and support entrepreneurship can often provide a suitable rehabilitation. The skills and experience of these "third age" individuals can then be harnessed to create intermediate and high growth sustainable businesses. Creating the cultural and practical conditions involves specialist support working in parallel with pre-start and start-up support. Confidence building and counselling comprise a major part of the additional elements. The long-term unemployed and long-term sick can also benefit from the "can do" culture and the approach has stimulated latent entrepreneurial ambition.

STEP Business Centre, Wortley Road, Deepcar, SHEFFIELD, S36 2UH

Tel: 0114 290 3600 Fax: 0114 290 3605

E-mail: Sylvia@STEPBusinessCentre.co.uk Web Site: www.stepbusinesscentre.co.uk

The modern regeneration and social inclusion agenda demands new Business Adviser skills and knowledge. A model of best practice has been developed through the delivery of a Phoenix Development Fund project that has successfully attracted, engaged and supported socially excluded individuals. The project was developed and delivered by a community organisation involved in regeneration.

The regeneration of a community badly affected by job losses in the steel industry requires a new approach to pre-start and start-up business support. The creation of 115 new businesses over a 2 year period has demonstrated that the new techniques work. To date, the business survival rate stands at 98%. The project has demonstrated that the new Business Adviser knowledge and skills can also produce intermediate and high growth businesses.

The knowledge and skills include dealing with the long-term unemployed and the long-term sick. Psychological issues, confidence and self-esteem need identifying and addressing. Inter-personal skills must be highly developed and diagnostic skills need to be finely tuned to identify issues that may be a barrier to successful entrepreneurial development. A greater breadth of knowledge is required to support individuals who may have problems with financial and fiscal literacy. Some older clients may be professional people that have suffered stress and "burn out". With the right approach there is potential for high growth from these experienced individuals. Rapport building and trust will enable the Business Adviser to understand how personal problems may impact on entrepreneurial ambition. Most importantly, the Business Adviser must have the skills to ensure that pre-start and start-up advice will empower the individual to create a sustainable business.

Northampton Business School, Park Campus, Northampton, NN2 7AL

Tel: +44(0)1604 735500 Fax: +44(0)1604 721214

E-Mail: Mark.Cook@Northampton.ac.uk

Westminster Business School, 35 Marylebone Road, London NW1 5LS

Tel: +44(0)20 7911-5000 Ext.3295 Fax: +44(0)20 7911-5839

E-mail: ekwuluf@wmin.ac.uk

Within the Ethnic Minority Business (EMB) small business sector in the UK the African business is still under-researched. This may appear odd since more African SMEs start up autonomously in the UK than other ethnic groupings. Of those studies that have been carried out many have a strong London bias and may not be representative of the issues and concerns faced by African and Caribbean Businesses (ACBs) in the rest of the UK. This paper seeks to address these issues by considering the reasons for start-up, marketing and planning issues, resource issues, and business support networks affecting African small businesses in the UK using a number of case studies based upon semi-structured face-to-face interviews with Zanzibari, Somali and Kenyan businesses based in London and in Northamptonshire.

The results indicate a number of similar experiences for all three businesses. All groups had started trading because of the demand for their services within their co-ethnic community and had not used external finance. Businesses were managed by highly motivated individuals, had made no use of government and public sector support and there was a general lack of marketing skills. Businesses generally were growth orientated, had made great use of co-ethnic labour, with the idea of giving something back to the local community, and had developed through the influence of their co-ethnic communities. Whilst entrepreneurs were well qualified (at least to degree level) their use of planning and strategy was limited. There were however, some differences between the businesses in particular in the areas of financial skills and technical skills. Networking was more in evidence for the Kenyan businesses.

All sub-ethnic groups appeared however, to be falling through the cracks of mainstream business support. Finally the paper provides a range of policy suggestions for the further development of the UK African small business sector.

Faculty of Professional Studies, St Mary’s Rd, Ealing, London W5 5RF

Tel: +44(0)20 8231 2118 Fax: +44(0)20 8231 2111

E-mails: Roger.Cook@tvu.ac.uk; Janette.Munro@tvu.ac.uk

The challenge of addressing the educational needs of undergraduates in BA Business Studies in the context of changing business, personal, environmental and ethical influences is discussed. Career aspirations are introduced as a driver with a focus on fostering an entrepreneurial attitude and networking opportunities. Capturing any envisioned value and the inherent difficulties and challenges are recognised. The opportunity of the Small Business Sector as a forum for the Teaching and Learning of Enterprise is explored.

Classroom based learning will be reshaped with work related learning in its various transformations. Profiling students’ current and prior experience as well as validating future aspirations will form an integral part. Particular attention is paid to the current flexible approaches to study and the seed change in employment patterns. Best practice of over ten years of small business and enterprise in the undergraduate curriculum will be synthesized and disseminated.

Current case scenarios based on action research are used and the positive influence of ethnic minorities on the educational process will be illustrated.

Benefits of drawing on the wealth of entrepreneurial expertise in the local community will be highlighted and plans developed to capitalise on the mutual goodwill available.

The warp of theory and weft of practice woven in the context of Small Medium Enterprises will form the framework for the educational experience resulting from the converging interests of government agenda and student aspirations and awareness.

Our initiatives which we are outlining recognise and exploit the increasing and pervasive need for small business enterprise to undergird the undergraduate curriculum.

______________________________________________________________________________________________________

57 Little Norton Lane, Sheffield, S8 8GB

Tel: +44(0)114 2747378 Fax: +44(0)114 2740014

E-Mail: Bethanydevteam@aol.com

In the 2003 Pre-Budget Report Government announces a "review of the routes off benefits into self-employment". This policy commitment was affirmed in the Government Action Plan for Small Business published in January 2004.

The focus of the Review was to examine:

The effectiveness of government-sponsored information services in supporting the transition from unemployment, and employment, into self-employment/starting up in business;

Ways of encouraging moves into self-employment by promoting awareness of the financial and other support available;

Client and adviser perceptions of how Government offices and agencies particularly Jobcentre Plus and Business Link operators, can assist the would be self-employed.

Jeff Cooke, Chairman of the Jobcentre Plus Self-employment Provider Group chaired the Review and provided the Government with an Interim Report on 30^th April.

The Government responded to the report by noting the recommendations and was grateful to the Review Board for identifying potential improvements in collaborative working practices across Government sponsored information and advice services in England. The Government is now exploring means of implementing these, taking into consideration the suggestions made in the Review’s Interim Report.

A Working Group has been formed to develop an action plan for implementing the recommendations and a final report will be presented by the review board in the Autumn.

Over 150 organisations and individuals responded to the call for evidence providing the board with over 1000 points of evidence, barriers or suggestions.

The purpose of the workshop is to present the barriers that were identified during the review boards activities and to present potential solutions to overcome them.

Lichfield Street, Wolverhampton, WV1 I SB

Tel: +44(0)1902 321829 Fax: +44(0)1902 321883

E-mail: p.costello@wlv.ac.uk

As more companies depend on technology in a global market and the use of the Internet for business-critical applications grows, relevant skills are crucial for companies to compete. Trained personnel with up-to-date skills are needed to access and effectively exploit information, knowledge and expertise, to distribute information across an organisation, and to share that information with other partners. The University of Wolverhampton’s School of Computing and Information Technology created this initiative and received European Social Funding (ESF) to provide IT upskilling for employees in the West Midlands (WM). A range of courses were offered to assist companies to become more competitive. Aimed at (aspiring) managers in private organisations, the courses were at Masters Level and offered as part of Continuing Professional Development (CPD) to help employees gain new skills and knowledge, and allow them to keep up-to-date with the latest developments in IT.

This report presents the mid-term evaluation results conducted during the process project. The authors were closely involved in the project management and delivery of education to the participants. The majority of the companies involved in the initiative were Small Medium Enterprises (SMEs). The report is presented in three sections; the background and rationale are described along with an introduction to the author's participation, the findings from the evaluation, both quantitative and qualitative and the results. These show that the mode of delivery is of paramount importance to employees in any size company but particularly so for owner managers. The results also demonstrate that whilst all participants expect personal gain from the education in ICT it is the owner managers who’s company showed an immediate performance gain. Finally, the report speculates on the implications and challenges for CPD in Higher Education (HE), whilst also examining the impact this has had on the companies and the individuals involved.

22-24 Mount Charles, Belfast, Northern Ireland, BT7 1NZ

Tel: +44 (0)28 261820 Fax: +44 (0)28 90330054

E-mail: m.crone@qub.ac.uk Web Site: www.qub.ac.uk/nierc

The paper presents a case study of the emergence of new technology-based firms (NTBFs) in a late developing and relatively peripheral region. Specifically, it investigates the recent emergence in the Republic of Ireland of a group of VC-funded indigenous software start-ups ("Celtic Tiger Cubs"). The emergence of this group is somewhat unexpected since Ireland has no real track record of producing indigenous technology firms; the much-vaunted ‘Celtic Tiger’ phenomenon of the 1990s was driven primarily by foreign direct investment. This case study may therefore be instructive for policy-makers hoping to encourage the development of indigenous NTBFs in similar regions.

Drawing on an analysis of secondary data sources (e.g. company web-sites, sector-specific media) the paper presents new empirical evidence from this ongoing study in three main sections. The first section profiles the firms, many of whom display the traits of ‘born globals’ as recently identified in the international business and entrepreneurship literatures. The second section investigates ‘modes of entry’ and the backgrounds of the company founders. Five distinct modes of entry are identified, with the largest group being characterised as "entrepreneurial spin-offs". The majority of firms had a team of founders. Founders typically had significant commercial experience from previous employment with both indigenous Irish firms and multinationals based in Ireland, and in some cases from work experience outside Ireland. The third section makes some preliminary observations on company development strategies. Common strategies include: continual product innovation, use of external funding for growth, recruitment of experienced personnel and prolific networking including the formation of strategic alliances. In conclusion, some initial thoughts on the possible policy implications of the research are offered and some avenues for future investigation are suggested.

Paisley Business School, University of Paisley, Paisley, PA1 2BE

Tel: +44(0)141-848-3933 Fax: +44(0)141-848-3618

E-mail: david.deakins@paisley.ac.uk Web site: www.paisley.ac.uk/business/perc

In the UK there have been recent policy developments in enterprise education, but Scotland has enjoyed the launch of a comprehensive programme, 'Enterprise in Education' for all schools in Scotland. This programme represented the Executive's response to a working party review of education and enterprise. The review, "Determined to Succeed", 2002, represented a comprehensive overview of requirements in order to provide enterprise education in all schools in Scotland. Enterprise in Education contains five main elements. These have been developed in partnership with the Hunter foundation and the aim stated is to "take an innovative and experimental approach in developing key themes in the initiative around the professional development of teachers, the engagement of disengaged school students and the promotion of a focused and resource-intensive approach to Enterprise in Education" (Scottish Executive, 2004). This paper will report on the findings from research conducted on one of the five innovative programmes which involved the pilot stage of a Leadership Academy delivered by the Columba 1400 organisation, with Head Teachers and Deputy Head Teachers (HTs and DHTs), for the Scottish Executive and the Hunter Foundation

The paper will report initial findings from the pilot phase of the programme with 90 participants and will include ex ante evaluation, participant observation techniques and ex post evaluation. The research team have used Ajzen's theory of planned behaviour (TPB) for an assessment of the attitudes to enterprise education by HTs. To evaluate the pilot programme the research team has undertaken a combination of participation and direct observation and 60 interviews with a sample of HTs on the pilot programme. Although the aim of the research was to provide an evaluation, the comprehensive nature of the methodology will allow the authors to report on a range of issues facing HTs as they seek to implement the policy developments in their schools and in their curricula with pupils.

Guildford GU2 7AL

Tel: +44(0)1483 682122

E-mail: S.Dhaliwal@surrey.ac.uk

Female Entrepreneurs are responsible for one third of all start-up businesses in the UK. They are vital to the economy and the future growth of the SME sector. Their dynamism and enterprise enriches the sector. Despite the positive contribution and untapped potential of women in business, the UK government has failed to support an increase in women owned businesses. This paper is based on a project of the same name currently in progress at the University of Surrey. Training Women to Win supports initiatives relating to gender discrimination in employment. The project also fits with, and has been informed by, the DTI/Small Business Service’s Strategic Framework for Women’s Enterprise.

The aims of the project are to investigate whether past and current interventions available to female entrepreneurs have been effective and to ascertain whether female entrepreneurs are satisfied with the initiatives. It will further examine whether female entrepreneurs believe that these initiatives have contributed to the financial success of their businesses and assess the impact of targeted women’s enterprise support programmes. It will also attempt to assess the reasons for longer start-up periods for female-owned businesses and the role of supply and demand factors as constraints in start-up finance. Finally, it aims to identify any existing discrimination and actions to combat the discrimination female entrepreneurs face when accessing enterprise support.

A postal survey will be conducted on one thousand women selected from a target audience. There will be several focus groups as well as face-to-face interviews on a limited number of the women.

The project will provide an audit of existing training and business support provision as well as detailing the impact of past and current initiatives designed to assist female entrepreneurs. It will produce key recommendations for use when supporting future initiatives and produce recommendations highlighting the possible direction of future provision.

Edinburgh, EH14 4AS.

*Tel: (+44) 0131 451 8286; Fax: (+44) 0131 451 8288

*Email: l.galloway@hw.ac.uk

Much research into business activity in rural areas is concerned with the contribution of the small firms sector to economic well-being and development. It examines the propensity of small rural ventures to grow, especially where this creates employment. This research, which depends heavily upon an entrepreneurial model of business, has both informed and been informed by public policy.

In this paper, we follow recent research in questioning the tendency to treat such diverse terms as entrepreneurship, small business start-up, enterprise and self-employment as largely synonymous, and following Galloway & Wilson (2003) question the applicability of the entrepreneurial model to much of the, specifically rural, small business community.

The current paper reports results from a study of entrepreneurship in firms in rural areas. The intention is to examine motivations for starting, and ambitions for developing, small businesses in rural locations across Scotland.

The study includes information about motivations for start-up and business development in rural firms, as well as attitudes to growth and ambitions for the business and the individual. Findings include that rural businesses tend to be established in order to meet owners’ limited objectives, and the proportion of businesses exhibiting growth, or entrepreneurial, orientation is very limited. The majority of rural businesses have well-established local markets where trading tends to rely upon geographical location. Additionally, demographic information examined included length of time resident in the rural locale and reason for migrating in (where appropriate). In the context of the rural economy, it is often supposed that in-migrant owners who choose to establish a business in a rural area, are amongst those most entrepreneurially oriented. Our findings suggest that this may not be the case.

Athinas Ave. & 2A Areos Str., 166 71 Vouliagmeni, Greece

Tel.: +30 (2) 10 8964531-8 Fax: +30 (2) 10 8964737

E-mail: dodsarah@alba.edu.gr

P.O. Box 4014, Atlanta, GA 30302-4014, USA

Tel: +1 404-651-2989 Fax: +1 404-651-2896

E-mail: alice@dekoning.ca

An on-going study has involved harvesting articles about entrepreneurs from the leading newspapers of six countries, so as to compare international differences in enterprise cultures. Analysis of the 1,400 metaphors harvested from newspaper stories about entrepreneurs show that mythology is a major theme for all countries. This paper uses literary analysis to study the mythical metaphors of the entrepreneur, so as to shed light on enterprise cultures, and linked public perceptions, ideologies and rhetorics of the entrepreneur.

Many of the mythological metaphors in the sample articles fit with the heroic model: journeying, hostile environment, special skills, war, the fall from great heights. Specific references and allusions in the metaphors analysed compare the entrepreneur to heroic figures: warriors, knights, pioneers, Hercules and Icarus. The Promethean myth also appears to play a role: leaving the Golden Age of natural simplicity behind in the pursuit of knowledge and technological progress cannot go unpunished. Heroes are ambiguous, neither wholly good, nor wholly integrated into society, they are used to help make sense of issues like ambition, success, progress, and individual – societal relations.

Whence this mythologizing of the entrepreneur? We argue that the post-Fordism of the last 20 years has left a vacuum in our understanding of the socioeconomic world. Corporate capitalism no longer offers a template for economic progress, but wholesale acceptance of political rhetorics of enterprise cultures have also been found wanting. By mythologizing the entrepreneur, his central place in modern economic structures is made sense of. This is not pure hagiography, however: pride, exclusion from society, and failure are all part of the story. These social constructions of reality impact upon perceptions of the entrepreneur, and hence upon social rewards – and punishments - for entrepreneurship.

ENTR/B3 – SC27 4/35, B – 1049 Brussels, Belgium

Tel: + 32 2 299 67 54 Fax: + 32 2 295 45 90

E-mail: fabien.durand@cec.eu.int

Web Site: http://europa.eu.int/comm/enterprise/index_en.htm

The European Commission estimates that public procurement in the European Union (EU-15) accounted for around 16% of EU’s GDP and for about 1,500 billions euros in 2001. Optimising the operation of the internal market is seen as being of vital importance for the EU and for achieving the Lisbon objectives. Since the early 1970’s, EU policy, based on transparent and competitive purchasing rules, has been to open up national public procurement to competition from other Members States. A new EU legislative package on public procurement adopted in 2004 aims to further increase procurement opportunities and transparency, reduce red tape, bring transaction costs down, reduce entry barriers to the market and finally to ensure that contracting authorities and bidders can save time and money by using new technology to manage the tendering process.

SMEs access to public procurement can be viewed as an important indicator of the openness of the public procurement market. A study conducted in 2003 on SME participation to public procurement contracts published in the Official Journal of the EU analysed the structure of the market, the conduct of the market players and SMEs performance in accessing the market. The study shows that the structure of the EU procurement market is still fragmented and its functioning can be further improved. SMEs access to public procurement market above EU thresholds was measured for the first time ever. SMES (enterprises with less than 250 employees) represent 99.8% of the EU enterprise population. However in 2001, only 78% of the enterprises that won o ne or more contracts in the public procurement market has less than 250 employees. This varies form 65% in the UK to 92% in Luxembourg. In term of value of contrats, 43% is won by SMEs. SMEs account for 53% of total turnover in the EU enterprise population.

These figures indicate that there seems to be room for improvement in further involving SMEs in public procurement. The study analyses the main barriers faced by small businesses and proposes to both awarding authorities and businesses a series of suggestions and good practices that might facilitate their access to public procurement and a better functioning of the market.

The Burroughs, London NW4 4BT.

Tel: +44(0)20 8411 6239 Fax:+44(0)20-8411 6607

E-mail: i.ekanem@mdx.ac.uk; d.smallbone@mdx.ac.uk

Based on recently completed PhD research, this paper investigates how small manufacturing enterprises make investment decisions. The paper adopts a learning approach as the most appropriate framework for analysing this behaviour. Although there has been a growing recognition of the role of organisational learning in the survival and growth of small firms, there are limited empirical studies to demonstrate the link between learning and organisational effectiveness. This research explores the learning process of owner-managers in relation to their investment decision decision-making behaviour.

The study uses 'Insider accounts' as a qualitative and innovative methodology, which involved in-depth, semi-structured interviews and direct observation, conducted longitudinally in 8 case study companies. ‘Insider accounts’ is a research method, which includes detailed accounts from the actors themselves, incorporating the actual motives and behaviour of owner-managers. The findings suggest that owner-managers rely on experiential learning when making investment decision-making, rather than formalised methods. As a result, conceptualising the small firm investment decision making process within the context of a learning approach holds promise as an explanatory framework for investment behaviour in small firms.

Specifically, the aims of the paper are to

identify the learning process of owner-managers in relation to investment decision-making based on an in-depth qualitative case study methodology;

assess the strengths and weaknesses of a learning-based approach in comparison with alternative explanatory framework.

High Street South, London, East Ham, E6 6ER

Tel: 020 8257 4110, Fax: 0208 257 4119.

E-mail: gill.fennings@newham.ac.uk

Web sites: www.cipsonline.com ; www.Herbusinessuk.co.uk

The workshop will outline the best practice of the Her Business ERDF Project (based in Newham East London) and its work with hundreds of black and ethnic minority women entrepreneurs who have benefited from access to a professional business coach, advisor and networking and web advertising opportunities. We have also used the latest Neuro Linguistic Programming (NLP) techniques to improve their business skills and enhance communication and understanding of self and others. The workshop will outline ‘best practice’ with the use of a short film, illustrating the integration of NLP and coaching into the support process in order to maximise effectiveness and GET RESULTS! There will be demonstrations of the use of NLP and hands on experience of how to utilise the skills in practice (time allowing).

Objectives:

By the end of the session each delegate will have;

· Gained an awareness of the positive impact of coaching on business function for the individual entrepreneur

· A model of implementing a coaching structure into business support in their work with women

· Appreciate the use of NLP for future use

Areas to be covered and what delegates will learn

· Best practice model of coaching

· What is NLP and how is it used?

· The GROW model

· Its all in ‘Rapport’ and relationship building

This will be a fun but serious interactive session with some theory and plenty of practice. There will be time built in for debate, open discussion and sharing of experiences.

E.R.F.I., Universite Montpellier I, ISEM - Espace Richer, Rue Vendemiaire, Bât E - CS195 19

34 960 Montpellier Cedex 2, FRANCE

Tel:00 33 (0)4.67.81.86.02

E-mail: marion.polge@univ-avignon.fr

The SME Managers Club provides a qualitative and innovative survey methodology in three key areas.

Initially, studies and analyses are generated by the profession itself. A "global enterprise managers assistance system" has been set up by the Institut Superieur des Metiers (French Institute to assit and support small firms), in response to requests conveyed by SME representative institutions. The procedure forms part of the construction of a research programme to find answers to questions raised by society.

Secondly, the originality of the initiative resides in the operational mode : methods are based on a direct and continuous involvement with grass-roots operators. Beyond the concept of action research, we would rather suggest the expression "active research". Managers take part in research both collectively and individually. They are continuous actors helping to build tools for their decision-making.

Thirdly, the final objective aims to lead participants to form a strategic position for small firms within the context of changing professions and changes in the business environment. Reaching a strategic vision for the development of small enterprises appears as a third innovative element.

Our presentation of this aim for a participatory and prospective methodology is geared around three points: the framework of research, the deployment of the procedure and, lastly, a presentation of the results obtained.

16 Jesmond Road, Newcastle, NE2 4PQ

Tel: +44(0)191 281 9955 Fax: +44(0)191 281 9966

E-mail: colin.gallagher@tbr.co.uk Web site: www.tbr.co.uk

Herschel Annex, Newcastle NE1 7RU

Tel: +44(0)191 243 0689

E-mail: develop@newcastleconsulting.co.uk Web Site: www.newcastleconsulting.co.uk

A major part of small business policy in the UK focuses on the encouragement of a more entrepreneurial culture, and advice for those who start up their own enterprise. In the first quarter of 2003, around 100,000 businesses closed down in the UK. This paper examines the circumstances of the owner-managers of failed businesses as they attempt to re-start in business. It tries to answer the question of whether such re-starts should be encouraged, and if so, how best to help the process. The experience of owner-managers of failed businesses is a somewhat neglected area of research. Analysis suggests that subsequent new businesses started by these individuals have a high probability of growth in turnover and employment.

The methodology has three parts. First, existing literature is reviewed. Second, a set of 19 failed owner-managers were interviewed, to establish: a. Whether they had re-started in business or not. b. Their thoughts on issues raised in the literature. c. The contribution of the support network in the region to the re-start process. Finally, a sample of support agency advisors was interviewed, to gain their views on failure and restart.

The main conclusions drawn were: a. The economy can benefit considerably by encouraging appropriate failed owner-managers to re-start. b. The achievements of successful re-starters should be publicised, to counteract the current failure stigma. c. In particular, an initiative should be developed to encourage professional and managerial re-starts. d. Failure often creates a credit rating problem so a re-starters venture fund should be created to fund appropriate re-starts.

Dept. of Economics and Management, P.O. Box 4120, 39016 Magdeburg, Germany

Tel.: +49 (0)391 67 - 11890 Fax: +49 (0)391 67 - 11254

E-mail: gansel@ww.uni-magdeburg.de Web site: http://www.interaktionszentrum.de/

Empirical studies across different industrial countries have shown a positive correlation between planning intensity and the success of a business venture. Nevertheless, financial planning is typically regarded as a major obstacle in the process of new venture creation. Analytical techniques for large-scale and international enterprises are not fully appropriate for dealing with start-up planning. However, the existing literature which focuses on start-ups lacks a clear theoretical approach.

