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Public Policy and Small and Medium Enterprise Development




Type Of Work


  • Scholarly edition

Abstract


  • We review the policy arguments in favour of assisting SMEs in various

    areas of their operations. Our review suggests that many of the arguments put

    forward for subsidising SME activities (as distinct from some activities of

    firms regardless of size) are not economically justified