In this article, we develop a new coherent conceptual framework for financial planning with two levels of interdependencies: At the "upper level", financial planning is related to other main functional areas within the overall corporate planning; at the "lower level", mutual interdependencies among elements of the financial planning process itself are taken into consideration. This provides a fundamental decision-making instrument, which supports the evaluation and exploitation of entrepreneurial opportunities, as well as the formulation and feasible implementation of the corporate strategy.

We integrate planning elements concerning sales, related expenditures, investments, capital requirements, and financing in a comprehensive financial planning framework that emphasizes the structure, interdependence, and adjustment of elements within an iterative planning process. The quantitative result of this process is a consistent financial plan. We demonstrate how the robustness of the financial plan can be tested by employing sensitivity analysis, scenario analysis, and simulation. The components of our approach are fully consistent with generally accepted accounting principles (U.S. GAAP and IAS).

* I gratefully acknowledge the contribution and referee of Matthias Raith as well as the proofreading and translation of Alexander Borisov.

Small Businesses: Handing Over The Reins (Generationsskifte)

Calzada del Hueso No. 1100 Col. Villa Quietud C.P. 04960 México, D.F.

Tel-Fax: 00 52 55 55 30 43 01

E-mail: tigrecancer@hotmail.com

In a business life cycle there are moments of great importance. Among them, some are crucial because of the impact they may have such as formation, planned growth, solidifying and, when the time comes, succession or the business transfer.

This article intends to analyze the latter stage focusing on the way this process, so important in a business life cycle, is done in the smallest of the Nordic countries, i.e., Denmark.

First, we will explain briefly the meaning of business transfer and the reason of choosing such a subtitle. We will also mention the main participants involved in this process, the steps it takes, the ways or options for structuring the deal and the ideal people who could continue with the business. Finally, we will provide five examples of firms with different activities and specific characteristics that went through the business transfer process.

With that purpose, we got in contact with the Jyske Bank that is one of the most knowledgeable banks in this field as well as with the entrepreneurs who have gone through the business transfer process experience.

This research was considered important due to the full succession or generation shift in Denmark takes in average 10 years, time they consider necessary to transfer the know-how to the next owner.

Maxwell House, Crichton University Campus, Dumfries, DG1 4UQ

Tel: +44(0)1387 702076 Fax: +44(0)1387 702070

E-mail: Keith.Glancey@paisley.ac.uk Website: www.paisley.ac.uk

Redwood House, Spylaw Rd, Edinburgh, EH10 5BR

Tel: +44(0)131 455 5178 Fax: +44(0)131 455 5102

E-mail: m.greig@napier.ac.uk Web site: www.napier.ac.uk

The paper examines key aspects of the social/community basis of rural entrepreneurship and reports findings from a qualitative study of 25 rural entrepreneurs based in Dumfries and Galloway region in the South of Scotland. In the UK there has been growing interest in populations of small enterprises as mainstays of many rural local economies, despite evidence that typically few individual rural enterprises grow to any significant size. Critical to the functioning of rural enterprises is their embeddedness in the community and social structures of local economies; and entrepreneurial motivations that have positive externalities for community development, and the sustainability of a physical environment that promotes a high quality of life. This study adds to the body of research in this field by considering in depth three aspects of rural enterprise that have been flagged as meriting more detailed investigation: (i) differences between indigenous and in-migrant entrepreneurs, in terms of their motivations and business practices; (ii) the role of relationships as creators of markets for rural entrepreneurs; (iii) entrepreneurial behaviour in rural enterprises aimed at promoting individual interests within a collective environment of relationship networks. The study adopts a dynamic conceptual model of business development appropriate for rural enterprises in order to examine key research propositions in these areas of investigation. Findings from a program of depth interviews with entrepreneurs suggest that there are key differences between indigenous and in-migrant entrepreneurs, largely determined by their ability to access local social networks; that relationship marketing is crucial to the viability of businesses in a rural locality regardless of economic sector and locality of customer base; and that while entrepreneurs use their existing social networks as parallel business networks, the way in which they manage relationships is ‘professionalized’ and aimed at protecting the solidarity of the collective entrepreneurial network within the locality.

Walton Hall, Milton Keynes, MK7 6AA

Tel: +44 (0)1908 655862. Fax: +44 (0)1908 655898

E-mail: c.w.j.a.gray@open.ac.uk Website: www.colingray.org.uk

As the adoption of computers and the Internet become almost universal among all but the smallest of firms in Europe, the relation of ICT adoption to entrepreneurship is not clear. With increasing policy focus on innovation and growth among Europe’s 20 million or so SMEs, a working definition of entrepreneurship is emerging of firms that have the intention and capabilities to grow through innovation. The early adoption of ICT, Internet, website and broadband was once seen as the hallmark of an innovative, growth-oriented firm and the links to entrepreneurship seemed clear. However, basic ICT adoption is now so diffused that it is not a factor that discriminates meaningfully between entrepreneurial and non-entrepreneurial SMEs. Indeed, OUBS research suggests that innovative adopters of broadband are less entrepreneurial than ‘early majority adopters’. Furthermore, it is apparent that the adoption of e-commerce (buying and selling online) has stalled and that most SMEs use their websites as ‘me too’ electronic catalogues. The shift to e-business models and the emergence of entrepreneurial online firms replacing traditional SMEs has not yet happened.

Nevertheless, ICT applications can offer new opportunities. However, these appear to be driven by business needs rather than technology push factors. Linear stage models of ICT adoption do not appear to represent entrepreneurial reality. This paper examines whether informal social network diffusion of innovation models and practical issues, such as cost savings, may better reflect entrepreneurial ICT adoption and use. Drawing on findings from the OUBS study of the impact of broadband on EU small firm networks and quarterly surveys conducted in Britain among 1,000 SMEs by the Small Enterprise Research Team (SERTeam), this paper contrasts growth-oriented firms and non-growth firms with respect to ICT adoption, degree of innovation and growth achievement.

15 Rookes Close, Letchworth, Herts SG6 2SN

Tel & Fax: 01462 481239

E-mail: elaine@emmg.co.uk Web Site: www.emmg.co.uk

1. This session is to give business managers insight into the concept of total reward as a recruitment tool in a marketplace in which they may feel they have limited buying power. The session includes presentations as well as participant groupwork to find alternative responses to this challenge.

2. An introduction will make reference to the most reportedly common reward strategy goals of European organisations, and the underlying reasons for problems with implementing reward strategies.

3. In groups, participants will identify the Business and Organisational Context in which they seek to recruit staff. They will be asked: Why are you recruiting? What are you looking for? What are your business drivers, goals, constraints? How will you identify what you need: job, talents, knowledge, attitudes?

4. Focusing on the supply side of the contemporary market for labour and talent, the groups will consider the drivers such as changing demographics and market accessibility, social diversity, competence, skills and talent, individual life-style choices, aspirations and motivation

They will identify ways of attracting and motivating a wider range of potential recruits. Specifically: What's on offer? What is your employer personality? Your employer behaviour? Your employment terms of business?

5. Under a third heading, The Employment Deal: A "Psychological Contract", participants will identify for themselves a desired culture for their organisation and the corresponding behaviours and competence required of proposed recruits. They will consider how the contract they strike with recruits can deliver enough of what each party requires, culturally, behaviourally and financially, for the time it is required.

6. Finally, the session will address testing for candidate suitability, and ask: What is "suitable" for your company? What are we testing? How do we test?

7. Handouts and guidance notes will be provided both during and after the session as appropriate.

C/o VTDI, Gordon Town Road; Kingston 6; Jamaica

Tel: 876-970-4435 (w) /876-999-1025 (c) Fax: 876-977-4304

E-mail: cgrossett@yahoo.com

Entrepreneurship is the cog on which any economy turns. A life of continuous education and training, awareness, and technological advancement is the only sure way to achieve economic growth and development. Encouraging and developing a culture of entrepreneurship are fundamental to the germinating, growth and, maturity of any modern business-oriented society.

Entrepreneurship education must not be seen as trendy or in vogue, but as a path, a channel, a way of life for all levels of a people who have a desire and conviction to achieving a better way of life for all. All societies in our modern world have their peculiar problem whether social, religious, economic or political. In the Caribbean and in particular Jamaica the major source of its problems stem from the lack of economic opportunities. Many hope that multi nationals would be the panacea to the economic woes, but to no avail; many look to the political powers of the day for their economic solution, but they too offer very little hope.

Whether one hopes to work in a multinational organization or just to operate one’s own account, be it large or small, one must exhibit personal entrepreneurial characteristics (PECs); these include calculative risk taking, net working, systematic planning and monitoring, adherence to quality, persistence and goal setting.

In his book ‘The Entrepreneurial Mind’ Jeffery A. Timmons purports the view that the entrepreneur is both ‘born and made’ hence entrepreneurship is also a learnt behaviour. It therefore follows that in order to have this spirit of entrepreneurship becoming a way of life and engrained in the psyche of all, the teaching must be introduced at all levels of the training continuum, utilizing different modes of teaching or finding a method that would lend itself to being tailored to meet the needs group.

The HEART Trust/NTA was established some twenty years ago to train the national workforce; entrepreneurship was made compulsory to all students registered in any programme in any of the twenty-eight institutions nation wide.

Brompton Lodge, Martin Lane, Bawtry, Doncaster, South Yorkshire, DN10 6NJ

Tel: +44(0)1302 710827 Fax: +44(0)1302 711006

E-mail: david@davidhalluk.com Web site: www.davidhalluk.com

Attempts to nurture High Growth Start-Up’s (HGSU’) across the UK have proven to be disappointing.

This working paper describes the lessons from a three-year intensive programme to build an effective entrepreneurial support system for high growth businesses in South Yorkshire.

Stage 1 was a 2-year research project by a multi-disciplinary team into the processes used by entrepreneurs to start and build a high growth business. The research was funded by Yorkshire Forward, Business Link South Yorkshire and David Hall Consultancy Limited.

The team included an entrepreneur, a psychologist, a psycholinguist and a behavioural modeller.

The research was conducted with 40 entrepreneurs in the region who had started and built million pound plus (sales) businesses. The findings were correlated with the entrepreneur’s financial performance over a ten-year period.

Stage 2 translated the research findings into the design of an integrated and co-ordinated support system included personal coaches, managed networking and personal development activities.

Stage 3 piloted the key system elements and currently stage 4 is building the capability of the supply network in the region to work with the system effectively.

This paper will summarise the key insights from the research and how these informed the design of the support system.

The programme to date has radically changed the way entrepreneurs are supported in the region and the results, which have been independently evaluated, have exceeded expectations.

Brompton Lodge, Martin Lane, Bawtry, Doncaster, South Yorkshire, DN10 6NJ

Tel: +44(0)1302 710827 Fax: +44(0)1302 711006

E-mail: david@davidhalluk.com Web site: www.davidhalluk.com

Is it possible for established mature businesses to innovate and develop in an entrepreneurial manner?

Numerous studies point to the culture being a major barrier to successful entrepreneurial business development in established organisations. Entrepreneurs in new growth enterprises generally create an achievement culture, whereas in larger more mature businesses power and control is normally the prevailing culture.

This best practice paper will share the insights gained from the process of facilitating entrepreneurial business development in a number of mature organisations.

The paper will describe the process of transferring the lessons from how successful entrepreneurs behave in small firms into the different context and cultures within larger mature businesses.

It will summarise the success and failures into a model for facilitating entrepreneurial business development, which has been independently evaluated.

It was found that as well as being highly desirable, it is also possible for established businesses to revitalise themselves by rekindling their entrepreneurial spirit.

Whilst no magic formula was discovered, focusing effort on the following did seem to make a significant difference in several cases:

Finding an internal entrepreneurial champion, carefully selecting teams with entrepreneurial inclinations, creating an internal achievement sub culture, providing new perspectives on traditional issues, encouraging trial and error and preventing corporate management from interfering too much.

Lancaster University Management School, Lancaster University, Lancaster, LA1 4YX

Tel: +44(0)1524 593916 Fax: +44(0)1524 594743

E-mail: e.hamilton@lancaster.ac.uk Web Site: www.lums.lancs.ac.uk/ieed

This paper introduces the concept of socially situated entrepreneurial learning to the context of family business. Firstly, the small, but influential, literature emerging in the area of entrepreneurial learning is examined. This literature explores learning that might take place both prior to, and in the process of, establishing, managing and growing new ventures. The existing research in entrepreneurial learning has to date focused primarily on the individual entrepreneur, their experience and their reflections upon that experience. It is argued in this paper that developing an understanding of learning as a part of social processes and behaviours would enrich the concept of entrepreneurial learning more broadly, but also particularly in the context of family business. Theoretical perspectives to support an examination of entrepreneurial learning in family business as a fundamentally social, rather than an individual, process are then introduced. In terms of learning theory this paper draws heavily on the work of Jean Lave and Etienne Wenger (Lave and Wenger, 1991;Wenger, 1998) who developed a radical view of learning as part of social practice, offering an alternative to cognitive, psychologically based learning theories. This challenging concept of learning as situated within, and part of, participating in social practices could provide a promising basis for analysing entrepreneurial learning in the context of family business. Their perspective, which is reported as relatively under developed empirically, views learning as embedded within, and as an inextricable part of, everyday social activity.

University of Central England Business School, Perry Barr, Birmingham, B42 2SU

Tel: +44(0)121 331 5200/5297 Fax: +44(0)121 331 6366

E-mail: paul.hannon@uce.ac.uk; professor.hannon@ntlworld.com Web site: www.uce.ac.uk

This paper aims to present thoughts and observations on the recent phenomenon of entrepreneurship education within higher education in the UK. The key challenge this paper aims to emphasise is the need for greater insight into the conceptual and theoretical development of the phenomenon and a more robust locating of the philosophical foundations of entrepreneurship education within an HEI adult learning context. Although concepts and models of entrepreneurship abound, it is difficult to find related concepts and models of entrepreneurship education, and in particular, their underpinning philosophical foundations. There exist philosophies of adult education that have emerged over decades but there appears to have been no attempt to locate entrepreneurship education within these contextual paradigms. This is somewhat surprising, as any underpinning philosophy will partially determine the outcomes of the educational process. However, this may help to explain why, conceptually, entrepreneurship education has mixed meanings and a conflicting discourse.

The paper introduces a framework of adult learning philosophies as a foundation for reflecting and analysing current practices against philosophical beliefs. The application of the framework leads to a discussion about the potential contrasts and conflicts between underpinning foundations and purpose-in-action. The paper concludes with a number of views concerning the building of an emerging robust concept of entrepreneurship education within an HEI adult learning context and proposes a typology of entrepreneurship educator types mapped against the framework of education philosophies.

This paper is not attempting to evaluate the practices currently employed within HEIs, nor is it attempting to provide any assessment of the relative value or merits of entrepreneurship education as compared to other subjects or disciplines offered by HEIs.

University of Central England Business School, Perry Barr, Birmingham, B42 2SU

Tel: +44(0)121 331 5200/5297 Fax: +44(0)121 331 6366

E-mail: paul.hannon@uce.ac.uk; professor.hannon@ntlworld.com Web site: www.uce.ac.uk

There are many tensions and paradoxes in the world of incubation concerning its purpose and its meaning, leading to confusion, misperceptions, and a lack of clarity and coherence about what role incubation has and could have across different contexts and environments and what effects incubation initiatives are likely to have on their locality. These challenges impact on many aspects of incubation and result in poor planning, management and governance, and inappropriate monitoring, target setting and evaluation.

The significant growth in incubation projects across the globe is a phenomenon and has enabled the ‘industry’ to develop in the way the notion of incubation is perceived and applied such that today incubation is identified in a number of policy documents as having a key role in the commercialisation of knowledge and research; in the creation of new ventures and firms; in the corporate development of large organisations; in the development of new products, processes, and innovations; and in the provision of entrepreneurial opportunities within deprived and disadvantaged communities. Incubation is applied across many industry and market sectors and aimed at a wide range of individuals and ventures. In so doing, incubation engages a significant diversity of stakeholders, customers and consumers.

This paper builds on the recent experiences of designing and piloting a management and leadership development learning opportunity for incubation professionals and practitioners in the East Midlands region of the UK, and subsequently for professionals and practitioners across Europe. A sense-making approach to understanding the complexities of effective incubation is presented. Titled the ‘4P’s of Incubation’ the framework focuses on the purpose, policy, process and practice of incubation. The framework is then applied to typical incubation environments.

The paper highlights the need for a more sophisticated classification of incubation environments. An illustrative typology is presented in the paper that is then discussed in detail thus emphasising how the application of sense-making frameworks may assist in improving the overall governance and effectiveness of future incubation investments. The paper concludes by discussing the broader need of capability building across the incubation ‘industry’ and how the approach in this paper can assist policy-makers and practitioners.

Kingston upon Thames, Surrey, KT2 7LB Tel: +44(0)20 8547727 Fax: +44(0)854 77140

E-mails: r.blackburn@kingston.ac.uk; m.hart:kingston.ac.uk

Tel: +44(0)28-90-261801 Fax: +44(0)28-90-330054 E-mail: m.anyadike-danes@qub.ac.uk

This paper seeks to investigate the complex relations between spatial variations in the age of the labour force and its potential outcomes for regional variations in entrepreneurship and ultimately regional prosperity. There is overwhelming evidence regarding regional variations in business start-up. The reasons for these variations include such factors as industrial structure, income levels, employment opportunities etc. However, there are also variations in start-up rates according to age of the population: the ‘age launch window’ phenomenon.

One of the major features of Western economies has been the growth in the size and proportion of the older population and a fall in younger age groups. Undoubtedly, this ageing process will be reflected in the labour force and its predominant life styles, attitudes and motivations. Currently, there appears no prevailing theory regarding the effects of this shift on entrepreneurship. There are of course a number of a priori assumptions regarding the effects of a growth in the third age population. On the one hand, the older population may be better placed to become successful entrepreneurs than the younger population because of their extensive work experience, higher likelihood of savings and household ownership and relative stability in lifestyle. On the other hand, older people may simply not wish to choose business ownership because of the attraction of other activities including leisure (Curran and Blackburn, 2001). Even when they do choose to enter business ownership this may be on a part-time or temporary basis rather than becoming a full-blown entrepreneur. Clearly, the effects of the ageing population are multifaceted. If there are variations in the propensity to start a business according to age, then what are the regional implications of the distribution of the population by age?

This paper will draw secondary data from the 2003 Global Entrepreneurship Monitor (GEM, 2004). It will analyse the relative attractiveness of business ownership between ‘prime’ and ‘third’ age cohorts in the UK. When set against spatial variations in the labour force, the paper will seek to induce the implications for this discussion of regional variations in entrepreneurship. To what extent will any potential shift in the age of the labour force ultimately lead to a growing disparity or convergence of new firm formation rates? Will this ultimately contribute to a widening or closure of prosperity between the regions?

Gusshausstrasse 8, A-1040 Vienna, Austria

Tel: (++43 1) 505 97 61, Fax (++43 1) 503 46 60

E-mail: e.heckl@kmuforschung.ac.at, Web Site: www.kmuforschung.ac.at

The Austrian Institute for SME Research is currently carrying out a study on ‘Women Entrepreneurs – Actual Situation and Chances for Development’ that will be finalised by October 2004. The aim of the study is to provide basic data on the issue of female entrepreneurship in Austria, as the study is the first of its kind, as well as to gain a basis for further research.

One focus of the study is to carry out a comparison of the business cycle development of enterprises led by women and men. Among others the development of the following indicators since 1999 in women and men led enterprises will be compared: Turnover, volume of orders, employees, investment, future perspectives. Furthermore the reasons of possible differences in the performance of female and male enterprises will be identified. This analysis will be based on the economic performance database of the Austrian Institute for SME Research among craft enterprises.

The second main issue of the study is to carry out a survey among more than 7.000 female entrepreneurs which is done for the first time in Austria. It is the aim of the survey to gain better insight in the following issues related to female entrepreneurship:

Which problems are women entrepreneurs confronted with in their daily business activities?

Which are the barriers that lead to a non-optimal exploitation of the potential of women entrepreneurs?

Which are the strength and weaknesses of female entrepreneurs?

Which are the support measures demanded by women entrepreneurs?

On the basis of the needs of women entrepreneurs options to support female entrepreneurship shall be drawn and should serve as signpost for the business policy in Austria. The paper shall present the results of the study.

1 El.Zahra St., Tamer & Eskan Building, Zahra El Maadi, Cairo, Egypt

Tel: +20 (0)1223 78144

E-mail: smesys@hotmail.com

Small and Medium Enterprises (SME) have remarkable role in social and economic development. This role is conditioned by SME’s entrepreneurs’ capabilities of interpreting the social needs into a product or service. SME’s entrepreneur as a human being, has a belief system, which is constituted by prefixed ideas. Knowledge composed of facts, heuristics and beliefs. Prefixed ideas in the belief system are classified into two types, prefixed heuristics or prefixed beliefs. Prefixed heuristics are set of ideas inciting entrepreneur to find out, while prefixed beliefs are set of ideas accepting entrepreneur to something as true or actual. Belief system constraint the entrepreneur visions and affect on his/her business decisions.

The field of Artificial Intelligence (AI) of computer science, succeed of simulate human being in many fields, on of these field is Belief Revision (BR), where a contradiction occurred between new and old information, this techniques used to solve this contradiction and detect the false information.

There is no reliable tool of revising and detecting false prefixed ideas of entrepreneur belief system, this one of the most SME’s entrepreneur problems in development process.

This paper aims at initiating some parameters of revising the belief system of SME’s entrepreneurs in order to support SME development. BR prototype applied on numerous cases of poor women, where the main way of their thinking are based on a set of prefixed ides. BR prototype includes four types of marketing domain: marketing segmentation, promotion tools, pricing and marketing strategies. Results of experiment conclude that false prefixed ideas prevent the development process.

Emek Hefer 40250, Israel

Tel: +972-9-8981306 Fax: +972-9-8981324

E-mail: sibylleh@ruppin.ac.il

The aim of this paper is to investigate the impact of organizational change upon entrepreneurship in communities such as the Israeli kibbutz. These communities, which underwent during the last two decades a process of crisis and change, pursue entrepreneurship for purpose of economic and social development and growth.

Based on a theoretical model that identifies how cultural orientations of individualism versus collectivism affect the entrepreneurial process in terms of generating variety and leveraging resources, I attempt to analyse whether and how the move from collectivism towards individualism influences the volume and type of entrepreneurship in community settings.

A comprehensive questionnaire has been administered to a sample of 60 kibbutzim in 1997 and in 2004. Since the level of analysis is the organization itself and not the individual entrepreneur, the questionnaire includes issues of organizational culture, structure and business orientation as well as reports on the ventures initiated during the relevant years. The data received by means of the questionnaire are analysed by quantitative statistical methods. In-depth interviews with office holders in a small number of kibbutzim add understanding of the underlying ongoing processes of change.

The preliminary empirical findings reveal a mixed picture: communities moving from collectivistic towards a more individualistic oriented organizational culture show a relative decrease of entrepreneurship in terms of number of initiated ventures. At the same time the more collectivistic oriented kibbutzim seem to hold on to unprofitable ventures due to occupational and social considerations. Two seemingly contradictive tendencies emerge: although in community settings resource leverage is characterized by induced strategic behaviour and venture policy is one of nurturing rather than of natural selection, cultural and structural changes promote the introduction of market criteria such as profitability and competition.

Dundalk Institute of Technology, Dublin Road, Dundalk, Co Louth, Ireland

Tel: +353-42-9370506 Fax: +353-42-9330944

E-mail:colette.henry@dkit.ie; kate.johnston@dkit.ie

Web site: www.entrepreneurshipresearch.com

35 Stirling Highway, CRAWLEY WA 6009; Australia

Tel: + 61 8 6488 2876 Fax: +61 8 6488 1047;

E-mail: John.Watson@uwa.edu.au Web site: www.uwa.edu.au

The contribution that women can make to the economy is increasingly recognised by academics, economists and policy makers. Women currently represent 40% of the labour force in advanced market economies and increasingly hold similar or higher levels of educational attainment compared to their male counterparts. In the UK, for example, 67% of women are in full-time employment, with 46% employed in managerial, professional and associated professional jobs. This has lead some researchers and policy makers to argue that women represent a valuable, yet still virtually untapped, source of entrepreneurs.

However, despite their growing economic importance, research suggests that gender still has an impact on accessing key business resources and consequently starting a business, creating barriers to women entrepreneurs. Women entrepreneurs’ account for a small percentage of all new business ventures, are concentrated in the services sector, are non-technology based and tend to be in the micro category, thus, they may have limited growth potential.

By way of expanding research in women entrepreneurs, this paper examines the views and aspirations of women entrepreneurs at the start-up stage toward business growth and the role of finance in facilitating this growth potential. Using data obtained from questionnaires and focus group discussion, involving a group of nascent women entrepreneurs in Ireland, the findings indicate that while women have given due consideration to growth, issues around job satisfaction; control and increased flexibility appear to be the principal factors in their decision to establish their own business. Other related issues to emerge from the study suggest that nascent women entrepreneurs in Ireland face ‘indirect’ or ‘stealth’ barriers when accessing funding, and that this is particularly the case when accessing bank funding.

Calle Hornos No.1003, Santa Cruz Xoxocotlán, Oaxaca, México, C.P 71230

Tel/Fax: +52+951+5171199

E-mail: jgiron@correoweb.com

If characteristics of craft business are: small size, low level of production, rudimentary process, small participation in the market, dispersed business and entrepreneurship intensity according to their owners personality, what factors are fundamental to gain competitiveness? This paper contributes to understand the competitiveness in the Mexican craft sector, a case of fragmented sectors.

In order to understand how a small local firm adapts to new challenges of the market is necessary to have a wide knowledge about what strategic tools mean and how are generated within the organization. The research on strategies has advanced, analysing and measuring the strategy in different industrial settings. In particular, the development of the focus on resources as a relationship among internal factors–external factors–competitiveness has provided an understanding about how companies adjust to environmental challenges. According to this focus, the strategic factors of businesses are analyzed in order to compete into fragmented industry.

A structured interview to 176 craftsmen was applied, in three states of Mexico (Oaxaca, Jalisco and Guanajuato). A path analysis was used to describe the causality level that there are among innovation, perception of generous environment, government supports, differentiation strategies and competitiveness. Three routes towards competitiveness were found, first with causal hierarchical order from Innovation to generous environment and competitiveness, second from innovation to supports government, differentiation strategies and competitiveness and third from innovation to differentiation strategies and competitiveness.

P.O. Box LG 78, School of Administration, Legon

Tel: +233 244 266988 Fax: +233 21 500026

E-mail: rhinson@ug.edu.gh

In order to reach per capita income of US$1,000 by 2012, Ghana must steadily increase its economic growth rate from its present level of 4-5% to 7-10%. The engine of this growth will be the private sector. The Ministry of Private Sector Development (MPSD) was set up in Ghana two years ago to be the engine of private sector growth and with innovation and entrepreneurship as one of its key mandates. The objectives of the study were to ascertain what the ingredients of Ghana’s entrepreneurship Policy are and also to ascertain challenges and achievements of entrepreneurship policies at the macro level. Series of in-depth-interviews were conducted with the Minister of Private Sector Development, the chief director of the ministry and technical advisors in the Ministry .The main tool for data collection in this study was the questionnaire. Questionnaire which comprised both structured and unstructured question covered issues of entrepreneurship development and how this fits into the global private development strategy. Constraints in implementing an Entrepreneurship strategy were also examined and finally a look was taken at private-public partnerships in fanning the flames of Entrepreneurship in Ghana. MPSD has done a lot of quality work in the Entrepreneurship arena. Notable achievements included facilitating orange growing and salt producing entrepreneurs financing and several entrepreneurship youth competitions have been organized with several thousands of dollars given out to start up young entrepreneurs. The Ministry is also funding Student in Free Enterprise (SIFE) activities. Another activity being organized is Captains of Industry Programme where documentaries are being produced to showcase and disseminate success stories of Ghanaian entrepreneurs to spur more Ghanaian youth on to becoming entrepreneurs.

Lancaster, LA1 4YX, UK

Tel +44 (0)1524 594847 E-mail: c.howorth@lancaster.ac.uk

Jubilee Campus, Nottingham, NG8 1BB, UK

Tel +44 (0)115 8466680 E-mail: paul.westhead@nottingham.ac.uk

Private family firms are generally viewed as a homogenous group. Casual observation suggests that this may not be a valid view. The use of an overarching family firm definition, and the failure to recognize contrasts between ‘types’ of family firms may impact on the validity and generalisability of research findings. Also, understanding the link between the ‘type’ of family firm and its performance is important for the development and efficacy of practitioner and public policy support.

Agency theory’s limitations in the family business and entrepreneurship context indicate it only provides a partial explanation of private family firm dynamics. In this paper, agency and stewardship perspectives are utilized to formulate a conceptual framework highlighting behavioural differences between private family firms. Variables relating to family firm objectives and ownership and management structures are used to empirically identify a taxonomy of private family firm ‘types’.

Data was collected from a stratified random sample of small firms in the UK. Seven ‘types’ of family firms were identified by a cluster analysis. Significant differences were detected between all seven ‘types’. Discriminant analysis confirms that the taxonomy is associated with high predictive validity. Characteristics of ‘types’ were identified using bivariate analysis and performance was compared using a vector of variables. Seventy percent of the family firms report goals and systems associated with a stewardship perspective, whilst the remaining firms align with the agency perspective. In total, 115 out of the 237 firms were members of cluster 6, which is regarded as the ‘average’ private family firm. Superior (and weaker) performance is associated with outlier family firm ‘types’.

Acknowledging that different types of family firms exist is an important step forward for family firms research and policy provision. Failure to recognize different types of family firms may impact on the validity and generalisability of previous research and could lead to the inappropriate provision of support to some types of family firms by practitioners.

Rehtorinpellonkatu 3, 20500 Turku, Finland

Tel: +358 2 481 481 Fax: +358 2 481 4393

E-mail: firstname.lastname@tukkk.fi Web Site:www.tukkk.fi/sbi

There is an increased need to carry out evaluation studies with respect to public policies and the related instruments. The citizens are keen to know that their tax money is well spent on effective public policies. Organisations that are involved in the planning and implementation of policies – whether as authorities or agents – also want some feedback that would assist them in improving the ongoing policy operations or the planned operations in the future. Although the need for evaluations is clear, it is not self evident how they should be conducted. The evaluation studies need to be reflective to the diversity in the objectives that enterprise education programmes can seek to achieve. Besides the different aims in different programmes there is also another factor that influences the evaluations, namely the different parties involved in the evaluation process: evaluators, programme promoters and policy-makers. In this paper we aim to provide insight into the different perspectives of the different parties involved in the evaluation (process) of enterprise and entrepreneurship education. The paper presents the results of a research project carried out in six European countries where altogether 30 experts were interviewed. The experts were selected from three different groups involved in the evaluations of enterprise and entrepreneurship education programmes: programme promoters, evaluators and policy makers. The analysis specifically focuses on the arguments given by the three different groups: evaluators, policy-makers and programme promoters for conducting evaluations and it will provide a comparative analysis of the arguments from the different perspectives. We have classified that evaluations of enterprise education and entrepreneurship training may have the following primary aims: monitoring, planning and impact analysis. If the parties involved understand these different roles for evaluations, it may facilitate the discussion about evaluations and their role in the entrepreneurship training programmes. Our research results suggest that ‘one size fits all’ evaluations are not possible in the field of enterprise education and entrepreneurship training. This derives from two main sources, firstly, from the heterogeneity of the aims for the enterprise education and training programmes and, secondly, from the different perspectives to evaluations. In the paper we will discuss the theoretical underpinnings of this variety and heterogeneity but also provide practical guidelines and managerial implications how to deal with different evaluations in relation to different types of programmes in enterprise education and entrepreneurship training.

12 Knight Street, St John’s, Worcester WR2 5DB

Tel/Fax: +44(0)1905 428733 E-mail: jjeynes@opalserve.fsnet.co.uk

The scheme:

The self-employment option is available through Job Centres for unemployed people on a range of benefits; government policy on business start-up. As contract holders in several regions of England, Partners for Business provide support & advice to clients through all three stages of considering the options/ preparing a business plan/ test-trading for 6 months. We also oversee a controlled bank account on behalf of clients.

Practical issues:

i) For clients these relate to timescales, resources available, and preparation of the business plan;

ii) For us as providers these relate to timescales of stages and individual client meetings, pressure on them depending on type of benefit received, and payment structures under contract agreement;

iii) Full range of industry sectors covered from professional services B2B, domestic services, IT & web design to corporate entertainment. Case study will include two successful and one unsuccessful business and explore the reasons why;

Advantages and disadvantages:

iv) Critical advantages of the scheme include ongoing provision of benefits throughout the scheme, help support and guidance from experienced business advisers with an opportunity to develop relevant business skills, plus a chance to bank money from the business ready for when the client signs off benefits;

v) Problems associated with the scheme include the skills and commitment of referred clients, time pressures on New Deal clients to start before their gateway ends, lack of funding, and geographic differences in success rates.

Conclusion: Evidence so far shows that this is an excellent scheme that really does help some clients achieve self-employment and leave the benefit system, but there are still areas where more needs to be done to improve success rates.

e-Adoption Ladders to encourage Small and Medium Enterprises into the Internet Age

The University of Teesside, Middlesbrough, Tees Valley, TS1 3BA, UK

Tel: +44(0)1642 342633 Fax: +44(0)1642 342618

E-mail: c.p.mohon@tees.ac.uk Web Site: www.tees.ac.uk/itresponse

A model of e-Adoption to encourage small and medium enterprises is described. The model is based on a tradition of improvement models from the world of quality assurance. A particular feature of the model is the investigation instrument that measures the e-capability of a small and medium enterprise, but in such a way as to encourage the enterprises towards improvement.

The IT Response Unit is an ERDF project operating in North-East Objective-2 region to promote use of ICT and particularly use of e-commerce among small and medium enterprises. The Unit has been operating since early 1999, and part of its work has been the evolution of an e-adoption ladder for the purpose of identifying specific IT improvements.

The e-adoption ladder uses levels consistent with quality improvement steps described by Deeming and Juran. The ladder has five levels. Get by; ad hoc use, some reports, some usefulness, not systematic. Effective; ICT is applied with good effect on several aspects of the enterprise. Operational; ICT is applied systematically to underpin all aspects of the enterprise. Integrated collaboration; the ICT systems are part-and-parcel of the enterprise they support and receive the same management attention to performance improvement and training as the rest of the enterprise. Effective e-business; an effective electronic interface is maintained with customers or suppliers, cost-effective outsourcing has been achieved and customer relations are managed for mutual benefit.

This model has been used with many enterprises, and examples are discussed from a sample of measures made in year 2004.

The names of each ladder step are under review, since they are considered to be influenced by technology available and business style. Alternative names and naming strategies are discussed, and a critique of existing e-adoption ladders is given.

The University of Teesside, Middlesbrough, Tees Valley, TS1 3BA, UK

Tel: +44(0)1642 342633 Fax: +44(0)1642 342618

E-mail: c.p.mohon@tees.ac.uk, Web Site: www.tees.ac.uk/itresponse

This paper investigates how software solutions might empower a Small or Medium Enterprise (Enterprise) to gain the benefits of e-commerce by engaging in electronic trade. The paper investigates the barriers that face an Enterprise as it attempts to work through the plethora of available software and its own unclear requirements. Analysis of focus group results and researching corroborative literature reveal the key hindrances to be the lack of knowledge and insufficient time to exploit e-commerce, leading to paralysing inaction when faced with the need to apply the business processes to a typically inflexible software package.

A definition and analysis of e-commerce is used to identify the generic functionality available to an Enterprise through e-commerce. The paper describes the development of a generic model of any Enterprise under the categories information flows, goods flows and financial flows. These categories are further elaborated by drilling down into the flows to identify ten sub-flows and thirty eight detail aspects of these flows. These flows are then structured into a framework, against which the functionality of various packages that facilitate e-commerce business and accounting can be measured. The framework is developed using the concepts of information aggregation and service integration, in order to layer incremental e-commerce development into the structure. These layers are e-operations, e-marketing, e-trade and e-service.

The framework is evaluated under three categories of use: mapping the abilities of e-commerce software packages, identifying the requirements of an Enterprise to engage in e-commerce, and defining the goals of Enterprise capability in order to engage in e-commerce.

This e-commerce empowerment framework can be used as a means of making visible to an Enterprise what is unclear and unstructured, and hence is a valuable tool for empowering the Enterprise towards e-commerce.

The University of Teesside, Middlesbrough, Tees Valley, TS1 3BA, UK

Tel: +44(0)1642 342633 Fax: +44(0)1642 342618

E-mails: d.a.jones@tees.ac.uk; the_duke247@ntlworld.com;

Website: www.tees.ac.uk/ITResponse

Captive portals are popular among wireless community and hotspot operators, since they provide user authentication and resource management solutions. The authentication is usually done via a central authentication server and any connections beyond that server are prohibited. A captive portal operates in two modes when dealing with wireless infrastructure: a closed captive portal and an open captive portal. In closed operation mode, a user must supply authentication credentials before an access is granted. In open operation mode, the user must accept the terms of use before an access is granted – this mode is usually deployed in public wireless networks.

The IT Response Unit configured the PatronSoft FirstSpot captive portal product that runs on Windows 2000 Professional/ Server, XP and Server 2003. We chose FirstSpot for this Windows ability, plus its ability to work with various models of wireless access points currently in the market. Features that made us feek it was a useful product are

· web-based authentication, with no client-side installation required

· anonymous mode support which requires no login credential apart from seeing a welcome page.

· self signup accounts, pre-paid airtime credit and credit card payment through PayPal.

· bandwidth throttling to avoid bandwidth abuse.

· flexibility in customizing login and welcome pages.The Unit deployed the Captive Portal at the IT Works Exhibition in St James’s Park, Newcastle upon Tyne, in June 2004.

Two difficulties were overcome; other WiFi transmissions were available, so we had to configure our system to a channel not used by any other band. And the layout of the space, being almost horseshoe-shaped with three steel-wrapped elevators in the centre, required the use of a Wireless Repeater as well as a Wireless Router to ensure the area was covered by our signal.

The benefits to business are clear. This is a accessible technology that can be implemented ‘out of the box’ offers secure WiFi connection and can be linked to income generation or marketing. The technology offers Small and Medium businesses low-cost access to creating secure wireless communities for business benefit.

Edinburgh, Scotland, EH14 4AS

Tel: +44(0)131 451 3858 Fax: +44(0)131 451 3296

E-mail: d.w.jones@hw.ac.uk

Edinburgh, Scotland, EH14 4AS

Tel: +44(0)131 451 8284 Fax: +44(0)131 451 8288

E-mail: w.keogh@hw.ac.uk

Edinburgh, Scotland, EH14 4AS

Tel: +44(0)131 451 8309 Fax: +44(0)131 451 3296

E-mail: r.mckinney@hw.ac.uk

According to the DTI’s document on Social Enterprise (2002) "Social enterprises create new goods and services and develop opportunities for markets where mainstream cannot, or will not, go." The governments overall aim is to try and integrate what has become known as social enterprise into an inclusive, growing economy. Whilst, at the same time, creating a dynamic and sustainable sector. Within this strategy, key policy objectives include contributing to a socially inclusive creation of wealth, helping to develop an inclusive society and assisting with active citizenship. However, identifying the social enterprise sector is extremely difficult -partly because of the nature of the organisations, partly because of the way they are funded or seek income and partly because of the myriad of services they provide. In other words this is an extremely complex issue to deal with.

Kearns (2000) makes the point that the face of non-profit organisations are changing and the boundaries between the sectors ie, public, private and non-profit are blurring as time goes on. "Not for profit" is a term coined by the US Internal Revenue Service for the categorisation of the tax treatment of social economy organisations and activities. It is also a philosophical or cultural position adopted by many in the wider social economy to describe their attitude towards the generation and/or distribution of profit from social enterprise activities and trading. This paper seeks to illustrate some of the difficulties with social enterprises, to highlight the environments in which they operate and to provide a framework to illustrate where social enterprises fit. Research has been carried out in three very different organisations and these are used as case studies to illustrate the successes, failures and difficulties of what has become known as the social enterprise sector.

Pontypridd, Trefforest, CF37 1DL

Tel: +44(0)1443 654128 Fax: +44(0)1443 482380

E-mail: wpjones1@glam.ac.uk Website: www.glam.ac.uk

This study analyses the blended e-learning model of the undergraduate Enterprise programme offered by the E-College Wales (ECW) initiative. ECW represents the e-learning arm of the University of Glamorgan Business School and offers a range of undergraduate and postgraduate programmes. The aim of the course is to develop entrepreneurial skills and thereby encourage business start-ups within Wales where such activity has been deficient. Specifically this study evaluates the blended pedagogical model that has emerged within this programme utilising a case study methodology encompassing both student and tutor perspectives. All key stakeholders within the programme including online tutors, students, scheme managers and designers were interviewed utilising semi-structured questionnaires. Thereafter focus groups were utilised within partner colleges to ensure all relevant perspectives were captured. Blended learning and enterprise education remain unexplored within the extant literature. The development of e-learning presents challenges for educational providers in terms of their need to re-engineer themselves to cater for the different demands of this learning frontier. A conceptual framework is posited as a model of best practice for a blended e-learning enterprise initiative. Moreover key strategies to support the pedagogical model are proposed including accreditation of prior learning (APL), experiential learning (APEL) and flexibility in course structure and assessment strategy. This study contributes significantly to the limited literature in this field in terms of proposing a working framework for undergraduate enterprise education via e-learning with identification of critical success factors. The study can be utilised as a practical guide in the effective management of pedagogical issues associated with blended on-line enterprise education.

Edinburgh, Scotland, EH14 4AS

Tel. +44(0)131 451 8284 Fax: +44(0)131 451 8288

E-mail: w.keogh@hw.ac.uk

Jordanstown Campus, Co. Antrim. BT37 0QB

Tel: +44(0)28 90368146

E- mail: r.mcadam@ulster.ac.uk

Edinburgh, Scotland, EH14 4AS

Tel: +44(0)131 451 8285 Fax: +44(0)131 451 8288

E-mail: e.donnelly@hw.ac.uk

There is a recognition of the need to professionalise business incubator management. However this is just one factor in the launch, development and operation of a business incubator. From the university’s perspective, they are looking for additions to the knowledge levels and innovative capacity from the university. There are many types of incubators currently being developed across Europe linked with universities (NB incubators sometimes known as innovation centres) and this paper seeks to identify some of the issues, problems and successes associated with launching new business incubator units.

Using two recently launched business incubators from Northern Ireland and Scotland, key aspects are identified and explored. These include, entrepreneurship training, technology support and business support. Setting up and running an incubator are defined in different ways by different groups. However, if we look at the pre-operation phase, the function of the incubator and its subsequent evaluation, then we can break some key aspects down. In setting up an incubator the university and partners have to consider set-up costs, the incubator space to be built and the number of tenants forecast for that incubator. As the incubator is operating, issues such as operating costs, occupancy rates, length of tenancy, and the percentage of management time spent on running the incubator have to be considered. It is not just an aspect of putting these costs into capital expenditure and operating expenditure, incubators can be costly in time and effort from the university and its partners. When the incubator is up and running, then evaluating its performance is very important for issues such as continuation of funding, attracting new client companies and developing organisations to the extent that they can leave and move on to the next stage.

Guildford, Surrey, GU2 7XH

Tel: +44(0)1483 68 3989 Fax: +44(0)1483 68 9511

E-mail: D.Kirby@surrey.ac.uk

For some time Governments around the world have been concerned to develop successful New Technology Based Firms (NTBFs) and incubators and Science Parks have been promulgated as a means of facilitating their development. This paper examines the existing body of knowledge on their role and performance and considers both their limitations and the lessons learned. It argues that both have to be embedded in the local milieu and that rather than being seen as discrete entities, pre-incubators, incubators and Science Parks should be seen as a continuum in a fully integrated incubation process. The paper demonstrates the concept through an examination of the model developed at the University of Surrey and calls for a controlled experiment to assess its applicability in different contexts and environments.

P.O.Box 56, Dunedin, New Zealand

Tel: +643 479 8523 Fax: +643 479 8173

E-mail: jkirkwood@business.otago.ac.nz Web site: www.commerce.otago.ac.nz/mgmt/

Why are people motivated to become entrepreneurs? Previous studies suggest a desire for independence, to make money, for a challenge or to get recognition, and work and family reasons motivates people to become entrepreneurs. It is often concluded that women’s and men’s motivations for becoming an entrepreneur are similar, yet empirical studies that compare women and men directly are relatively limited.

This study employs a multiple paradigm research methodology. The first paradigm mirrors much of the prior literature. A mail survey was designed, and responses were received from 289 entrepreneurs. While no statistically significant gender differences were found here, using another lens and sociological and feminist perspectives uncovers many gender differences in the motivations for becoming an entrepreneur. The second paradigm is a constructivist one, aimed at exploring two motivations (work and family) comprehensively. In depth, face-to-face, semi-structured interviews were conducted with 50 of these entrepreneurs (25 women and 25 men).

The findings from this second paradigm suggest men are motivated to become an entrepreneur because of dissatisfaction with their jobs, and a desire for independence from an employer. In terms of family motivators, women consider their families (especially children and domestic partners) in their decision to become an entrepreneur, whereas men appear to be motivated by a desire to outdo their fathers or prove something to their families.

The prime objective of this paper is to contribute to theory development. Two models are proposed to explain gender differences in motivations to become an entrepreneur. They offer new contributions to theory by suggesting that women entrepreneurs construe themselves as interdependent, and this impacts their motivations to become an entrepreneur. Alternatively, men participants tend to be motivated by internal factors, and this suggests that they have a more independent construal of self.

Kenry House, Kingston Hill, Kingston upon Thames, Surrey KT2 7LB

Tel: +44(0)208-5472000 x65355

E-mail: j.kitching@kingston.ac.uk

Social inclusion has become a key component of New Labour government policy, embracing a wide range of issues including employment, education, housing, family, health and crime. Using data from a study carried out in South London, this paper offers a contribution to understanding the part small businesses may play in enabling the government to achieve policy objectives regarding the employment dimension of the social inclusion agenda. Businesses in six broad sectors were included: hospitality; health and social care; computer services; construction; financial services; retail and distributive services. Specifically, the paper investigates the roles played by small employers, employees, job-seekers and labour market intermediaries in shaping labour market outcomes for four groups of workers/job-seekers conventionally regarded as ‘disadvantaged’ - lone parents, ethnic minorities, the disabled and older workers (the target groups). The paper highlights a number of factors perpetuating the labour market disadvantage experienced by many workers/job-seekers in these groups and accounts for their persistence. It concludes that policy interventions aimed at improving employment prospects for disadvantaged groups may be able to ameliorate the difficulties encountered by some members of these groups in finding and retaining jobs, but that this may be at the cost of further marginalising other members of these groups.

Bd André Siegfried, Mont Saint Aignan, France

Tel: +33 23 282 5838 Fax: +33 23 282 5833 E-mail: rita.klapper@esc-rouen.fr

E-mail: leger@dauphine.fr

This paper introduces the initial findings from a research study conducted among students of two French educational institutions: the Ecole Supérieure de Commerce (ESC) Rouen and the University Paris Dauphine. There is two strands to the methodology: a survey has been conducted among the two student populations to obtain both quantitative and qualitative data which is complemented by a number of qualitative interviews. The study employed Shapero’s model of entrepreneurial intention which integrates four elements, i.e. entrepreneurial experiences, perceived desirability, perceived feasibility and entrepreneurial propensity, to draw conclusions about the entrepreneurial intention of the students.

In line with Shapero’s model the study aimed to

· Characterise the students’ understanding of the terms entrepreneur and entrepreneurship & explore their attitudes towards entrepreneurship

· Explore the differences and similarities in attitude towards and understanding of the term entrepreneurship among Grande Ecole and university students

· To contrast the differences and similarities in attitude towards and understanding of the term entrepreneurship among those students who had attended entrepreneurial courses and those who had not

· Examine the breadth and positiveness of the students’ entrepreneurial experiences

· Investigate the future career intentions of the students with regard to entrepreneurship

The research study has confirmed that neither at a Grande Ecole nor at a university students do necessarily want to create. Many, in fact, want to work in large organisations, but virtually nobody wants to take over a family business. If the students did not wish to create this was neither due to negative experiences nor fear but rather due to a lack of competences and professional experience. The paper concludes on the optimistic note that whereas entrepreneurship education does not necessarily succeed in increasing the number of actual creations in the short-term it remains an important element in both triggering interest in enterprise creation and developing an entrepreneurial spirit.

East Road, Cambridge, CB1 1PT UK

Tel: +44(0)1223 363271 Fax: +44(0)1223 417700

E-mail: d.knowles@apu.ac.uk

Internationalisation of SMEs is an increasingly important aspect of the maximisation of business opportunities. Decision-maker characteristics are regarded as a principal element in the development of overseas activity as they form the basis of the firm's international stance.

This paper considers findings from an empirical project on the internationalisation of SMEs.

Success in international trade seems indeed to be accompanied by elements of strong international orientation. The paper elaborates on this finding using qualitative evidence. The only activity to be rated almost equally by the "successful" decision-makers and the other groups was language learning in the company.

The decision-makers of the successful companies were notably more likely to have foreign language skills than those in the other groups. The "successful" group was also the only group to include self-reported skills at the highest level.

However, comparison of the countries in which the firms were dealing with the languages in which decision-makers claimed skills shows very clearly that the decision-makers of the "successful" international companies were often not using their foreign language skills in business.

The paper examines the foreign language use of decision-makers in successful international SMEs and locates this within their broader international orientation in order to explore the decision-maker characteristics that accompany such success.

BIC Wearfield, Sunderland Enterprise Park (East), Sunderland SR5 2TA

Tel: +44(0)191 516 6767

E-mails: Karen.langdon@businesslinktw.co.uk; tim.pain@businesslinktw.co.uk

The latest iteration of a government sponsored – but not owned or run – business support service has been modelled on three main functions: information (I), diagnosis (D) and brokerage (B). The headline measures of penetration, awareness levels, customer satisfaction rates and Gross Value Added are designed to ensure customer experience is at the forefront of all Business Link Operators’ minds. The brand magicians have waved their wands and the access channels are open.

A pilot project to explore these concepts in practice was launched late 2003 to see how an ‘extended brokerage’ service could be developed utilising key partners’ premises, staff, knowledge base, networks, customers. The first partners were a bank, an enterprise agency, and a local authority. The tribulations and triumphs of the pilot phase will be explored and the likely future shape of ‘extended brokerage’ in Tyne & Wear discussed.

The expected outcomes of the pilot were that:

· The network of business support services would be more demonstrably simpler, more comprehensive and coherent to the customer .

· New customers would be attracted to the network to Business Link;

· Partnership working and cross-referrals would improve, ensuring an enhanced service to the customer through a ‘no wrong door’ approach;

· A model would be developed for business support regionally.

This paper will explore the lessons learned from the practical implementation of the pilot for the future co-ordination of business support projects and programmes in the North East region.

Private Box 756, Wellington, New Zealand.

Tel: 64 4 8012794 Fax: 64 4 8020290

E-mail: K.V.Lewis@massey.ac.nz

As the body of knowledge on small and medium enterprises (SMEs) has grown, the focus of empirical work has become increasingly diverse. A topic that has remained a priority for researchers is the ‘profile’ of an SME owner-manager – either as a means of understanding the characteristics of a ‘successful’ individual or to better predict what intentions, goals, or strategies pave the way to firm growth. As a means of capturing such data a number of useful descriptors and typologies have been put forward, including those that focus on making the distinction between growth rejecting and growth enthusiastic SME owner-managers.

One such descriptor that has achieved consistent use, and perhaps abuse, is that of the ‘lifestyle’ SME owner-manager. This has come to be considered a well-understood and useful manner in which to describe those SME owner-managers that share certain characteristics (i.e. have micro firms, operate to achieve personal objectives or a satisfactory level of income, and are growth averse). However, as the nature of owner-manager intentions and firm growth becomes better understood there comes a time for alternative descriptors to be put forward. If only to stimulate debate and ensure that those historically accepted terms are still those that best fit the reality experienced by SME owner-managers of the 21^st century.

This paper reports on the findings of a project that studied New Zealand SMEs in the context of business growth. Site visits and in-depth interviews were carried out with the owner or manager of a random sample of 50 firms throughout New Zealand. This paper contributes to a better understanding of SME growth and the applicability of business growth models to SMEs in a New Zealand context. It also puts forward an alternative categorisation of those individuals that have thus far in the literature been described as ‘lifestyle’ owner-managers.

Vicarage Street, Luton, LU1 2JU

Tel: +44(0)1285-743457

E-Mail: jun.li@luton.ac.uk

Southend, Princess Caroline House, 1 High Street, Southend-on-Sea SS1 1JE
Tel: +44(0)1702-339888 Fax: +44(0)1702 339808

E-mail: jmitra@essex.ac.uk

As the clusters agenda for economic regeneration shifts from the national stage to that of regional development agencies (RDAs) in the UK, increasing attention is being paid to the constituent factors that account for effective clustering. While clustering research has paid disproportionate attention to issues at the macro level, notably links of clusters to innovation and regional development, little attention has been given either in policy circles or in entrepreneurship research to firm behaviour within clusters. Our previous paper (Mitra and Li 2003), presented in last year’s ISBA conference, has shown that the intensity of participation in clusters varies from firms to firms and that most clusters studied consisted of a minority of leading players, supported by a sizeable proportion of active participants, with the most common form of member participation being as reactive follower. The differences in the intensity of clustering participation are most likely to display various patterns of firm-specific behaviours and to be defined by contextual factors. The investigation into the patterns of firm-specific behaviours and the contextual factors will further improve our understanding of how firms, especially small and medium sized enterprises (SMEs) behave in clusters and what contextual factors influence their clustering behaviour.

The research, based on 2 separate research and development activities in the West Midlands, supported by the European Commission, was carried out by means of a telephone survey with 100 SMEs. Cluster analysis was carried out on the data collected for grouping entities into groups that are deemed coherent according to the attributes of behavioural variables and contextual variables among firms. Each group is also distinguished from others according to these attributes.

The authors cover new ground in their effort to identify patterns of firm-specific behaviours in clusters. The paper ends with some important policy considerations.

Chatham Building, Chatham Street, Liverpool, L69 7ZH

Tel: +44 (0)151 795 3721 Fax: +44 (0)151 795 3001

E-mail: lockpaul@liv.ac.uk Web: www.liv.ac.uk/ulms

This critique follows on from Chell’s (1986) questioning of the limited theoretical justification and lack of generalisability of Kets de Vries’s (1985) description of entrepreneurial personality types with dysfunctional family and career backgrounds. Expanding on Chell’s assertion that such controlling personality types could equally well have followed other routes in life, I set out to argue that Kets de Vries's plot line is more humanistic than entrepreneurial (cf. Pirandello's "Six Characters in Search of An Author"). It is intended to present Kets de Vries’s plot line, the "inner theatre" or so-called dark side of the entrepreneur, as a generic play within a play, the dark side of leadership personality. It will be shown that both of these plays are acted out in a dysfunctional theatre of the Absurd and of the irrational (Kets de Vries, 1999).

By superimposing the dramatic and narrative hermeneutic lenses over Kets de Vries's own pyschoanalytic lens, the resultant deconstruction or unravelling of his 'text' neatly underpins not only his psychodramatic representation of the dark side, with its use of theatrical convention in the dramatic and epic traditions, but enables reconstruction from a different authorial perspective, using a common sense as opposed to a clinical paradigm. In so doing, we may begin to explore the inter-connectivity of content and structure, and the location of subject matter within a sub-genre of narrative psychology. In this paper I mimic ‘artistically’ my future narrative hermeneutical search for ‘clues’ or evidence of themes in my smaller, real life theatres or emergent ethnodramas.

NARF, Øvre Vollgt. 13, PB 99, Sentrum, 0101 Oslo, Norway

Tel: +47 23356900 Fax: +47 23356920

E-mail: joergen.lund@narf.no Web site: www.narf.no

Breivikveien 40, 5045 Bergen, Norway

Tel: +47 55959696 Fax: +47 55959430

E-mail: paul.gooderham@snf.no Web site: www.snf.no

For many small and micro firms the external accountant and financial adviser is a significant source for accessing profit-enhancing knowledge. Using six in-depth studies of business advisors (accountants) interacting with small and micro firms clients this paper analyses the relational capabilities and conditions which the business advisor and client must develop in order for the client to assimilate, manage, exploit and further develop profit-enhancing knowledge.

The analysis is founded on Knowledge Management theory drawing in particular its insights from "The theory of the firm as a knowledge creating entity" (Nonaka, 2000). As opposed to Neo-classic economic theory, Transaction-Cost theory and Principal Agent theory, which focus on the problem of access to information as a question of unbounded or bounded rationality, Nonaka views this problem as more complex than simply obtaining the best access to the most relevant external resources. Access is in itself a complex process, in which new knowledge must be recognised as valuable and assimilated in the small and micro business culture. In other words, these clients must have the capacity to absorb new, performance-relevant knowledge (Cohen & Levinthal, 1990; Parsons & Shils, 1962). In line with Nonaka (2000) this absorption presupposes a dynamic relational process between the BA and the client company, where relevant information is continuously processed in order to create new relevant knowledge.

The case studies of "best practices" show that in those cases where the BA is able to improve the value creating activities and profitability of the client company, they invariably invest considerable effort into building the shared context of cognition and action that Nonaka refers to as Ba.

Middlesex University, The Burroughs, Hendon, NW4 4BT;

Tel: +44(0)208 411 6856 Fax: +44(0)208 411 6607

E-mail: f.lyon@mdx.ac.uk

There has been considerable policy interest from a number of government departments concerning the role of enterprise in reducing levels of deprivation and social exclusion. This paper examines the challenges in measuring the impact of these interventions and the difficulties in providing the evidence base needed by policy makers to make decisions about future programmes and knowing what works.

Based on a number of empirical studies on the impacts of different types of enterprises in deprived areas and evaluations of business support programmes, four key challenges facing evaluators are explored. Firstly, the underlying tension between economic rationales (growth, competitiveness, productivity) and social rationales (reducing worklessness, social inclusion) can lead to a lack of clarity in objectives and hence difficulties in selecting criteria against which the project can be evaluated.

Secondly, the nature of the deprivation requires a wide range of indicators to measure impact. These include impacts on employees, owners and those who have tried self employment and not continued, in terms of incomes as well as softer impacts such as confidence raising and skills. The extent to which enterprises in deprived areas employ local residents can vary considerably, with some evidence that people living in deprived areas are best served by employment outside the deprived area. The impact in terms of services provided, multiplier effects of local spending and building social capital can also be measured.

Thirdly, existing government data sources are limited and there are considerable difficulties in collecting data due to the high levels of business churning (particularly among those previously unemployed), movement of growing firms out of the deprived area and suspicion from those operating in the ‘informal’ sector. Finally, the large number of programmes and initiatives in these locations can make measurements of additionality of the support difficult.

Private bag X 6011, Port Elizabeth, South Africa, 6000

Tel: (+27) 82 374 2651 Fax: (+ 27 41) 504 9890

E-mail: gideon@petech.ac.za Web Site: www.petech.ac.za

It is a generally accepted fact that the global environment is going through rapid changes. Higher educational institutions (HEIs) cannot distance themselves from these changes. HEIs should change from a traditional role to an institution that plays a major role in the socio-economic development of regions. The South African environment in which HEIs operate increase the complexity if promoting entrepreneurship.

Deduced from above the main research problem can be stated as follows: What methods should be utilised to accelerate the development of young entrepreneurship at HEIs? The underlying assumptions of this study are that visibility of student entrepreneurs on campus can motivate others to become more entrepreneurial and that science, engineering and technology related entrepreneurs could have bigger spin-off effects than other entrepreneurial activities. However, the most important assumption is that HEIs realise the importance of entrepreneurship development and will allow student to develop and grow into entrepreneurs whilst at their campuses.

A contextual model was developed and is currently being tested. It is the intention of this paper to provide and overview of this contextual model and to invite further refinements on this model. The authors have travelled the world extensively and are of the opinion that this model can help other developing countries accelerate entrepreneurial development in their respective countries.

Academic Enterprise, University of Salford, Salford, Greater Manchester, M5 4WT

Tel: +44 (0)161 295 3000 Fax: +44 (0) 161 295 5494

E-mail: M.Semmens@salford.ac.uk Web Site: http://www.salford.ac.uk

The University of Salford identifies itself as an enterprising university, which uniquely has a third strand of core activity, Academic Enterprise. This strand is dedicated to providing a focus for enterprise innovation, networking, partnerships, commercial activity, funded programmes and training and development. Academic Enterprise works closely with academic staff and students throughout the university to apply knowledge and expertise and engage small businesses and the community throughout the region.

Academic Enterprise is currently working towards incorporating the principles and skills of enterprise and entrepreneurship throughout the four faculties of the university so that all students and graduates are exposed to this learning.

The Enterprise Learning Project aims to provide the opportunity for each enrolled student to gain entrepreneurial skills. Research is being undertaken to identify existing enterprise activity within each faculty and how existing enterprise modules can be built upon and introduced into each school. The university also offers a postgraduate degree (MEnt) Tech, which has been designed to prepare people for careers as high technology entrepreneurs. Ongoing support will also be available to students following graduation through the Business Enterprise Support Team who run a series of business workshops and offer mentoring for new start-ups.

This paper explores how enterprise learning and entrepreneurship is being introduced into the University of Salford in line with the individual needs of students, staff and the business community, through both incorporating enterprise into the curriculum and extra curricular support. Specific reference is made to support available to potential high technology entrepreneurs. Finally future plans for the continuation of the introduction of enterprise and entrepreneurship into the university’s activities are considered.

Al-Faisal University, P.O. Box: 447, Abha, Saudi Arabia

Tel: 096672310800 (Ext 144) Fax: 096672310803

E-mail: heshammagd@hotmail.com

Self-employment in the UK has been risen by 70% since 1979, and the highest rise has been among those without employees and the female self-employed in the UK, and in different countries. The increase in self-employment and venture creation in the UK has been much faster for women at 123% compared to 46% for men since 1979. Women now account for one quarter of all the self-employment in the UK. It is clear that female entrepreneurs are of importance to the UK economy and the UK SME sector. However most of the research has focused on male entrepreneurs and researchers have ignored any research, which focuses on women entrepreneurs in Scotland. Consequently, female entrepreneurship has been in the public eye recently, and the government is making different efforts to encourage women to create their own ventures. It is important to study female entrepreneurs. The researcher intends to identify any differences among female and male entrepreneurs in venture creation through the start-up process, to help and encourage female entrepreneurs in setting up more businesses in the UK. The literature review offers many different opinions concerning gender in SMEs, but there is little empirical research has been carried out in the UK and more specifically Scotland. The purpose of this study is to assess any gender differences in business start-up process in the Scotland through a structured mail survey. The sample of companies used in this study was obtained from the FAME-CD-ROM UK corporate database. To achieve the objectives of the study, an exploratory study was carried out on a sample of 500 owners/managers of Scottish SMEs. Once all the information had been received, statistical techniques were used to analyze the data collected. The results of this study are expected to be useful for further improvement and acquisition of knowledge concerning SMEs start-up process and interesting for practitioners and academia that are interested with the current situation of business start-up process in Scotland.

Al-Faisal University, P.O. Box: 447, Abha, Saudi Arabia

Tel: +966 7231 0800 (Ext 144) Fax: +966 7231 0803

E-mail: heshammagd@hotmail.com

E-business is identified as any net business activity that transforms internal and external relationships to create value and exploit market opportunities driven by new rules of the connected economy. Moreover, e-business is recognized for its ability to improve efficiency and enable organizations to target market opportunities of performing business under new electronic channels, which revolve around the Internet. This imply that e-business comes in many forms and can be implemented to a very small or large degree. In addition, it is noted that the Internet and Web are vital components of an e-business/commerce strategy. E-business has been recognized for its importance to the UK economy, where it enables revolutionary change in two ways: ‘process’ e-business – managing the vital flows of information within industry supply chains – and ‘transaction’ e-business, selling products and services within industry or to consumers. It can result in reduced costs and the transformation of organizations, markets, as well as bringing new opportunities and capabilities to consumers. E-business is seen as an extremely attractive option to Small and Medium Enterprises (SME). It is noted that through the implementation of e-business within this sector, they are anticipated to capture global markets, sell to international customers and compete favorably with large organizations. However, there are few studies on the actual adoption of e-business in Scottish SME. This study creates an interesting snapshot of e-business adoption by such Scottish companies, by exploring issues such as the rate of e-business system implementation, benefits of e-business implementation, cost of e-business, the factors contributed to the successful implementation of e-business, and the problems associated with e-business implementation. To achieve the objectives of the study, an exploratory study was carried out on a sample of 200 managers/owners of Scottish SMEs, as these organizations play an important role in the Scottish economy. Once all the information had been received, SPSS used to analyze the data. The results of this study are expected to be useful in enhancing the knowledge on e-business within the SME sector.

Gusshausstrasse 8, A-1040 Vienna, Austria

Tel: (+43 1) 505 97 61 Fax (+43 1) 503 46 60

E-mail: i.mandl@kmufoschung.ac.at, Web Site: www.kmuforschung.ac.at

In 2002, the Austrian Institute for SME Research carried out its second study on business transfers to improve the quantitative basis for observing and assessing the transfer process in Austria. Thereby, the model to estimate potential transfer cases in the coming decade designed in 1999 was refined and updated, enabling a breakdown by industry by taking into account structural and economic restrictions on the transferability of enterprises. Moreover, in an empirical survey the characteristics of transfers realised since 1996 were examined, showing the main reasons for failures of successions and recommendations for measures to simplify the general conditions.

From 2004 - 2013, approximately 51 500 Austrian SMEs employing about 438 000 persons will have to face a transfer. This corresponds to about 23 % of all Austrian businesses, whereby mainly smaller companies are affected. In general, business transfers can be considered as re-starts of existing enterprises.

Business transfers in Austria are characterised by a lower drop-out rate (about 4 %) than start-ups (approximately 25 %) and have positive effects on the labour market. However, approximately 14 % of the transferred companies face major business difficulties. During the last years a declining tendency of transfers because of age reasons and within families could be observed.

Although the importance of planning a business succession is always stressed, only the minority of Austrian businesses concerned has a specific, written plan. Particularly in family businesses there is no plan in many cases, being one of the main reasons for failure of business successions.

Recent years have seen an improvement in framework conditions in Austria in terms of legislation and "soft aid" facilitating the business successions. However, the results of this study and an international comparison indicate that these measures could be developed even further, e.g. regarding fostering awareness-rising measures, increasing transparency or improving entrepreneurial education.

Unit CW10 Design Works, William Street, Felling, Gateshead, Tyne & Wear. NE10 0JP

Tel: +44 (0)191 4959500 Fax: +44 (0)191 4959501

E-mail: enquiries@yene.org.uk Web Site: www.young-enterprise.org.uk

Young Enterprise is the leading enterprise education organisation in the UK. Every year some 200,000 young people aged 5 – 24, take part in Young Enterprise programmes, supported by over 11,000 volunteers from the business community.

Young Enterprise is a registered charity, which was formed in the UK in 1963. It is part of a European network involving 35 member countries, and is also a member of a worldwide organisation, Junior Achievement, which has over 120 member countries. 

Young Enterprise works on an ethos of partnership with the business community, developing strong links between that business community and education institutions. This provides an impressive network of human resource to support the individual programmes, bringing a wealth of knowledge and expertise into the communities in which it works.

Young Enterprise has an enviable record of success in engaging Industry and encouraging involvement with the Education sector, working to encourage youngsters to display their entrepreneurial flair. This entrepreneurial spirit is paramount if we are to raise the competitiveness of the UK for the future and encourage more of our young people to become involved in enterprise activities.

This presentation will take you through the portfolio of Young Enterprise programmes and how they develop attitudes and skills in young people, to enable them to learn and succeed through enterprise. From the Primary programme through to the Graduate Programme, Young Enterprise has developed a series of quality, progressional programmes which are interactive, innovative and fun. It will highlight how programmes can enhance the curriculum, but more importantly, the role our work plays in helping to develop a true entrepreneurial culture within the UK.

Faculty of Business and Law, The Gateway, Leicester, LE1 9BH.

Tel: +44(0)116 2577236: Fax: +44(0)116 2517548

E-mail: smhum@dmu.ac.uk

The SBS have recently drawn attention to the issue of skills gaps in small firms noting that a poor or inappropriate skills base and a lack of competencies to effectively apply such skills impairs firm durability and business performance. To investigate this proposition further, this paper will draw upon recent empirical evidence gathered within the East Midlands. This research aimed to identify skills gaps experienced by small organisations within seven specific sectoral clusters identified by the East Midland Development Authority (EMDA) as critical to the future economic development of the region. To gain a full and multi-faceted perspective upon the skills gap issue, the study identified a range of local stake holders able to offer informed opinion upon this key theme. Hence, lengthy interviews were initially conduced with representatives of local trade associations or those in a similar position for each cluster, this was followed by focus group discussions with small firm owners, two of whom from each focus group then contributed to a training needs analysis exercise where issues regarding work place skills were considered in depth.

This paper will offer the initial findings from this study for discussion and consideration. Drawing upon views from the range of stake holders across a number of clusters, it emerges that there is little support for the current governments aim to expand the number of graduates in the labour market, there is considerable support for Modern Apprenticeship type schemes, there is frustration with the general lack of literacy and numeracy amongst younger employees, wide cynicism regarding the utility of NVQs and little faith in IiP. However, it was notable that in contrast to broader research findings, the respondents did not feel that poor business ownership or management skills were a significant problem for most small firms.

Next to R. A. Podar College, Mumbai – 400 019, India

Tel.: +91-22-2417 8300 Extn.: 739/740.

E-mail: daffodils6461@yahoo.com Web site: www.welingkar.org

This paper reviews the key factors that have impacted upon India’s SMEs and on their role in the current globalised economy and makes a critical analysis of the policy issues currently facing India with regards to SME development. The main topics covered include:-

· Characteristics, definition, overview and performance of India’s SMEs - including a discussion of the definition of SMEs in India vis-à-vis other countries.

· Industrial reforms and impact of changing economic policies on Indian SMEs (1948-2002) - including an analysis of the contribution of SMEs to the total GDP.

· Institutional Framework of SME Support – A comparison of India with 4 countries.

· Impact of Globalisation on SME development in India and appropriate measures to support globalisation functions in various industrial sectors related to the SME segment.

· Latest trends, applications and sectors that make India’s SMEs thrive in global markets.

· Innovation, investment and management skills and the changes in Indian setup needed to support the institutional, financial and marketing framework of the SME sector.

· Various policies that the Government of India has introduced in order to facilitate skills, finance and new technologies in achieving their full growth potential.

In India’s case, SMEs are the second biggest employment generators after agriculture, providing jobs to over 9.2 million people. This sector accounts for 39 per cent of industrial production and 34 per cent of exports.

It is estimated that there are approximately 350 SME urban clusters and 2000 rural clusters in India contributing almost 60% of India’s manufactured exports.

Glasgow G1 1XH

Tel: +44(0)141 548 4259 Fax: +44(0)141 552 7602 E-mail: colin.mason@strath.ac.uk

Glasgow G1 1XH

Tel: +44(0)141 2409 Fax: +44(0)141 552 2802 E-mail: s.k.tagg@strath.ac.uk

Glasgow G1 1XH

Tel: +44(0)141 548 3276 Fax: +44(0)141 552 7602 E-mail: s.carter@strath.ac.uk

One of the Labour Government’s key achievements has been the introduction of a National Minimum Wage (NMW). This was designed in conjunction with tax credits to ‘make work pay’ and thereby attract economically inactive people back into work. The NMW was introduced on 1 April 1999 and has been increased twice since then, most recently in October 2003 when the adult rate (those aged 22 and over) was raised to £4.50 and the Development Rate (for those aged 18-21) was raised to £3.80.

Critics of the NMW claimed that it would damage the economy and result in job losses. In fact, the reports from the Low Pay Commission and elsewhere suggest that these fears have been unfounded, at least until now. The NMW has brought benefits to many low paid workers without any apparent significant adverse impact on the economy or employment.

This paper is the first to evaluate the impact of the October 2003 uprate in the NMW on SMEs in the UK. It is based on 18,635 responses (a 12% response rate) to a postal survey of members of the Federation of Small Business, the largest small business representative group in the UK. The number of responses makes this by far the biggest SME survey in the UK. The survey was mailed out in October 2003, precisely the time when the increase in the NMW came into effect.

The paper seeks answers to three questions. First, does this latest increase in the NMW maintain its benign impact on the business sector? Second, what adjustment mechanisms, if any, have SMEs used to cope with the increase in the NMW? Third, has the uprate of the NMW had a differential impact on the SME sector? Specifically, has the impact been greater in some sectors and in some regions than others? The size of the sample – which is much larger than those used by the Low Pay Commission in its own research – enables us to provide authoritative answers to these questions. In the light of evidence that the impact has varied regionally the paper concludes by considering whether the NMW needs to vary between regions.

Private Box 756, Wellington, New Zealand

Tel: +64 (4) 8012794 Fax: +64 (4) 8020290

E-mail: c.l.massey@massey.ac.nz Web Site: http://sme-centre.massey.ac.nz/

Despite an increase in the amount of research on the programmes that governments around the world use to guide firm development, develop managerial capability and guide firms into undertaking practices that will result in improved performance, there is no agreement within the research community on an appropriate way of conceptualising the task of ‘business development’ or specific developmental programmes. Instead, there is a plethora of frameworks that categorise the programmes either in terms of the service they deliver (e.g. ‘hard’ or ‘soft’ programmes), the target group (e.g. women, ethnic groups, older or younger people), or by the outcome they wish to achieve (e.g. the development of export capability).

While useful from an operational perspective, i.e. from the perspective of a policymaker faced with the task of allocating scarce resources, these approaches do little to assist serious researchers who are faced with the task of evaluating the effectiveness of individual programmes. Nor do these basic categorisations address a critical aspect of development that is especially evident in small firms: the difficulty of making a distinction between the individual and the firm. The author of this paper presents a critical review of the available frameworks, and then presents a framework that categorises the clients of development programmes in terms of the firm’s capacity to benefit from the intervention (i.e. is it high or low in terms of ‘potential’) and the need of the individual. This conceptualisation thus combines the need of the individual with the potential for the firm to develop.

The framework contributes to the ongoing debate on the design of effective developmental programmes, by allowing policymakers to focus on the key issues (developmental potential, both at an individual and a firm level) rather than on the individual’s membership of a specific target group.

Perry Barr, Birmingham, B42 2SU

Tel: +44(0)121 331 6640 Fax: +44(0)121 331 5222

E-mail: harry.matlay@uce.ac.uk

Jubilee Campus, Wollaton Road, Nottingham, NG8 1BB

E-mail: paul.westhead@nottingham.ac.uk

During the last decade, new forms of entrepreneurship have emerged from the synergies between Information and Communication Technology (ICT) and changing paradigms of economic transactions. The emergence of e-Commerce has opened new and lucrative markets and considerably altered the economic activities of surviving Small and Medium-Sized Enterprises (SMEs). In some notable cases, a number of traditional local and regional markets were replaced by global e-Markets, based upon fast growing, high technology SMEs that brought producers and consumers into close and cost-efficient e-Proximity. Increased ‘turbulence’ within the international business community has facilitated the evolution of highly innovative organisational forms that are structured dynamically to ensure sustainable competitive advantage in local, national or global markets. In particular, e-Innovation has facilitated the development of e-Entrepreneurship, which consists of groups of geographically distributed individuals (entrepreneurs) who interact through interdependent tasks and are lead by common (entrepreneurial) interests and goals.

This article focuses upon the emergence of e-Entrepreneurship, which increasingly defines the competitive core of successful SMEs in e-Europe. Based upon the results of 36 longitudinal case studies from the European Tourism and Hospitality Industry, it identifies and explores the stages and processes specific to teams of e-Entrepreneurs, from formation to the fulfilment or adjournment of specific tasks and projects. The advantages and disadvantages of e-Entrepreneurship are identified and discussed. Implications for policy-makers are identified and discussed.

150 Broomielaw, Glasgow G2 8LU

Tel: +44(0)141 228 2069

E-mail: andy.mcnab@scotent.co.uk

Paisley PA1 2BE

Tel: +44(0)141 848 3380

E-mail: talb-em0@paisley.ac.uk

The theme of this paper is that there is a need for a radical re-appraisal of the traditional incubator concept. Focusing on the dynamics of the incubator process is more likely to reveal incubator value add and also the nature of the market failures being addressed. Evidence from Scottish Enterprise’s High Growth Start-up Unit is presented which suggests that there is value in looking for the incubator process within the new start rather than attempting to assess the merits of a physical location or geographic area.

This paper contends that there is compelling evidence to support the concept of ‘virtual incubators’; a concept which places the development needs of the new business at the center of the incubator process. The incubator is NOT a physical building but the provision of a ‘virtual management team’ from which the new start can draw support.

Crucial is the divide within high growth new starts between the skills set of those with the original business idea and the ability to create a robust management team to run a successful business. It is within the skills set dissonance that the virtual incubator resides, creating a flexible management team that can draw on various professionals as necessary. In this way business specific market failures are identified and addressed.

Evidence of the potential for this approach is presented in a number of case studies of new start high growth businesses that have been successful in securing substantial investment funding. The paper raises controversial policy issues with respect to incubators and looks at the challenges facing new high growth businesses.

The Burroughs, Hendon, Middlesex, NW4 4BT

Tel: +44(0)20 8411 5731

E-mail: m.mcpherson@mdx.ac.uk

Literature suggests, influences that have helped shape 2^nd generation South Asian entrepreneurs of today, and not only those offspring who have grown up in the context of an established family business (Goffee 1996), is due in part to the exposure to an ever-present pro-enterprise ideology. Consequently, such entrepreneurs are better informed and educated; and have at their disposal a wide range of internal and external resources, support and advice that can be mobilised via informal [strong ties] and formal [weak ties] means (Blackburn and Curran 1993 and Rosa 1993). However, Rosa (1993) contends that the extent to which such internal and external resources et cetera is effective is dependent upon whether the offspring is from a family or non-family business background. Therefore, unlike their 1^st generation counterparts whereby entering self-employment was due to the prevailing economic push factors (and pull factors to a lesser extent) and support was from family, friends and co-ethnic community. 2^nd generation South Asian entrepreneurs are starting from a platform different to the one experienced by their parents. Given this, can it be assumed differences in business practices and strategies exist between the various actors?

To address this assumption, an empirical study was undertaken with the aim of comparing the differences in business practices and strategies used by 1^st and 2^nd generation entrepreneurs to mobilise resources. Therefore, to achieve this aim, investigation was conducted within a phenomenological paradigm. 46 semi-structured interviews were carried out with two contrasting ethnic groups, namely, 1^st and 2^nd generation Sikh and Pakistani Muslim entrepreneurs from both family and non-family owned micro – small businesses situated within the Greater London area. In addition, 6 businesses from both ethnic groups were selected to complete the multiple (comparative) case-study stage of the research. The outcome of the study revealed, in comparison to their 1^st generation counterparts, 2^nd generation entrepreneurs display evidence of changes in social and cultural attitude and behaviour towards strategies and methods used to mobilise internal and external resources. This in itself implies differences in the way these particular businesses operate.

Postnet Suite 164, Private Bag X025, Lynwood Ridge, Pretoria 0040, South Africa

Tel: +27 12 841 2696 Fax: +27 12 841 2867

E-mail: bmfeka@godisa.net Web Site: www.godisa.net

Threats and opportunities that come with international liberalisation of trade and post-apartheid relaxation of South African trade barriers have not been thoroughly examined in relation to the plight of South African small businesses. In particular, the increasing infiltrations of foreign direct investment (FDI) through Transnational corporations (TNCs) and their relationship to small businesses. Despite a growing literature on the desirability of FDI through TNCs, there is little evidence of the impact of TNCs in the country, particularly in their relationship with local institutions, with specific focus to small businesses.

The purpose of this research, therefore, was to firstly, explore the existence of a relationship between small businesses and TNCs in terms of small business perceptions and actual learning towards TNCs within the context of a developing country that is, South Africa in KwaZulu-Natal (KZN) province. Secondly, to explore a relationship between KZN small business linkages with TNCs and KZN small business’ international competitiveness. Finally, to explore an integrated view of small business learning perceptions, and actual learning from TNCs with small business international competitiveness.

About six propositions were tested, three on small business perceptions, one on the level of learning from TNCs, one on small business linkage with TNCs and international competitiveness, and one on small business learning from TNCs and international competitiveness. A theoretical perspective adopted is that small businesses that are linked to TNCs learn and are more international competitive than those that are not linked to TNCs.

Pontypridd, Trefforest, CF37 1DL

Tel: +44 1443 654128 Fax: +44 (0) 1443 482380

E-mail: wpjones1@glam.ac.uk Web site: - www.glam.ac.uk

This study examines the causes for student withdrawals experienced on the E-College Wales BA Enterprise programme in South Wales. These key causes are identified through interviews with former students and are contrasted against the existing literature. The study found that successful e-learners were typically female, without Higher Education qualifications, self employed and aged between 31 and 50. Nine prime causes of withdrawal were identified which were categorised as being either extrinsic or intrinsic. Extrinsic factors are barriers to e-learning, which are external to the University such as employment issues and personal problems faced by the learners. Intrinsic factors were identified as internal course related barriers, which could be influenced by the academic, support and technical teams. The research adopted a triangulated approach. Descriptive statistics were utilised to provide a demographic profile of learners and course documentation to identify student profiles. Thereafter, the study used in depth content analysis of student feedback to identify reasons for withdrawal. The authors identified and interviewed 20 withdrawn students from the programme using a semi-structured questionnaire. Thereafter, a focus group of the course team of on-line tutors was undertaken to examine the staff perceptions for individual students’ reasons for withdrawal. The results of the two stages were then compared and contrasted. Key strategies to overcome barriers to Enterprise E-learning are identified as a realistic recruitment policy, effective induction, recognition of accreditation of prior learning and flexible course structure.

Southend, Princes Caroline House, 1 High Street, Southend-on-Sea, Essex SS1 1JE

Tel: +44(0)1702 339888/ 348325 Fax: +44(0)1702 339808

E-mail: jmitra@essex.ac.uk

Most Regional Development Agencies (RDAs) in the United Kingdom (UK) have committed themselves to developing an Enterprise Strategy for their regions. This commitment is mainly in response to the current Labour government’s keenness to see enterprise and entrepreneurship at the centre of any economic development agenda.. In this paper, the author examines the case of the West Midlands region in the UK and the evolution of a culture of entrepreneurship in the region. Focusing particularly on new venture creation and small firm growth, the author refers to various theoretical models drawn from the literature on regional economic and regional innovation systems, and uses secondary data to describe and analyse the trends in entrepreneurship in the region.

Fostering a region’s culture of entrepreneurship entails the use of more than ones set of policies and instruments to manage such heterogeneity. Secondly, a culture of entrepreneurship is supported and sustained by a range of institutions and stakeholders whose roles, functions and tasks generate the framework conditions that apply in the region. Thirdly, the framework conditions are also created by the supply of skills and a knowledge base appropriate for enterprise creation and the realisation of the values of entrepreneurship. Fourthly, it is the mix of the three elements of culture referred to above, which creates a learning environment, critical to the accommodation of change and innovation. Finally, how these elements work with each other in a given space gives a region its unique character.

Using the analytical framework described in the previous paragraph, the author examines recent effort in renewing a culture of entrepreneurship in the region. The paper concludes with some critical policy level observations.

School of Engineering, Lewes Road, Brighton, BN2 4GJ

Tel: +44(0)1273 642307 Fax: + 44(0)1273 642301

E-mail: r.d.morris@brighton.ac.uk

There has been growing top down Government pressure to place entrepreneurship onto the agenda of Higher Education, both at administrative and curriculum levels. There has also been a growth in research into the teaching of the subject. The entrepreneurship module within the University of Brightons MSc in Product Innovation and Development (PID) has however been created from a bottom up, market and student driven need. The PID course has been running for 8 years, and is significantly concerned with the process of engineering innovative new products for commercial concerns. The original concept behind module was to help students and their sponsors protect their innovations. Changing student requirements and changes in the commercial marketplace (significantly the decline of manufacturing) have meant an evolution in both content and delivery of the module towards exploiting their innovations.

This paper outlines the module evolution. This includes content changes, which have evolved to incorporate legal, marketing, financial and key skills training, and changes in delivery which have evolved from a Subject based methodology to Problem Based Learning including the adoption of serviced learning and reward based models. The results of these changes, based on student pass marks, suggest an improvement in student achievement from an average of 50 % in 1999 to 60 % in 2002. Evidence based on benchmarking against course learning obejctives also suggest a high degree of success. The module now forms the model for entrepreneurship training being used within the university to train undergraduates within the Business School, postgraduates within the School of Computing and Mathematical and Information Sciences, and for industrial short course provision.

Llantwit Rd, Treforest, CF37 1 DL

Tel: +44(0)1443 482332 Fax: +44(0)1443 482949;

E-mail: llmorse@glam.ac.uk

Llantwit Rd, Treforest, CF37 1 DL

Tel: +44(0)1443 482658 Fax: +44(0)1443 482949;

E-mail: swilkin1@glam.ac.uk

Llantwit Rd, Treforest, CF37 1 DL

Tel: +44(0)1443 483290 Fax: +44(0)1443 482949

E-mail: bcthomas@glam.ac.uk

The paper considers networking opportunities for small businesses in Wales as a means of assisting knowledge acquisition and management. Through networking, small firms are expected to improve their knowledge management system and enhance future performance. The research investigates networks of ten firms from four economic sectors: manufacturing-engineering, communication-computing, leisure-tourism and construction architecture.

The paper reports on the first stage of the project involving an assessment of the learning needs of the participants and a review of the approaches to human resource development as reflected in the business plan.

The implications of these findings are discussed in relation to how small firms can benefit form becoming involved in learning networks as a means of improving their management capabilities. Examples of small business learning networks are discussed. Additionally, proposals on the need for further research are indicated.

Dr Sarah Drakopoulou-Dodd (Athens Laboratory of Business Administration),

Charles P Skene Centre for Entrepreneurship, Aberdeen Business School

The Robert Gordon University, Kaim House, Garthdee Road, Aberdeen AB10 7QE

Tel: +44(0)1224 263895

E-mail: s.moult@rgu.ac.uk

Edward Wright Building, Dunbar Street, Aberdeen AB24 3QY

Tel: +44(0)1224 273445

E-mail: s.l.jack@abdn.ac.uk

It is now well established in the literature that networks contribute significantly to entrepreneurship, extending the information and asset base for business development. Although the advantages of networks have been identified, less is known about how networks change and develop over time. Yet, recent thinking suggests that to appreciate and understand networks more qualitative and longitudinal work is required which considers the transformation and change processes of networks, how these emerge and develop to support business requirements.

This study reports the findings of a research project that focuses on network change over time. It considers the development of a network, for new entrepreneurs, established by a local enterprise support agency in the North East of Scotland. Through the use of participant observation, interviews and survey methods, data has been collected at intervals over a three year period. The quantitative methods used enable the network to be mapped, providing details about the structural characteristics of the network. Qualitative data has been categorized and analysed using the constant comparison method. This provides in-depth detail about network dynamics and change process involved.

Initial findings show that the network was modified to meet the changing needs of entrepreneurs. The emerging "picture" is that network structure is reshaped to fit the particularities of the environment in which the entrepreneur is operating at a particular point in time. Through the active formation of network ties, gaps in the entrepreneur’s information and asset requirements are bridged. Thus, the network appears to shift and adapt to fit the needs of its participants. In this way we argue that networks are organic structures, responding to the needs of the network members.

2 Sidings Court, White Rose Way, Doncaster, DN4 5NU

Tel: + 44 (0)1302 761222 Fax: + 44 (0)1302 761333

E-mail: martijn@qedconsulting.co.uk Web Site: www.qedconsulting.co.uk

29b Campbell Road, Eastham, London, E6 1NP
Tel: + 44 (0)208 5860387 Fax: + 44 (0)208 5489737
E-mail: billbolton@fsmail.net.

Entrepreneurs are agents of transformation. Their role in achieving competitive advantage and technological change is now well recognised. The basis of this paper is that entrepreneurship is the single most important factor in determining whether a region or community achieves its full potential, both economically and socially.

Entrepreneurs also decide whether successful economies remain successful. When change threatens the status quo decline is inevitable unless entrepreneurs are around to think differently and create new opportunities. These days we seek to solve such problems by regeneration programmes. Money, resources and a great deal of effort are expended but the results are often disappointing and we wonder why. The answer is that we have left out the entrepreneurs. They are the key to making regeneration work.

This paper reviews the process through which entrepreneurial talent can be released to aid economic and social regeneration. It considers the role of the ‘entrepreneur enabler’ – people who can spot and ‘enable’ potential entrepreneurs to start new high-growth businesses. They are often found in institutions that become the source of new enterprises. These new enterprises then start to group to form clusters. Clustering in turn produces visibility which helps create a peer group in which people begin to consider whether they too might be entrepreneurs.

The final outcome is a self-sustaining process that gathers more and more momentum and has a life of its own. It can bring a new confidence to disadvantaged areas and transform static economies.

The most recent example of this process can be seen in South Yorkshire where over the past 2 years QED Consulting has helped Business Link South create over 350 new high-growth businesses, employing over 1000 people and on average projecting 2^nd year turnover levels of around £500k. The birth of the ‘South Yorkshire Phenomenon’.

1414 Fawn Creek, San Antonio, Texas 78248, USA

E-mail: mukhtar.s@netzero.com / s_m_mukhtar@hotmail.com

Ruskin Chambers, Knutsford, Cheshire WA16 6HA

Tel: 01565 634467 Fax: 0870 241 9570

E-mail: jim.redman@fpb.co.uk Web site: www.fpb.co.uk

This paper builds upon the findings and policy recommendations of our previous three papers (Mukhtar and Redman 2000, 2001, and 2002) that examined the gap in UK SME training between training providers and receivers. We raised the issue of the "Small Business Ethos" in relation to learning and training – the distinguishing culture of the entrepreneur and the role of entrepreneurship in establishing a business. We now highlight current policy thinking to form the foundation of this culture at an early stage - the introduction of enterprise (or entrepreneurship) education.

Our previous papers are based on the often much ignored SME owner/managers perspective. This paper, the first from a policy makers’ perspective, reviews the thrust of current macro policies being drafted in the European Commission to close the learning and training gap between policy makers and SMEs.

We focus in particular on the ‘Lisbon Strategy’ - the declaration of the European Council in Lisbon in March 2000 that the European Union must become the most competitive and dynamic knowledge-based economy in the world, capable of sustainable economic growth. The Lisbon Council defined entrepreneurship as one of the ‘new basic skills’ for the knowledge-based economy. It is policies related to the latter that are discussed, as well as their relevance to the UK SME sector and innovative ability, if any, to introduce effective ‘positive’ change to the SME ‘image’. The paper concludes with the policy framework needed for implementing entrepreneurship education at a national level.

Newport, NP20 5XR

Tel: +44(0)1633 432478 Fax: +44(0)1633 432307 E-mail: lyndon.Murphy@newport.ac.uk

University of Glamorgan Business School, Pontypridd CF37 1DL

Tel: +44(0)1443 483290 E-mail: bcthomas@glam.ac.uk

Pontypridd CF37 1DL

Tel: +44(0)1443 483587/3290 E-mail: salhasan@glam.ac.uk

The aim of the research project is to identify the extent to which public policy supports SME innovative activity in Wales. The project explores the issue of public sector intervention to foster innovative activity.

To develop the theme of the regionalist view of innovation propagation it may be stated that traditional innovation policy has been finance orientated. Further, there may be an issue regarding a suitable ‘seedbed’ environment/’fertile ground to act as an enabler for the efficient and effective implementation of innovation policy. Thus, begging an answer to the question, which comes first, an appropriate innovative culture in which to embed policy, or an innovative policy to foster and develop an appropriate culture?

The research project will set out to circumscribe the innovation environment as engendered by public policy. It will draw upon secondary data sources and interviews with key policy makers. Secondary data sources will include existing literature in the area, which will consist of both published material and 'grey' literature (including reports from the European Commission, universities and consultants). To determine policy capacity to cultivate innovative activity and to ameliorate the exploration of the relationship between innovation policy and innovative activity, face-to-face interviews will be carried out with both national and regional policy makers, and policy implementers. The interviews will provide an opportunity to explore the construction and implementation of current innovation policy initiatives as well as considering future policy developments. The project outcomes will facilitate a greater understanding of the supporting rationale for the design and implementation of an innovation policy. The rationale arguably should have some if not all its roots at a micro level. The principle motivation for an innovation policy is to be explored at both a micro and macro level. Thus, the project outcomes will be sourced partially from both micro and macro policy stakeholders. The research will be of academic and practical significance, contributing to the body of understanding of the role of innovation policy to support SME innovative activity.

2nd Floor, Keynes House, Trumpington Street, Cambridge CB2 1QA

Tel: +44(0)1223 766900 Fax: +44(0)1223 766922

E-mail: y.myint@jims.cam.ac.uk Web site: www.entrepreneurs.jims.cam.ac.uk

This paper explores the significance of individuals (investors, academics and serial entrepreneurs), and their particular assets of experience and established networks, as the key influence to the growth process of the high technology cluster in Cambridge. Since the cluster started to thrive, one of its great strengths has been its local "networking". One of the key factors that is most difficult to quantify is the importance of networks, both social and professional, that bind the Cambridge companies together in a close community. There is substantial evidence that serial entrepreneurs may develop a high level of social capital and play an important role in shaping the formation of clusters in which they operate. Their multiple roles in venture creation- identifying new business opportunities, mentoring, connecting new entrepreneurs with venture capitalists or angels, recruiting senior management and directors – lower the barriers to entry for new companies within a cluster. These individuals establish links between companies through which information can flow and contribute to the structural and relational social capital of the cluster.

The objectives of the paper are twofold:

· To study the prevalence of interlocking directorships within the Cambridge cluster with a view to identifying key individuals and quantifying the degree of interconnectivity between companies.

· To apply the literature of social capital – structural (through interlocking directors and common investors) and relational aspects (through the association of individuals who have worked together in other companies).

This research is expected to contribute to an understanding of social capital and a means for quantitatively measuring the strength of social networks within the cluster. In addition, the observations in this paper may have policy implications and future research to explore how policy makers might take into account the human aspects of the business formation and success.

Wexford County Enterprise Board, 16/17 Mallin Street, Wexford, Ireland

Tel: + 353-53-22965, Fax: + 353-53-24944

E-mail: mythens@wexfordceb.ie

Waterford, Ireland

Tel: + 353-51-302675, Fax: + 353-51-302688

E-mail: wogorman@wit.ie

In many countries around the world including Ireland assistance towards the development of rural SMEs has not been well integrated. There are many enterprise support agencies in Ireland, and while some focus on micro-enterprise and others on SMEs and large businesses, an integrated policy supporting the development of enterprise across all sectors and geographical locations does not exist. It is also the case that entrepreneurship education, research and support in 3^rd level learning organisations are disjointed and disparate. Because of this there is an under utilisation of the potential support available from state agencies and 3^rd level learning organisations.

This paper explores a novel integrative enterprise support model that was created and developed by the interaction between seven state enterprise support agencies, two 3^rd level education institutes, twenty SMEs in rural areas, and fifteen private sector consultants/business advisors. The model is based on action learning and learning sets whereby the companies are grouped by geographical location and through regular meetings and contact with the relevant bodies learn the process of self-support and development. The integrated model, the "joining of the dots", and cooperation between state agencies, education centres, and private sector organisations is creating a seamless approach to enterprise development in rural areas that will enhance the economic well being and sustainability of SMEs themselves and the region as a whole.

This working paper is a case study outlining the development of the integrative model, its implementation, and assessment of the positive impact this model has had on the development of the SMEs directly involved in the programme. Each of the SMEs involved has improved their business processes, and enhanced their foundation for sustainable growth and development.

Bannerghatta Road, Banagalore 560 076, India

Tel: +91(0)80-6993021 Fax: +91(0)80-6584050

E-mail: vn@IIMB.ERNET.IN

Oxford Brookes University, Wheatley, Oxford OX33 1BX

Tel: +44(0)1865 485958 Fax: +44(0)1865 485705

E-mail: rberesford@brookes.ac.uk

It has been established by various studies that there is a significant relationship between the level of entrepreneurship and the extent of economic activity in a country. Consequently, it is no surprise that many countries articulate special policies towards promotion of entrepreneurship activity. Two such countries, which place major emphasis on the development of SMEs, are India and United Kingdom

In a large country like India, the policies for the development of entrepreneurship are formulated at the national as well as the regional levels. While the national level policies are broad in nature, it is the state level policies that affect the entrepreneurs at the ground level. State incentives are usually in the form of fiscal or infrastructural in nature. The fiscal incentives include subsidies, loans at zero or subsidized interest rates etc. The Infrastructural incentives include provision of land and buildings at below the market rates, transport facilities and even location advantages by concentrating different industrial units in a given area. While different states offer different incentive structures, the success rates also vary.

Understanding the effectiveness of these state level policies is important to formulate such policies which are capable of attracting entrepreneurs to a particular location. This paper analyses the data collected from about 300 entrepreneurs spread across 6 states in India. The data is collected on expectation levels of the entrepreneurs as well as the level of their actual experience with respect to various factors that influence the location decisions. The data is analysed to identify the effectiveness of various factors in attracting the entrepreneurs to specific locations. These factors are then compared with similar factors that influence the location decisions in UK. The differences as well as the similarities in the factors are analysed to gain insights into the formulation of the government policies and their effectiveness.

University of Paisley, Maxwell House, Crichton University Campus, Dumfries DG1 4QU

Tel: +44(0)1387 702076 Fax: +44(0)1387 702077

E-mail: carole.naylor@paisley.ac.uk

Effective communication between an organisation and it’s stakeholders is essential to its success. Within SMEs that need to communicate with a national or global audience in order to market their product/service marketing communications can utilise a disproportionately large percentage of an organisation’s resources or be largely ignored due to lack of capital, technology or expertise. Communications administered via the Net (CAN) have the potential to significantly change the way that SMEs, in this category, communicate.

In terms of Information and Communications Technology (ITC), there is a focus on a blanket approach to getting businesses online. Government initiatives drive SMEs up the DTI Adoption Ladder without recognising individual factors that may influence the pace and or breadth of diffusion. Research tends to concentrate on the whole business and is usually undertaken from a technology led viewpoint, with very little being carried out specifically on communication.

In an attempt to understand why the integration of ICT has not always delivered, this research will investigate the use of CAN as a mass marketing communications tool in rural SMEs in the tourism industry in Dumfries and Galloway.

This working paper will look at the research questions that will be established as well as the research tradition, methodology and analysis techniques selected for the proposed research.

There are potentially several academic outcomes of the research. These include: a new definition for communications technologies and a communications model that relates specifically to SMEs with mass communication needs, a further theoretical foundation for Internet technology diffusion and a diagnostic tool used to measure value of the Internet for marketing communications.

PO Box 167, Village Market, Nairobi, Kenya

Tel: +254 2 4445361

E-mail: bitangecis@iconnect.co.ke

In Kibera slums in Nairobi, former prostitutes and AIDs victims are huddled together making Christmas Cards, others are packing finished products for export to Australia, Britain and the US through a church network. They each record their daily output. Pay for the 15 women at the centre is guaranteed up to four quality cards (the arrangement guarantees each worker about $65 a month, which is approximately 20% over and above the minimum wage in Kenya) each day.

At up-market, Riverside Drive, Becky a native of the USA is making final arrangements to ship to USA an assortment of goods produced by women from disadvantaged backgrounds. The eighteen women in the compound have different tasks having undergone a three month training.

What do these ground-breaking programs have in common? They are part of the social enterprise initiatives to alleviate poverty and other social problems. For centuries, social programmes are known to be not-for-profit. Theoretically, implying that they only make sense as relief organizations. Several key issues arise from this hypothesis including: How shall we assess a successful social enterprises? At what point is a social enterprise successful?

Given the nature of this study, the initial phase was essentially exploratory and therefore, a qualitative, inductive approach based upon open-ended interviews is most appropriate (Fontana and Frey, 2000). The unstructured approach is advantageous Wilson, because it: highlights areas of concern to the interviewee; captures attitudinal and perceptual data (Wilson, 1996).

Social Enterprises are indeed becoming vehicles of economic growth especially in urban distressed neighbourhoods as well as poor rural areas. Supporting these enterprises, may lead to faster development especially in the developing countries.

The Enterprise Centre, Coventry University Technology Park, Puma Way, Coventry, CV1 2TT

Tel: +44 2476 236 111 Fax: +44 2476 236 388

E-mail: marla@wbda.co.uk Website: www.wbda.co.uk

The Women’s Business Development Agency (WBDA) specializes in supporting socially and economically excluded women into business ownership. Our paper will discuss the philosophy underpinning our ‘patience model’ for enterprise support, showing why we believe that needs-led, gender-specific programmes are vital to the successful business mentoring of economically disadvantaged or under-represented groups. We will describe the elements and content of our ground breaking ‘Women’s Empowerment Programme’ and illustrate our methodology with case studies. Developing successful local partnerships, assertive outreach work and confidence building are particularly important to our success and we shall discuss these in detail. The challenges facing our various client groups, rural isolation, religious restrictions or disability, for example, require our training delivery to be extremely flexible. We shall show how we have adapted our support to address widely differing needs. As a result of our success we have been funded to adapt our methods for the support of other client groups. These include male refugees who experience difficulty in integrating themselves into the economic life of the country. We shall demonstrate how we have developed our methodology to support this group. As well as supporting disadvantaged groups we also help women in areas of enterprise where they are particularly under-represented. We are developing two new initiatives, neither of which currently has any parallel within the United Kingdom. ‘High-Growth/High-Inclusion and Science Based Enterprise’: In partnership with local Universities we are developing a ‘women only’ intensive training and mentoring programme aimed at encouraging and supporting women entrepreneurs into potential high-growth business start-up. We will discuss why this project is needed and show how we are adapting our methodology to this group. The British Government is committed to encouraging women into SET (Science, Engineering and Technology)-based employment. There are, however, few, if any, initiatives dedicated to the support of SET-based entrepreneurship for women. Together with Coventry University we are creating a centre of excellence for the support of women into SET business ownership. In Conclusion: Finally we shall address the challenges of integrating specialist methods into mainstream enterprise support and the barriers that major funding streams (e.g. the European Social Fund) can present to our work and those of agencies like ours.

Longbridge Road, Dagenham, Essex RM8 2AS

Tel: +44(0)20 8223 7657 - Fax: +44(0)20 8223 2899

E-mail: s.nwankwo@uel.ac.uk

35 Marylebone Road, London NW1 5LS,

Tel: +44(0)20 7911 5000 (ext 3295)

E-mail: F.Ekwulugo@westminster.ac.uk

Longbridge Road Dagenham, Essex, RM8 2AS

Tel: +44(0)20 8223 2205

E-mail: n.o.madichie@uel.ac.uk

Although there is a rich and growing body of literature on ethnic entrepreneurship in Britain, the subject is very frequently treated without regard to the diversity that exists among British ethnic minority groups and their approaches to entrepreneurship. This obvious lacuna underpins the apparent lack of appreciation of the spatial and temporal contexts of entrepreneurship among many minority groups, especially those that are quickly altering the dynamics of entrepreneurialism in Britain. This paper focuses on African entrepreneurship in London - a more nascent entrepreneurial phenomenon that has hitherto attracted very limited research interests. Paradoxically, recent evidence indicates that African-owned small businesses are the most rapidly mutating phenomenon in London. However, the general tendency among researchers to treat ethnic entrepreneurship in Britain monolithically has meant that very little is known about how African-owned small businesses are evolving, their growth trajectories, the depth of ethnic and non ethnic-based networks that they create or are drawn into and, very importantly, how they are "managing to survive". As a result, recent efforts at researching African entrepreneurship using normative approaches have been fuzzy and fraught with complications. Accordingly, this paper, drawing from the experience gained in carrying out a commissioned project, discusses the major difficulties in reaching and engaging African entrepreneurs in research-related endeavours and suggests methodological approaches that may be usefully applied in order to improve the process of collecting data (and the quality of data itself) from this population sub-group. The paper makes recommendations for improving the management of research processes involving African entrepreneurs. Although some of the recommendations may readily apply to the wider ethnic minority entrepreneurial population but nevertheless offers refreshing insights.

174 Chantry Crescent. Birmingham UK. B73 7PE

Tel: +44(0)121 360 3018 Fax: +44(0)121 628 8150

E-mail: d.palmer@aegisassociates.com Website: www.aegisassociates.com

With small businesses being such a substantial part of the UK economy, government and business organisations have attempted to encourage prospective entrepreneurs to avail themselves of the business advice available. Business advisors will help businesses develop realistic start up plans, thereby limiting the start-up of non-sustainable businesses. They also improve the prospects of existing businesses, by providing objective support. Statistics indicate that where businesses obtain advice, their longevity as an operating company increases.

Research has shown, however, that many start-ups still do not access business support and those that do are often dissatisfied with the support provided.

This paper investigates the way that business advisors and business support organisations interact with their clients. More specifically it considers the types of skills required by business advisers and the methods of delivery, particularly in the social enterprise sector.

Consideration is given to the pre-defined delivery model often associated with government-funded support in terms of the methodology of delivery to clients. It challenges the conventional notion that advice should be given to, and for the benefit of the business alone. It posits that the individuals are the true business, rather than the entity. The business community is not homogeneous and by addressing individual personal client needs and delivering support in a way appropriate to the client, the adviser will be accessed more often and to the greater benefit to the business.

This work suggests that this approach is also more likely to impact positively on non-mainstream organisations such as social firms, and where ‘under-represented’ groups, such as women’s and BME businesses are seeking business support.

Armstrong Building, University of Newcastle upon Tyne, Newcastle upon Tyne, NE1 7RU

Tel: +44(0)191 222 7728 Fax: +44(0)191 2228131

E-mail: savvas.papagiannidis@ncl.ac.uk Web Site: www.newcastle-ebusiness.com

Armstrong Building, University of Newcastle upon Tyne, Newcastle upon Tyne, NE1 7RU

Tel: +44(0)191 222 7728 Fax: +44(0)191 2228131

E-mail: Joanna.berry@ncl.ac.uk Web Site: www.newcastle-ebusiness.com

Armstrong Building, University of Newcastle upon Tyne, Newcastle upon Tyne, NE1 7RU

Tel: +44(0)191 222 7728 Fax: +44(0)191 2228131

E-mail: feng.li@ncl.ac.uk Web Site: www.newcastle-ebusiness.com

The internet has provided a plethora of opportunities, the majority of them arising from advances in software and networking. As technology evolves in an ever increasing pace the generation of opportunities is bound to follow. This paper will examine how the one of these technologies the 6^th version of the Internet Protocol will affect the internet and the opportunities associated with it, for example Internet Television (IPTv).

It will do so by examining the possible impact and implications of multicasting on television broadcasts. Television and cable broadcasters have looked for ways to exploit the potential of narrowcast for a long time, but conventional narrowcast business models have been hampered by geographic and technology limitations in reaching audiences of sufficient size to be economically viable. The web on the other hand is by design geared up towards one-to-one communications and high levels of interactivity it provides a great platform to broadcast one.

The television industry was selected in order to highlight that emerging internet technologies can significantly affect well-established industries and markets and create new opportunities, when carefully exploited. The paper will discuss the implications for policy makers and regulatory bodies, entrepreneurs wishing to start new channels, established television broadcasters and finally the viewers themselves.

University of Paisley, Paisley Business School, High Street, Paisley, PA1 2BE

Tel: +44(0)141 848 3928 Fax: +44(0)141 848 3395

E-mail: stuart.paul@paisley.ac.uk

The distinctive characteristics and behaviour of serial entrepreneurs has attracted considerable interest in recent years. Recognising that entrepreneurship may not be a "single event action", a number of studies have examined the behaviour of entrepreneurs who have founded more than one business. Business angels who have made a number of investments in entrepreneurial ventures have, however, been subject to little empirical examination. Yet, angels who have accumulated experience through investing in more than one entrepreneurial venture account for a disproportionately high number of the total angel investments. This study examines the characteristics and investing behaviour of experienced and inexperienced angels based in Scotland. A number of hypotheses relating to the business background, motivation, risk assessment and search and investing behaviour of business angels are developed from the established literature. These are then tested against survey results derived from business angels based in Scotland to provide an exploratory analysis of the attitudes and investing behaviour of novice, portfolio and super angels. Presented empirical evidence confirms that, in comparison to inexperienced angels, experienced business angels are more likely to have a finance background, more likely to invest through an investment syndicate and assist on-going business development by helping raise additional infusions of investment funds. Implications for public policy and areas of further study are then discussed.

9 Mappin Street, Sheffield, S1 4DT

¹Tel: +44 (0)114 222 3483, ²Tel: +44 (0)114 222 3450, ³Tel: +44 (0)114 222 3395
Fax: +44 (0)114 222 3348

E-mail(s): ¹ecr03sp@sheffield.ac.uk, ²m.simpson@sheffield.ac.uk, ³s.c.l.koh@sheffield.ac.uk
Web Site: https://www.shef.ac.uk/

Small Business Services (DTI Agency) statistics show that Small and Medium-Sized Enterprises (SMEs) play a very important role in the UK economy (99.8%) and yet, they are slow to adopt e-business as the basis for business communications and transactions. Open markets have created competitive pressures on UK SMEs and consequently generated the need for improved understanding and practices. There is a general concern that the limitation of appropriate technological resources and adequate knowledge may inhibit SMEs operational efficiency and innovation and limit the competitive advantage that e-business could bring to their businesses.

This paper aims at a better understanding of e-business and its role in SMEs. Building on assertions that traditional business strategies have to be changed in order to facilitate an adoption, implementation and use of e-business technology, this paper examines the transition of SMEs from an "old" traditional business strategy to a new "e" business strategy. Two case studies of the potential of firm capabilities to implement e-business are discussed. Some examples of e-business models are analysed as a potential for generating competitive advantage by using e-business applications. Because of the economic importance of SMEs in the UK this paper also reviewed the context of government expectations and its current involvement.

This research identifies areas of interest, problems, gaps and e-models related to the current research on SMEs. The paper concludes that the literature and emerging research reveal that e-business is likely to play an important role in SMEs in the future. However, the authors believe that further understanding of e-business in SMEs is urgently needed. This would benefit SMEs in the long term and it may help them create a competitive advantage that will transform the traditional business environment and impact on how businesses perform.

Primorska 42, P.P. 97, Ika, 51410 Opatija, Hrvatska

Tel: +385 5129 4685 or +385 9153 24419 Fax: +385 5129 2945

E-mail:Ines.Milohnic@hika.hr

The paper analyses the individual characteristics of Croatian managers on the basis of comprehensive interviews with 99 small managers in hospitality enterprises.

Management as the organisational bearer of the mentioned companies is analysed within the context of new surroundings, especially the upcoming demands in conditions of economic openness and competition.

Demand put in front of the manager is its ability to administer changes and establish such strategies wich would enable innovations' flow.

The research encompasses three groups of manager characteristics: background characteristics (gender, age, education, manager experence, tradition), the second is motivation for setting up an own business and personal characteristics, and the third is perceptions of work and problems they face.

The research shows that the typical small manager in Croatia is male, whit a secondary school education, aged between 31 and 50, with no manager experience, running a company of up to five employees.

The principal motive for initiating his own business is the desire for financial achievement and desire for change, which confirms the results of certain investigations carried out in the world.

Basic aim of this paper is to focus attention and interests on relevant aspects of small - family
business development within hotel management activity in Croatia.

Department of Management & Enterprise Development, Private Box 756

Wellington, New Zealand

Tel: +64 4 801 2794 ext 6815 Fax: +64 4 802 0290

E-mail: m.perry@massey.ac.nz Web Site: www.massey.ac.nz

Cluster policies have been adopted around the world despite the difficulty in agreeing an understanding of how clusters should be identified. Most discussions of cluster policy envisage a wide range of policy interventions implemented at a variety of spatial scales. This paper distinguishes a ‘mode of inquiry’ perspective on clusters from a view of clusters as a specific entity. This distinction supports a diversity of approaches to designing cluster interventions but three further considerations indicate limitations to their application: (i) the inability to replicate exemplar clusters; (ii) industry structure constraints on clusters; (iii) distributional impacts of clusters. These constraints are reflected in New Zealand’s public agency experience gained from promoting small business clusters since the late 1990s. This intervention has envisaged clusters as membership associations of various size pursuing projects of collective interest. Eligibility has not been based on any prior cluster mapping exercise or strict guidelines regarding the selection and scope of activity. This has allowed groups of variable significance to gain recognition as clusters. A review of 25 cluster initiatives identifies six ways that the projects question widespread opportunity to benefit from encouraging localized business collaboration: (i) motivations for joining a cluster; (ii) conditions on cooperation; (iii) the need to go national; (iv) facilitator dependence; (v) need for a leader; (vi) missing clusters. It is concluded that programmes implemented without precise understanding of how industry and market conditions affect the scope for collaboration need guidance on where support should be concentrated. Without that guidance opportunity to benefit from cluster promotion is limited.

Gußhausstraße 8, A- 1040 Vienna, Austria

Tel: (+43) 01/505 97 61 Fax: (+43)503 46 60

E-mail: office(6kmuforschuna.ac.at Website: www.kmuforschuna.ac.at

Observatory of European SMEs

This presentation incorporates a series of reports submitted to the European Commission DG Enterprise by KPMG, ENSR, Intomart , with coverage of EU-19 (since survey 2003 EU-25)

8th Observatory Report, 2003 : SMEs and Access to Finance co-ordinated by the Austrian Institute for SME Research

Access to Finance:

· …refers to equity and debt finance

· …is a major business constraint for SMEs

· . . is influenced by various factors :

- legal, political and economic framework

- financial system, banking sector

· lending behaviour in the country

· equity structure of the company

· size, sector, age, profitability of the company

- payment behaviour of the clients

- availability of financial support services

Economic Framework:

· Economic Climate influences

- cost of finance (interest linked to inflation)

- availability of finance

· Recent weak economic cycle leads to

- slow-down in bank lending

- lower credit costs for SMEs

Legal Framework:

· Basel II

- facilitation of SMEs’ acces to finance

· European legislation, e.g.

- Cross-border payments in Euro

- Late payment Directive

· National Regulations

Saimaankatu 11, 15140 Lahti, Finland.

Tel: + 358 3 876 9110 Fax: + 358 3 876 9133

E-mail: timo.pihkala@lut.fi, tuija.oikarinen@lut.fi

The purpose of this paper is to study the prerequisites of knowledge management and learning within a factory. The study seeks to entail the experiences of organisation at all the hierarchical levels, including the top management as well as the shop floor employees.

Knowledge in a firm manifests itself primarily in the firm’s competencies and capabilities. In organizations, it often becomes embedded not only in documents or repositories but even more so in organizational routines, processes, practices and norms. To develop the knowledge and thus, the routines of the company, one should be able to change the way the organisation behaves and thinks of itself. In complex business environment, the skills and even the motivation of the personnel are important strategic aids in the realization of the SME’s objectives. To derive the maximum benefit from an organization’s core competences, it is extremely important not only to recognize the expertise and skills of employees but also to pay attention to the underlying motives and qualities of the employees.

The case company represents a typical process production factory, with constant production and five shifts. The company made a turnover of about 50 MEUR in 2003 and it employs 130 persons. The company estimates that some 40-50% of the employees will retire within the next 5 years. The challenge is to secure the knowledge and competence within the company and build up readiness to capture new information required to stay in the phase of external changes.

The study presented in this paper is a part of a two-year action based research and development project in the company. The data in this paper is based on 10 interviews. The purpose of the interviews was to mirror the competence development and learning opportunities at work through the eyes of interviewed individuals.

The results are highlighted as preliminary findings. Two main themes in the study are the experienced pressures for learning and the needs for multiple skills. The paper concludes with a discussion on the challenges that the organizational characteristics present in the company set for the management of the company and for the management of knowledge especially. As a learning organization, the people carry out their work processes through flows of information. In this sense the ability to communicate horizontally in the most flexible way is the best way to enhance the effectiveness of the company.

8 Yarm Road, Stockton on Tees, TS18 3NA

Tel: +44(0)1642 610610 Fax: +44(0)1642 610611

E-mail: info@inbiz.co.uk

There are 4.9 million people claiming a key state benefit [13.9% of people of working age]. Only 830,000 are registered as unemployed and so receive Job Seekers Allowance. Other groups include the disabled, people receiving Incapacity Benefit, Lone Parents and Refugees. There are a further 3 million economically inactive people of working age.

Since it started to trade, InBiz has helped more than 10,000 people leave the benefit system to start a business. 5,000 clients have been successful through InBiz’s Job Centre Plus [JCP] contracts that started in 2001. It operates in rural areas such as Lincoln, Suffolk and Hampshire. Its clients come from all backgrounds from the professionally qualified to people who dropped out of education early.

70% of clients become positive outcomes and leave the benefit system. Independent research shows that at the 2 year point more than 80% have not returned to the benefit system. 14% of these new businesses start to employ people in their first year of trading.

The presentation will give an insight into:

· How InBiz tailors its support to individuals

· How it works with partners to develop innovative ways to reaching and supporting disadvantaged people into business

· How the company promotes an entrepreneurial culture and increases awareness of enterprise.

University of Derby, Kedleston Rd., Derby, DE22 1GB, United Kingdom

Tel: +44(0)1332 591400 Fax: +44(0)1332 622741

E-mail: d.rae@derby.ac.uk

Entrepreneurial learning has emerged as an important area of enquiry in relation to both the academic study of entrepreneurship and the practical development of new entrepreneurs, yet is not a well understood area. This paper is based on doctoral research into entrepreneurial learning and explores these two questions:

1. How do people learn to work in entrepreneurial ways: are there significant processes and experiences in their learning, and how do these relate to existing learning theories?

2. Can a useful framework to understand entrepreneurial learning be developed and applied both in entrepreneurial practice and conceptually by educators?

The paper develops a new understanding of entrepreneurial learning through in-depth analysis of the experiences of entrepreneurs based on a social learning perspective. A brief critical review of the theoretical literature in the areas of entrepreneurship and learning is provided, and discourse analysis is used to interpret entrepreneurs’ life story narratives of their learning experiences. A conceptual framework of entrepreneurial learning is proposed as a triadic model, including three major themes of personal and social emergence, contextual learning and the negotiated enterprise, and a group of 11 related sub-themes.

Three case studies of enterprises in the creative industries have been developed and extracts are used to support the conceptual model, demonstrating connections between the emergence of entrepreneurial identity, learning as a social process, opportunity recognition, and venture formation as a negotiated activity.

The applications of the model in entrepreneurship education, work based learning and in practice, including different industry sectors and cultural environments, are proposed.

Tel: 07799-535654

E-mail: peterramsden@onetel.net.uk

St Mary’s House, ^c/_o Moorfoot, Sheffield S1 4PQ

Tel: +44 (0)114-279-4448 Fax: +44 (0)114-279-4477

E-mail: George.Bramley@sbs.gsi.gov.uk

The Phoenix Development Fund (PDF) was launch in 2000 to encourage innovative ideas to promote and support enterprise in disadvantaged areas and in groups under-represented in terms of business ownership. Its purpose was to encourage experimentation, the evaluation of new idea and the identification and spread of best practice in an area which there was very little knowledge on what does and does not work. The Fund supported in total 96 projects over the period to March 2004. To support the aims of the Fund an evaluation approach described by Clemisky as ‘Knowledge Perspective’ was adopted to ensure that key lessons for both policy and practitioner could be distilled. The evaluation forms part of a strategic suite of studies commissioned by the SBS on different approaches being tested by other elements of the Phoenix Fund (City Growth Strategies, Community Development Finance Initiatives and the Development for Rural Renewal). The evaluation completed in September 2004 and draws its conclusions on a rich combination of data including: 20 in depth cases, quarterly monitoring returns, surveys of the all projects and a client survey (n=800). This paper draws on this data to describe the type of activities funded and clients reached by the Fund. It then presents an analysis of the relative effectiveness of different approaches, how projects redefined themselves in praxis and the lessons learnt with regards to working with specific groups and communities. The paper finally examines different alternates in terms of mainstream and differentiated provision.

PO Box 51, Toorak 3142, Victoria, Australia

Tel: +61 3 9827 7997 Fax: +61 3 9827 7571

E-mail: jean@jeanroberts.com.au Web site: www.jeanroberts.com.au

A ‘sole operator’ is, in the true sense of the word, a one-person business. This paper offers a proven equation "sole operator + sole operation + operational context = entrepreneurial initiative", based on the author’s experience through twenty years as an entrepreneurial sole operator.

A ‘sole operator’ is the person in the micro business, and this person is the starting point. Next, the person must determine the business structure, methods, systems and processes that will enable her/him to operate effectively and efficiently – and successfully. Finally, the person must know and understand their operational context or business environment. These three components can be categorised as (1) person, (2) task and (3) environment, and they are the three basic components of entrepreneurial initiative. Place them at the 3 corners of an equilateral triangle, and you immediately appreciate their independence and inter-dependence. Finally, place the words ‘entrepreneurial initiative’ in the centre of the triangle to fully appreciate the equation.

This paper firstly explores the ‘person’ factor in a micro business, and compares the respective contribution of practical experience, formal study, observation, action-research and evaluation in entrepreneurial initiative. This is followed by an exploration of the ‘task’ factor, comparing the respective role of formal and informal structures, methods, systems and processes; and finally an exploration of the ‘environment’ factor as an introduction to pro-active, re-active and crisis styles of entrepreneurial initiative.

Finally, a checklist is offered to guide entrepreneurial initiative as a sole operator.

Aytoun Building, Aytoun Street, Manchester, M1 3GH

Tel: +44(0)161 247 6010

E-mail: j.rouse@mmu.ac.uk

Aytoun Building, Aytoun Street, Manchester, M1 3GH

Tel: +44(0)161 247 3956

E-mail: k.boles@mmu.ac.uk

New Entrepreneur Scholarships (NES) is a government-funded programme that provides support to people from disadvantaged areas and backgrounds to start a new business. This programme has been championed by the Chancellor of the Exchequer as part of his regional regeneration and social inclusion agendas Since 2001, NES has supported nearly 3,000 ‘scholars’. Funded by the Learning and Skills Council (LSC), New Entrepreneur Scholarships will be made available until at least the end of 1997.

This paper compares the policy and practice of NES with three of the seven priorities in the UK’s 2004 ‘Government Action Plan for Small Business’. Each of the three themes - ‘building an enterprise culture’, ‘developing a more dynamic start-up market’ and ‘encouraging more enterprise in disadvantaged communities and under-represented groups’ – is critically analysed. The paper then considers how far the NES programme is delivering the actions associated with each priority. Evidence about NES is drawn from the programme website, analysis of demographic data about NES participants and from one author’s experience of acting as a regional co-ordinator to the programme. The paper concludes by outlining key challenges for small business policy and NES and by identifying outstanding research questions about the effectiveness of enterprise programmes, as they relate to the priorities in the ‘Government Action Plan for Small Business’.

______________________________________________________________________________________________________

Aytoun Building, Aytoun Street, Manchester, M1 3GH

Tel: +44(0)161 247 6010

E-mail: j.rouse@mmu.ac.uk

Kingston Hill, Kingston Upon Thames, Surrey, KT1 7LB

Tel: +44(0)208 547 2000

E-mail: j.kitching@kingston.ac.uk

This paper draws on a longitudinal study of a youth enterprise programme to consider how small business ownership is narrated as a means of combining business trading and childcare during business planning, and how these plans work out in practice. Participants’ experiences varied by gender, with mothers and fathers organising trading and childcare in different ways, although both relied primarily on informal care. The strategies adopted by women collapsed soon after business launch and this led, either, to trading and caring for children simultaneously, which could expose children to harm, or to exclusion from small enterprise. Fathers sustained inclusion in small enterprise for longer than mothers, but their dependence on childcare support from their partners relied on fulfilling the ‘masculine’ role of creating income for the household, which was often not achieved. Thus, the ‘childcare barrier’ was significant for both genders, although it had been rendered invisible during business planning. This invisibility is explained in terms of the structure of business plans and the behaviour of the youth enterprise programme. The invisibility of the childcare barrier sustained the discourse that inclusion in small enterprise is possible for working-class parents without providing additional resources to help manage childcare, but this discourse was found to be false.

Policymakers appear to be recognising the ‘childcare barrier’ as the Strategic Framework for Women’s Enterprise makes clear. However, further initiatives are required if enterprise programmes targeting disadvantaged groups are to succeed in sustaining inclusion in small enterprise. Women, in particular, need long-term economic support to help pay for childcare and advice on how to make part-time trading viable. Developing these initiatives is vital if enterprise policy is to contribute to the ‘social inclusion’ targets of alleviating child poverty by helping mothers gain inclusion in paid work and improving the care received by ‘disadvantaged’ children.

500 Glenridge Avenue, St Catharines, Ontario, Canada, 2LS 3A1

Tel: +1 905 688 5550 ext 4267 E-mail: ksaffu@brocku.ca

This study examines the family-business interface of female Ghanaian entrepreneurs by addressing the problems they encounter when they combine business with home and family. The study found time allocation was the biggest problem at the business-family interface. The female owned businesses had a far greater impact on the family than the family had on the business. The time allocation problem was exacerbated by entrepreneur’s family life cycle as well as the venture life cycle. Married female entrepreneurs with children were more likely to report lack of time for the family than those who were married with adult children. Female entrepreneurs who were not married reported the least problems associated with inadequate time for the family. The venture life cycle also had a significant negative effect on the business-family interaction. As the business grew so did the tensions in the family. The fundamental cause of the tensions emanated from "not having adequate time for the family," "not being home for dinner", or "coming home too late or tired for family activities." In spite of the time allocation issues, the effects of the respondents’ entrepreneurial lifestyle on the family, children and spouse were both positive and negative. The most recurring positive effects of the respondents’ entrepreneurial lifestyle included the provision of financial support, role model, and opportunities for the children.

In consonant with the above findings, the preponderance of female entrepreneurs surveyed contended that female entrepreneurs required more assistance than their male counterparts. Training and research implications of the findings are discussed.

Goodwood House, 44-58 May Street, BT1 4NN

Tel: +44 28 9069 8240 Fax: +44 28 9049 0490

E-mail: terri.scott@investni.com

This presentation gives an account of significant progress made in Northern Ireland towards developing an enterprise culture in the region.

Northern Ireland’s Accelerating Entrepreneurship Strategy was launched in 2003 following an extensive consultation with key stakeholders. The Strategy was unashamedly ambitious with the vision to make Northern Ireland ‘and exemplar location to start and grow a business’. The primary aim is to raise the volume and quality of business starts in the region. The Strategy was developed against the Policy Framework of the European Union Green Paper, Department of Industry and Trade White Paper "Opportunity for All", Northern Ireland Programme for Government and Strategic Operating Plans of the Department of Enterprise Trade and Investment and Invest Northern Ireland (the Economic Development Agency for Northern Ireland).

This presentation will deliver an overview of: the main elements of the strategy; the innovative engagement with strategic partners; the evidence of success to date and lessons learned along the way.

The first years results and outputs demonstrate major progress. The partnership approach across a number of government departments has been matched with collaboration with trade organisations, professional bodies and the voluntary and community sector. A large scale communications campaign under the banner of ‘Go For It’ has creatively targeted entrepreneurs and the wider community. The engagement with education and enterprise partners has resulted in early wins, which have brought buy-in from a whole new set of stakeholders.

15 Landsdowne Terrace, Newcastle upon Tyne NE3 1HN

Tel: +44(0)191 213 0788 Fax: +44(0)191 213 0214

E-mail: leighs@woodholmes.co.uk Web site: www.woodholmes.co.uk

University of Durham, Mill Hill Lane, Durham DH1 3LB

Tel: +44(0)191 334 , Fax: +44(0)191 334 5437

E-mails: n.r.grewer@durham.ac.uk / i.e.stone@durham.ac.uk Web site: www.udbs.dur.ac.uk

One of the key Small Business Service strategic themes relates to encouraging enterprise in disadvantaged areas and under-represented groups (SBS, 2004). For one of these groups, the unemployed, enterprise is being promoted as a potential route off benefits (Kearns et al., 2002; The Sunday Times, 22nd February 2004). A recent Government call for evidence highlighted that whilst there are a number of academic and policy studies which have explored the motivations and drivers to considering self-employment and needs and requirements of unemployed people, less is known about how unemployed people manage the process and transition into self-employment and how they interact with Job Centres and the benefits system as part of this process.

The paper is based on insights to emerge from a series of focus groups held across England, sponsored by the Small Business Service, with unemployed individuals with different experiences of unemployment and the transition into self-employment. The paper addresses the key question of how unemployed people manage the transition to self-employment, and in so doing: (i) explores the key characteristics and phases in the process of moving to self-employment; (ii) assesses the nature and experiences of interactions with Job Centres and the benefits system; (iii) examines the types of support used as an entry point and on an ongoing basis in transition process.

The paper identifies that the process is highly iterative, messy and complex with a number of grey areas between unemployment and self-employment. There are a number of identifiable entry points into the system, although unemployed people have predominately ambivalent or negative experiences of the Job Centres and benefits systems, as a source of advice and support. The paper concludes by reflecting upon the implications for unemployed people in managing the transition process and enhancing the effectiveness of the Job Centre and benefits interface.

Newcastle-upon-Tyne

Tel: +44(0)191 2130788 Fax: +44(0)191 213 0214

E-mail: leighs@woodholmes.co.uk

East Road, Cambridge

Tel: +44(0)1223 363271 Fax: +44(0)1223 417700

E-mails: t.mughan@apu.ac.uk /l.lloyd-reason@apu.ac.uk

Increasingly, governments within developed market economies are providing help and support to small and medium enterprises (SMEs) to encourage exporting and internationalisation activity (Ibeh, 2000; Paul-Dana, 2004). In part, this focus on SMEs and internationalisation reflects political concerns with growing balance of payment deficits and the need to encourage indigenous business development activity. In addition, the use of public funds to support the international activities of SMEs reflects a growing body of evidence that suggests a link between exporting activity and improved business performance. Girma et al. (2001), for example, note that ‘on average export firms appear to be larger than non-export firms, both in terms of employment and sales. It also seems that they are more productive but tend to be less capital intensive’ (p. 3).

The paper draws upon the findings from a telephone survey of over 180 SMEs in the East of England to develop a segmentation framework with five segments, determined by the level of experience and expertise in managing different international activities such as importing, exporting, joint ventures and the transfer of intellectual property rights.

A key argument within the paper is that the scope to support and encourage international and global trading activities of SMEs varies between segments, as a result of different motivations and approaches to international trade. Hence the segmentation framework could be used by policy markers as a way of targeting resources to those businesses where greatest value added can be achieved. The paper concludes by outlining the implications for policy markers and agencies supporting internationalisation of SMEs, in addition to academics and researchers involved in understanding how SMEs develop an international orientation and business strategy.

9, Mappin Street, Sheffield, S1 4DT

Tel: +44 (0) 114 222 23450 Fax: +44 (0) 114 222 3348

E-mail: m.simpson@sheffield.ac.uk Web Site: http://www.shef.ac.uk/

Interest in successful small businesses continues to grow, but is influenced by the different ways in which small businesses are categorized and the difficulty of defining ‘success’. Previous research has found critical success factors unique to each industry group. For example, in retail, success is positively related to competitive pricing and quality, in manufacturing to competitive pricing and knowledge of competitors and in services to employee relations issues. However, few researchers have consulted owner/managers of small service sector companies about their views on success. This research is instructive in that it used a grounded theory approach to investigate this issue in small service sector businesses. Thus the objectives of this study were to:

• Identify the extent to which the entrepreneurs’/business owners’ perceptions of success compare with previously identified success factors and to consider the emergence of any previously unidentified success factors.

• Identify and describe in full any possible substantive categories that may emerge from the data.

In-depth interviews were carried out with owner-managers of small service sector businesses. Grounded theory links data collection with theory building, narrowing the focus as the research progresses and so can be used to study organizations in terms of the processes of human actions over time. The conclusions of this study were that it is not necessary to have all of the conventional criteria present in order to achieve ‘success’. Internal strengths were perceived to be more critical for success than the external industry structure and competition. Small businesses were found to have unique cultures made up of values initiated by the owner, but firmly embedded within the employees and working environment. Four distinct approaches to ‘success’ were identified, however much of the data remained amorphous illustrating the diversity of approaches.

Manchester Business School, Booth Street West, Manchester, M15 6PB

Tel: +44(0)161 275 6333 Fax: +44(0)161 275 6596

E-mail: bsloan@man.mbs.ac.uk & f.chittenden@mbs.ac.uk

The role of the Schumpeterian entrepreneur (Schumpeter 1951) in the growth of an economy has long been recognised (Bolton 1971 & Siebert 2003). For the past three decades government policy makers have sought to promote economic growth by encouraging entrepreneurial activity amongst the indigenous population. One of the main approaches to achieving this goal adopted by the current government has been the provision of tax incentives for small firms (Bond and Klemm 2003).

Some entrepreneurial activity takes place in the small business sector but distinguishing those firms that wish to grow from the hundreds of thousands of lifestyle firms is difficult. Qualitative studies suggest very few small firms wish to grow for reasons related to the owner’s modest aspirations (Scase and Goffee 1989), whilst quantitative studies place the proportion of new firms that achieve significant growth at 4% (Storey 1994).

The small firm sector is dominated by the self-employed (SBS 2003) and an important classification is the large numbers of ‘own-account self-employed’ (Ajayi-Obe & Parker 2003). Fiscal policies aimed at promoting entrepreneurship could be misdirected in the belief that there was a great deal of entrepreneurial activity in this part of the economy. The major influences on patterns of self-employment have been captured by Meager (1993) and other studies reviewed by Storey (1994).

The objective of this qualitative research of the self-employed is to provide an insight into the motivations for taking up self-employment and the presence (or absence) of entrepreneurial ambitions in the people that choose this career path. Based upon the findings suggestions will then be made on how the entrepreneurial self-employed might be encouraged to undertake additional wealth generating activity. It is important that these policy suggestions should be well targeted so that the unnecessary costs and spill over effects of badly targeted incentives can be avoided.

The Burroughs, Hendon, NW4 4BT

Tel: +44(0)208 411 5337 Fax: +44(0)208 411 6607

E-mails: d.smallbone@mdx.ac.uk; f.lyon@mdx.ac.uk

The aim of this paper is to contribute to current debates in the UK about the role of social enterprise and social entrepreneurship to local economic and social development, addressing both conceptual and methodological issues. Whilst currently attracting considerable attention from policy makers in the UK, there is a lack of clarity and agreement about what constitutes social enterprise. The paper will address this issue by critically reviewing currently used definitions used by different groups and the differing conceptual bases of these positions. This part of the paper will draw on reviews of literature and the results of a series of group discussions with 'expert groups' of social enterprise practitioners carried out in each region and devolved administration. The results show how the current DTI definitions are being interpreted in different ways by different interest groups.

The paper will also include an empirical section in order to demonstrate the nature and extent of the contribution of social enterprises to local development and how this may be assessed. This part of the paper will draw mainly on a study of the contribution and impact of social enterprise to rural economies and communities. Focused on Devon and using a case study-based approach, this study is of wider interest because of the methodology developed to assess a wide range of social and economic impacts that social enterprises are claimed to contribute. As a consequence, the paper seeks to contribute a greater degree of conceptual clarity to current policy debates, as well as some of the practical issues that need to be addressed if the contribution of social enterprise in practice is to be better understood.

Nottingham Business School, Nottingham Trent University,
Burton Street, Nottingham, NG1 4BU

Tel: +44(0)115 8484745

E-mail: David.Smith02@ntu.ac.uk

High technology clusters have attracted much attention from policy-makers and researchers in recent years. However studies of high technology clusters have focussed primarily on the computer, electronics and biotechnology industries. Although aerospace is the archetypal high technology industry, it has attracted relatively little interest. A recent study by the Department of Trade and Industry identified a number of aerospace clusters in the UK. One of the most significant of these high technology clusters was based in the East Midlands region of the UK.

This paper analyses the aerospace cluster in the East Midlands region and shows that it exhibits the characteristics of a ‘hub and spoke’ cluster. The hub comprises a large multinational enterprise in the form of Rolls-Royce, one of the ‘Big Three’ firms that dominate the global aero engine market. The spokes comprise a complex network of small and medium enterprises (SME) that act as suppliers of components and services to the hub firm. The origins of this distinctive industrial structure are analysed by examining the evolution of the aerospace industry in the UK. The paper traces the evolution of the aerospace industry and shows that how this affected the East Midlands and led to the emergence of the present cluster. In particular the paper shows how the pattern of industry evolution brought about an industry structure where SMEs play a significant role.

C&T Building, University of Central Lancashire, Preston, PR1 2HE

Tel: +44(0)1772 892687 Fax: +44(0)1772 894948

E-mail: rasmith@uclan.ac.uk Web Site: - www.clicknw.org.uk

The Click North West Project, part funded by the European Economic Development Fund, was designed to encourage SMEs to adopt e-business practices in order to increase sales and improve profits. Part of the project’s remit was to establish ‘cluster groups’ representing aspects of the sub-regional economy. Thus, working with the Blackpool Economic Development Unit and Support Bureau, the project targeted a number of small hoteliers in Blackpool who needed a small website (up to 5 pages) in order to meet the growing expectation of holiday makers who wanted to book accommodation on-line.

The purpose of this working paper therefore is to examine the barriers of providing assistance to SMEs within this ‘cluster group’. In particular it will chart the project’s experience of providing assistance to this group from identifying suitable companies to providing on-going support and a suitable exit strategy. In addition, the paper will also consider the problem of ‘short-termism’ that often exists particularly with regard to European Funded initiatives of this kind and suggest how this might be overcome. Finally, it will evaluate the benefits of working with a ‘spin-in’ SME in order to ensure effective and efficient project support and guarantee that companies are supported in the medium to long-term.

University of Westminster, 35 Marylebone Road, London. NW1 5LS

Tel: +44 (0)207 911 5000 x3025 Fax: +44(0)207 911 5839

E-mail: stanwoj@wmin.ac.uk Web Site: www.wmin.ac.uk/marylebone/wbs/

Britain is an affluent G7 economy currently experiencing an extended period of economic buoyancy. However, the benefits of this success are not always being evenly distributed. Inequality and social exclusion continue to exist and, in some respects, appear to be on the increase. Initiatives such as the New Entrepreneur Scholarship (NES) programme are part of a government strategy to actually reduce levels of exclusion by providing opportunities targeted particularly at disadvantaged groups in deprived areas.

Social inclusion has complex and multi-dimensional causes and consequences, creating deep and lasting problems for individual families, for the economy, and for society as a whole. It can pass from generation to generation: children’s life chances are strongly affected by their parents’ circumstances, such as their income and the place they live.

The latter part of the twentieth century saw worsening trends in social exclusion and inequality. Some of the main causes of social exclusions got significantly worse, such as unemployment (particularly long term unemployment) and the proportion of children growing up in workless and low income households.

Social exclusion often manifests itself in linked and mutually reinforcing forms where causal links between sources and consequences of exclusion are difficult to trace. The paper therefore addresses three objectives:

a) it examines data collected as part of the NES initiative, adding further analysis and interpretation;

b) it places this data in context. That is, it draws comparisons with relevant data from other sources;

c) it makes proposals for research designed to establish the typical medium-term survivability of NES Scholars and also to make further inroads into our understanding of the dynamics of the interface between deprivations and entrepreneurial opportunity.

209 CBA, P.O. Box 880487, Lincoln, NE 68588-0487, U.S.A.

Tel: +1-402-472-3353 Fax: +1-402-472-5855

E-mail: nittana.s@bu.ac.th

209 CBA, P.O. Box 880487, Lincoln, NE 68588-0487, U.S.A.

Tel: +1-402-472-3353 Fax: +1-402-472-5855

E-mail: tesbora@unlnotes.unl.edu Web Site: www.cba.unl.edu/outreach/ent/

The information technology (IT) revolution has brought about numerous changes affecting almost every aspect of life in the modern world. These changes also have significant effects on the ways people live and work. Modern entrepreneurs and new ventures use information technology and systems to facilitate workflow and growth. This research focuses on the entrepreneurial characteristics and key tasks in successfully establishing IT new ventures. Success is measured in terms of growth rate. Factors linked to successful new venture founders are tested: achievement orientation, locus of control, risk taking propensity, and creativity. In addition, factors linked specifically to IT founders’ behaviours are examined: IT technical skills, IT management skills, and IT networking.

Theoretical literature from various sources is reviewed to design the research framework. Consequently, the quantitative phase is performed through a survey study and the obtained data is analysed through the use of software SPSS v.11. The target population is respondents who are the founders of IT business in the United States. A total of 250 self-administrated questionnaires were mailed to those IT new ventures. Expected findings include key factors considered significant for successful in start-up IT business and successful new venture’s characteristics. Furthermore, the managerial implications that arose from these findings are discussed. This study can contribute to knowledge in the growing body of entrepreneurship involving information technology new venture.

Knowledge Exploitation Fund, Welsh Development Agency, Unit 7 Ffordd Richard Davies,
St Asaph Business Park, St Asaph, LL17 0LJ

Tel: +44 (0)1745 586183 Fax: +44 (0)1745 586259

E-mail: lee.suthard@wda.co.uk Web Site: www.wda.co.uk

The KEF Entrepreneurship scholarship scheme has been in place now for 3 years and is available to individuals who have graduated from either higher or further education within the last three years, and who wish to establish a company. Support is available on the basis of approval of a business plan by the KEF Entrepreneurship Champion within the host education institution, and is subject to final endorsement by the KEF Management Board. Successful applicants receive a wage subsidy for up to 36 weeks, and also qualify for assistance with travel and childcare expenses. 289 scholarships have been awarded up until March 2004. During April 2004 a survey was commission to ascertain the results and progress of these scholarship companies.

The questionnaire consists of some 40 questions designed to obtain information in a number of areas: General information, Business information, Networking, Growth of the business, Training and development, Perceived value of Entrepreneurship Scholarships, Development of the Entrepreneurship Scholarship Scholar, Equal Opportunities.

The final sample was 80.3% or 183 scholars. The survey findings suggest that the Entrepreneurship Scholarship Programme has added approximately £8.3 million to the Welsh economy in terms of gross sales (2003-2004), and accounts for 471 FTE jobs. There are 9.8% with a turnover of more than £101,000. 30.1% of businesses are privately limited companies. These achievements are believed to be at a relatively low cost per job, and low failure rates (8.7%). A large amount of business plan are live, enabling business goals to be surpassed. Similarly, the survey also revealed an increasing number of Scholars trading in markets outside of the UK in the EU area (5.5%) and, with 9.3% of Scholars trading on an international scale.

Overall this Programme is adding real value to the Welsh economy and equally as important, helps people maximise their Entrepreneurial potential.

Newport, NP20 5XR.

Tel: +44(0)1633 432478

E-mail: warren.symonds@newport.ac.uk

Newport, NP20 5XR

Tel: +44(0)1633 432478

E-mail: lyndon.murphy@newport.ac.uk

Industry use of e-business has grown significantly in recent years. However, there are national, regional and sectoral differences in the growth of e-business activity. Indeed, e-environment connectivity rates amongst micro-businesses in Wales are one of the lowest in the UK. A DTI sponsored report in 1999 ‘A Sectoral Benchmarking Study’ discovered that only 48% of companies within Wales made frequent use of external networking applications. The report expressed this as being a rather poor performance in comparison to London where 74% of companies made frequent use of such technology.

The project aims to measure the actual and potential e-business activity in SMEs located in rural Mid Wales. The importance of information and communications technology for the technological development of rural localities has been recognized by regional and local governments alike (Gibbs, 1993; Graham, 1993). The research project hypothesis has a dichotomous focus. Initially, the focus falls upon measuring actual e-business activity amongst SMEs in rural Mid Wales. Connectivity rates are calculated using survey data. In particular, local, national and international business-to-consumer electronic relationships are considered. Also, electronic business-to-business collaboration and strategies are explored. Secondly cynosure is placed upon an investigation into the forecast uptake and application of e-business amongst SMEs. The core means of data collection is a survey of a randomly selected sample of SMEs located in rural Mid Wales. The survey reveals information relating to the evolution of e-business activities. Further, analysis of the survey data plots the development of electronic business-to-consumer and business-to-business activities. Thus, revealing the uptake of the different stages of e-business application across the sample, from using email, having a web site, buying and selling across the Internet, to integrated business-to-business connectivity. Further details regarding e-business will also be analyzed including security concerns, skill requirements, and future predictions of growth. The aim being to discover whether there is an ‘open-armed’ attitude towards e-business amongst SMEs or does an element of skepticism, fear and ignorance prevail.

BMRB, Hadley House, 79-81 Uxbridge Road, Ealing, London, W5 5SU

Tel: +44(0)20 8566 5000 Fax: +44(0)20 8579 9208

E-mails: Firstname.Lastname@bmrb.co.uk Web site: www.bmrb.co.uk

Level 2, St. Mary's House, c/o Moorfoot, Sheffield, S1 4PQ

Tel: +44(0)114 279 4443 Fax: +44(0)114 279 4477

E-mail: Mike.Chadwick@sbs.gsi.gov.uk Web site: www.sbs.gov.uk

The Government Action Plan for Small Business sets out an ambitious agenda for improving provision of government services for small businesses. The plan’s rationale is that by applying a better understanding of businesses’ needs to improve policy making and service delivery, government can promote further small business success.

As part of its ongoing research programme the Small Business Service commissioned BMRB to explore small businesses’ experience of government services. The research provided 18 case studies explaining the channels of information and support used by small businesses, and their experiences and views about contact with government services. Businesses were selected in terms of the nature of their ownership, size, age, type of dealings they had with different parts of government and business sector.

Overall, there was a view that the services provided to small businesses by government had improved considerably over the past few years. Improvements included: a more customer-focussed approach with services tailored to the individual business or business sector; staff who were approachable, knowledgeable, responsive and who kept the customer informed of progress; single points or channels of communication; easier access to information and advice through help lines and web sites; faster response times; one-to-one advice and consultancy; the provision of high quality training (particularly tax and VAT related), and locally based sources of information and advice.

Some challenges for government were also identified in terms of ensuring: that staff are interested, enthusiastic and knowledgeable; that information provision is consistent; that services are increasingly responsive; that all enquiries are routinely followed-up; that services meet business needs; that decision times are speeded up; that compliance costs are minimised and applied flexibly where possible; and that expectations are not raised unrealistically about the availability of finance and grants, for which small businesses often find themselves to be ineligible.

Pontypridd, CF37 1DL

Tel: +44(0)1443 483290 Fax: +44(0)1443 483560

E-mail:bcthomas@glam.ac.uk Web Site: www.glam.ac.uk/bus/Research/ResUnits/WEI/wei

The paper considers the significance of Technium developments for incubation and innovation in Wales by undertaking a policy research study. This has involved five principal stages including: the nature of the policy research, conceptualising the study, an analysis of Technium developments, conclusions and communicating the research to policymakers.

It is without doubt that small businesses are faced with an increasingly knowledge-driven economy and therefore need to continually invest in research and development to remain competitive. The Technium concept aims to provide a world class commercial standing for the development of small businesses. Technium developments are based on a state-of-the-art ‘incubator’ approach with the objective to release public and private sector expertise supported by academic knowledge. The intension is to offer state-of-the-art premises with onsite business and technical support with direct links to academic institutions. ‘Incubatees’ in the Techniums will be able to interact with one another and network through the provision of meeting and on-site reception areas. From the analysis of the Technium developments taking place it has been possible to map these and to compare with the general growth trends of ‘incubators’ in Wales. In relation to this the business support networks have been considered taking into account technology programmes, ‘Know-How’ Wales, the Technology Exploitation Programme, finance for product developments and the protection of intellectual property. The conclusions emphasise the significance of Technium developments for incubation and innovation in Wales which are relevant to the policy making process.

Pontypridd, CF37 1DL

Tel +44 (0)1443 482331

E-mail sthomas2@glam.ac.uk

This paper will critically evaluate the importance of the ‘historic environment’ and small industrial museums in the context of heritage tourism using the Coalfield Landscape of the South Wales Valleys (1850-2003) as a case study analysis. The paper will be focused on the changing patterns of the landscape, both socially, culturally, physically and economically. This will be explored through an analysis of the changing patterns of the landscape from an industrial area to an area that has attempted to use this resource to regenerate through the introduction of the ‘heritage tourism product’. The paper will identify potential possibility for future development within the context of current issues and debates that encompass the industry. The geographical focus of this essay will span North from the city of Cardiff, encompassing the five central and Eastern valleys of the Rhondda, Cynon, Taff, Rhymney and Sirhowy.

The research methodology has involved four stages including (1) a review of the ‘historic environment’ and small industrial museums in the context of heritage tourism in the South Wales Valleys, (2) a general survey of small industrial museums in South Wales in relation to heritage tourism properties in Wales, (3) a case study comparison and analysis of the extent to which business formats are exploited in relation to the historic environment, and (4) a discussion with recommendations to develop a regional policy for business activities for small industrial museums in South Wales. The paper concludes with an overview of how the present heritage tourism industry policy structures in Wales can develop an ‘entrepreneurial philosophy’ for small industrial museums in both the rural and urban setting.

PO Box 147, Liverpool, England, L69 7ZH.

Tel: +44(0)151 795 3642 Fax: +44(0)151 795 3666

E-mail: hsismail@liv.ac.uk; mjtoward@liv.ac.uk Website: www.agilitycentre.com

It is well documented in the business and academic literature that uncertainty in the business environment is becoming widely accepted as normal. Many smaller companies, by the nature of their position in the supply chain, are forced to carry an increasingly disproportionate level of responsibility in supporting the OEM markets. These companies are finding out that what was once a predictable ordering pattern has dramatically changed giving way to intermittent low volume orders at reduced selling prices amongst other factors. A number of paradigms have been developed as a means of driving internal costs down and increasing flexibility. Examples of these paradigms in the manufacturing world are Lean Manufacturing, Mass Customisation and Agile Manufacturing.

The Agility Centre at the University of Liverpool has developed a method of applying Agility based on the operational and strategic needs of a company. Particular focus is to identify vulnerabilities to enable a level of robustness to be built into the internal mechanisms of the business. This approach gears the business to become more responsive in meeting customer demand and ultimately proactive in the identification of future customer needs.

This paper enhances this work by enabling an organisation to follow a structured method in the development and generation of future scenarios. Scenarios are a method of identifying possible futures about behaviour within a business environment in the form of a "storyline".

These scenarios are acted out to test the stability of current strategies and assist in devising and assessing the plan(s) of action that must be taken for each possible future event. The proposed methodology compliments current scenario research and its application by identifying and using the reliability of the business environment data as a means of assessing the likelihood of generated scenarios. The paper describes the scenario generation process as part of an agility strategic framework that concludes with a plan of action that can be incorporated into the current business operational strategies.

Dept of Management 214, Massey University, Palmerston North, New Zealand

Tel: +64 6 350 5799 x2805 Fax: +64 6 350 5661

E-mail: d.m.tweed@massey.ac.nz

E-mail: judym@hrc.co.nz

The extant scholarship on SME longevity is relatively patchy and presents a somewhat inconsistent and confusing picture. In fact, it appears that the main focus of research has been on the failure rates of SMEs with scant attention given to the proportion in such studies that demonstrate enterprise survivability. Failure rate percentages, usually high, are often quoted but appear on closer examination to be based on inadequate methodologies, fuzzy definitions of failure and a lack of ongoing longitudinal work.

This paper reports on a longitudinal study of 1,511 New Zealand SMEs which had been in business for more than a year and their survivability over a 7 year timeframe. These enterprises were first studied in 1997 as part of a randomised nationwide study of SMEs carried out by Massey University. In–depth methodological work in 2004 has established that at least 1,098 enterprises (72.7%) still exist.

These findings stress the need for a re-examination of the validity of the commonly quoted failure statistics for SMEs. Indeed, we argue that the negative connotations of this failure focus, in the absence of a countervailing viewpoint, serve to skew the formation of effective policy for small enterprises. We conclude that there is an urgent need for enterprise longevity and its antecedents to become the focus of research attention in order to redress an imbalance in the literature. The paper also discusses the policy implications of high levels of enterprise survival.

GTI, ISELs, University of Glamorgan Pontypridd, Trefforest, CF37 1DL.

Welsh Enterprise Institute, Business School, University of Glamorgan

Pontypridd, Trefforest, CF37 1DL.

Tel: +44 1443 654128

E-mail: wpjones1@glam.ac.uk Web site: www.glam.ac.uk

Business incubation is a key element of an economic regeneration strategy, increasing the survival prospects of new businesses as they graduate from a supported environment to function as viable businesses contributing to the local economy. Government and European funding in Wales has provided an opportunity for the development of new business incubation facilities linked to education institutions. As sources of funding change, incubators need to develop innovative and entrepreneurial models to survive and prosper, adopting a model more closely aligned to the businesses they support. Supported by the European Union European Research Development Fund and Welsh Development Agency funding, the University of Glamorgan co-funds and manages the GTi Project, a hotdesking business incubation facility. The success of the Project is evident in that in less than three years it has supported over 100 new business start-ups, involving more than 150 people. A new model of funding and operation needs to be negotiated if GTi is to continue operating beyond 2006.

Six case studies of business incubation in the UK and Ireland are evaluated and contrasted and the key components for successful implementation identified. The case studies comprised semi structured interviews with key personnel within each project with a profile of its structure and purpose. Thereafter the authors present a conceptual framework for a new model of education-linked new business incubation for Wales. This includes the recognition of wider partnerships with key stakeholders such as local authorities, regional development agencies, FE Colleges, Universities and private sector organisations. This study can be utilised by Business Incubator policy makers as a guide to effective practice.

School of Management, Highfield campus, Southampton SO17 1BJ

Tel/Fax +44(0)23 8059 8899

E-mail l.warren@soton.ac.uk

The UK government is actively encouraging the transfer of science and technology innovation to the business sector through a range of initiatives (http://www.ost.gov.uk/enterprise/knowledge/sec.htm). In part, this is seen as a ‘third mission’ for Higher Education Institutions (HEIs), alongside teaching and research; HEIs are seen as pivotal in encouraging the growth of new businesses by supporting the start-up and growth of spin-out companies based on innovative ideas developed by students and faculty within the universities. It is recognised that academics face a steep learning curve associated with the process of company development. Although the availability of support services for technology transfer is increasing, the process of entrepreneurial learning is not well understood.

This paper aims to shed light on the spin-out development by focussing on the learning experience of academic inventors involved in the establishment and development of a spin-out company around their research outcomes. The process is framed as one of identity in transition for the academic/inventor, who to different extents is constituted as an entrepreneur through the practice of spin-out development: finding resources, creating management teams and carrying our market-driven research and development. Theoretically, this approach is underpinned by the notion of the Community of Practice (CoP). In carrying out their business activities, inventors engage with the university’s ‘innovation community’, whose members interact with one another, thus acknowledging and legitimising each other as participants. Using the CoP conceptualisation, academics are undergoing a process of ‘becoming’ part of this community, not just ‘encountering’ it – in other words, they are undergoing a transformative social process involving the negotiation (and re-negotiation) of identities.

Four case studies of nascent, or existing technology spin-out companies are presented in this paper. A qualitative, interpretive methodology is used to explore the extent to which the academic inventors ‘became’ entrepreneurs during the spin-out process, focussing particular on the learning processes they underwent as the engaged with the university CoP. The insights generated in the paper contribute to theoretical understandings of the spin-out process. Practically, there is benefit to those involved in supporting and promoting spin-out activity. Ultimately, better understanding may improve the success rates for spin-out companies, through development of better practice.

Jubilee Campus, Wollaton Road, Nottingham, NG8 1BB

E-mail: paul.westhead@nottingham.ac.uk

Perry Barr, Birmingham, B42 2SU

Tel: +44(0)121 331 6640 Fax: +44(0)121 331 5222

E-mail: harry.matlay@uce.ac.uk

Interest in graduate employment and development has grown in importance both in the UK and in other industrially developed countries. Increased socio-economic and political topicality is reflected in Government inspired and supported expansion of national higher education and training sectors. In order to encourage sustainable competitive advantage at macro- and micro-economic levels, consecutive governments in the UK have promoted general and specific support measures and training initiatives aimed at small and medium-sized enterprises (SMEs). This article evaluates the contribution of the Shell Technology Enterprise Programme (STEP) that subsidised the placement of students in SMEs. Participants in this programme were encouraged to broaden their skill base and to develop business related abilities and/or expertise.

The authors investigate whether STEP participants had managed to develop the required skill portfolios that would enable them to gain and maintain full-time employment in SMEs. Responses were gathered from STEP participants as well as from a matched sample of students who were not involved in this or similar programmes (i.e. non-STEP respondents). Preliminary results indicate that STEP students were significantly more likely to report that computer literacy, project management, business sense and practical skills had enabled them to successfully compete in local and national labour markets and gain full-time employment. Implications for policy-makers are identified and discussed.

The Cedar Technology Centre, Atlantic Street, Altrincham, Cheshire, WA14 5DZ

Tel: +44(0)161 929 3333 Fax: +44(0)161 929 3323

E-mail: kate.white@workingtime-solutions.com Web site: www.workingtime-solutions.com

David W. Taylor, Senior Lecturer, Strategy and Entrepreneurship Group

Aytoun Building, Aytoun Street, Manchester, M1 3GH

Tel: +44(0)161 247 3820 Fax: +44(0)161 247 6307

E-mail: d.w.taylor@mmu.ac.uk Web site: www.business.mmu.ac.uk

Small businesses account for 99% of all UK businesses (SBS, 2004a). Little wonder, then, that government has put together the ‘Government Action Plan for Small Business’ for which ‘Building Capability for Small Business Growth’ is a key strategic theme (SBS, 2004b).  With limited resources, a focus on day-to-day business, and very special individuals living by their wits, small businesses need context specific and timely support to keep abreast of developments in industry, and the business world at large, in order to achieve growth and profitability, and to maintain competitiveness (Gibb, 1983; Perren et al., 1999).

This ‘Government Action Plan’ emphasises the importance of Knowledge Transfer Partnerships (KTPs) as a mechanism for improving the competitiveness and wealth creation of the UK by the stimulation of innovation in business through collaborative partnerships between small businesses and knowledge centres such as Universities. These partnerships go some way to answer the critics who argue that Higher Education Institutes (HEI) need to address the specific needs of small business in order to improve intervention in the learning process (O’Hara et al., 1997; Thorpe, 1990).

The academic and industrial sponsors of the Knowledge Transfer Partnership under discussion are, respectively, Manchester Metropolitan University Business School (MMUBS) and Working Time Solutions Limited (WTS), a consultancy and systems provider of 'working-time change'. The paper provides rich insight, from the Associate's perspective, into the complexities of the tetra-partnership, and the ‘balancing act’ that is managing the often competing expectations of each of the four stakeholders: the Government (Dti), the knowledge centre (MMUBS), the small business (WTS) and the Associate. The paper concludes by making reference to some early positive and often unexpected outcomes for the KTP.

Teesside Business School, University of Teesside, Middlesbrough, UK, TS1 3BA

Tel: +44 (0)1642 342830

E-mail: p.wickham@tees.ac.uk

Effective funding for entrepreneurial venture start-up and expansion is essential in maintaining a competitive SME sector. The efficient market hypothesis for SME funding has come under increased scrutiny and found to be wanting. Informational asymmetry, game theoretical, institutional and cognitive effects have found to play a part in non-classical investor-entrepreneur relations. Simultaneously, ‘non-rational’ prospect theory has largely replaced ‘rational’ expected utility theory as the dominant descriptive theory of decision under risk. Prospect theory explains risk behaviour in terms of risk attitude, probability weighting and loss aversion. A number of independent studies, both laboratory and ecological confirm prospect theoretical implications for investment efficiency.

An experimental study of SME investor behaviour under laboratory conditions is conducted, using prospect theory as a theoretical frame and a recently developed approach to econometric measurement of risk attitude and probability weighting. The study finds that decision-maker’s attitude towards investment risk is sensitive to their engagement in judging the probability of the success of the target venture. Decision-makers (24 students on a MSc in business and finance) demonstrated a significantly reduced level of risk aversion when offered the opportunity to generate their own (endogenous) probability of the success of the target venture as opposed to when offered an (exogenous) probability by a supposed expert,.even when the credibility of the expert was emphasised and their own decision-making limited to just two-dimensions of data on the target. Probability weighting is not so affected.

If carried into a professional setting, such change in parameterised risk behaviour has significant implications for both theoretical understanding of, and practical management of efficient entrepreneur-investor relationships. These issues are discussed. Psychophysical (Hogarth-Einhorn ambiguity theory) and social psychological (source credibility theory) explanations for the effect are considered. An agenda for future research into the effect is promulgated.

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Llantwit Rd, Treforest, CF37 1 DL

Tel: +44(0)1443 482658 Fax: +44(0)1443 482949;

E-mail: swilkin1@glam.ac.uk

Llantwit Rd, Treforest, CF37 1 DL

Tel: +44(0)1443 483277 Fax: +44(0)1443 482949

E-mail: tpalazon@glam.ac.uk

Llantwit Rd, Treforest, CF37 1 DL

Tel: +44(0)1443 483277 Fax: +44(0)1443 482949

E-mail: rtunstal@glam.ac.uk

A large literature exists on the increase of regional learning economies pointing out the foundations of different forms of economic cooperation. The paper uses an ethnographic approach to investigate attitudes towards entrepreneurial initiative and failure. It particularly reports on an initiative to set up a centre for enterprise in a small village in Wales.

Attitudes towards entrepreneurship are considered among respondents. The study carries out measures of entrepreneurship on the basis of preferences for self-employment and involvement in enterprise. A review of the role of skills and espoused values in the making of entrepreneurs is undertaken.

The role of education and training is investigated alongside ways of encouraging entrepreneurial attitudes by fostering the right mind set and widening participation. The study shows that knowledge about business start up, and running a business increase the likelihood of positive attitudes towards entrepreneurship. The role of regional networks to foster entrepreneurship and contribute to raising the state of depressed regions is also discussed.

A series of barriers to entrepreneurship are also discussed such as risk aversion and collective mind set. The study also indicates directions for further research.

Luleå University of Technology, IES, SE-971 87 Luleå, Sweden

Tel: +46 920 492161 Fax: +46 920 492144

E-mail: joakim.wincent@ltu.se

After reviewing literature about strategic SME networks, I found that implications on if and how factors relate to competitively important outcomes are ambiguous. To contribute, this study models effects of potentially important factors as mentioned in prior literature. In particular, interest is directed to finding patterns among the factors that then is used to develop propositions as potential providers for mid-range theorizing in the domain of strategic SME networks. By using data from a population of 54 firms, paths and patterns of firm-related factors, partner-related factors, and inter-firm relation factors on competitively important outcomes (entrepreneurial behavior, resource contributions to the network entity, and direct firm performance effects) were identified by using structural equation modeling techniques. Findings suggest that the relationship between the proposed factors and competitively important outcomes is complex. All examined factors are influential, but the effect is seldom direct. Specifically, firm-specific traits (CEO personality and firm size) seem to have an important role in predicting inter-firm relations (in the SME network). Inter-firm relations in turn are related to both firm-specific attitudes (willingness to receive and contribute to other firms in the network) and partner-related attributes (trust and willingness to contribute to the trademark of the network). The findings also suggest a direct link between inter-firm relations and network outcomes. Finally, firm-specific attitudes tend to be related to firm-specific outcomes while partner-related attributes are related to network outcomes. Based on these results, a number of propositions are developed which may bring better prerequisites for future mid-range theorizing in this domain.

Napier University, Centre for Entrepreneurship, New Craig, Craighouse Campus, EH10 5LG

Tel: +44(0)131 455 5045 Fax: +44(0)131 455 6217

E-mail: b.winsor@napier.ac.uk

Case competitions, where in-class discussion is replaced by the student(s) presenting their case analyse to a panel of judges, have evolved from the case method of teaching. Numerous competitions are held each year, primarily in North America. While these competitions involve hundreds if not thousands of management students and lecturers, virtually no research has been done on their effectiveness as a teaching and learning tool. Their promise to bring a measure of competitive reality to the student experience would seem particularly appealing to entrepreneurship lecturers. The Scottish Institute for Enterprise (SIE) Entrepreneurship Case Competition, held last year, was the first case competition devoted solely to entrepreneurship. It provided a unique opportunity to evaluate whether a case competition is equipping entrepreneurship students with enterprise skills, in addition to the traditional case competition skills of problem analysis and discussion.

This paper examines the literature and presents the results of a survey of case competition participants and attempts to assess case competitions in the context of teaching and learning theory. The survey results indicate that a number of "enterprise skills" are enhanced by participation in the competition and that, like the case method itself, more work is required to link case competitions to teaching and learning theory. However, this ongoing work does increase the understanding of the effect and value of case competitions in the context of entrepreneurship education.

37 Front Street, Shotley Bridge, Co. Durham, DH8 0HQ

Tel: +44 (0) 1207 580914 Fax: +44 (0) 7092 307688

E-mail: jason@likemindedpeople.biz. Web Site: www.likemindedgroup.com

Woodruff (2002) developed a model of corporate entrepreneurship (CE) and high-performance comprising of four interrelated orientations: market orientation (MO); entrepreneurial orientation (EO); strategic orientation (SO) and organisational orientation (OO).

This paper presents a content analysis construct developed from this model. The content analysis is used to measure the extent to which four UK public limited companies (PLCs) express a commitment to CE through the content of their annual reports. 19 annual reports covering a period of 4 to 6 years between 1997 and 2002 for Diageo plc, Allied Domecq plc, Dairy Crest Group plc, and Associated British Foods plc were examined. A total of 102652 words were analysed.

The study highlights the contribution different parts of annual report text make to the content analysis construct. The usefulness of each of the words used in the content analysis construct in accurately representing the orientation they seek to measure is discussed. Changes over time of the measures of MO, EO and SO are plotted and examined in the light of the development of the company and its performance.

The results are presented as a single radar chart for the four years 1998, 1999, 2000 and 2001. This allows comparisons to be made between the four businesses. When aggregated the results suggest that over the period 1998 – 2001 Diageo plc communicated the strongest commitment to corporate entrepreneurship within the text of it’s Annual Reports and Associated British Foods plc the weakest.

8 Priory Road, Bristol, BS8 1TZ, UK

Tel: +44 (0)117 9546984 Fax: +44 (0)117 9546756

E-mail: mirela.xheneti@bristol.ac.uk

Entrepreneurship and small business development have been among the most emphasised phenomena in the post-communist transition economies. Apart from the conventional view on SMEs as the engines of growth in transition economies, the macroeconomic "textbook" approach that was taken in transition neglected the problems of the SME sector. A heavy emphasis was placed on the SME sector as having "system transformation capacities". However, the SME development right now reflects rather than influences the efficiency of institutions. Recently, there has been an emphatic shift in transition studies away from a focus on markets to institutions needed to orient the entrepreneurial spirit toward capital formation, investment, export expansion, the generation of new jobs, and fair competition which will lead to economic growth.

This paper reports on some of the findings of a PhD research study whose broader aim is to explore the impact that institutions (formal and social) have on SME growth in post-communist transition economies. The research is focused on the case of Albania which despite broad similarities with other transition countries, related to the transition process itself, has its particular historical, economic, political and social features which give a specific shape to institutional issues.

The analysis is placed in the framework of the business support infrastructure and the behaviours and attitudes it induces. Interview data from business support providers and SMEs show that the support structures are not responding to the particular needs of SMEs and to the socio-economic changes in Albania. This has led to the growth of scepticism and an increasing reluctance to use these services. Together with a lack of business culture and the non-conducive business environment they have negatively affected the business choices and decreased the exposure to a whole range of business opportunities.

The paper concludes that SME policies and support structures should be designed to promote the long-term prospects of SME development and that they should make a better and more innovative use of the resources available considering the economic and social situation in Albania.

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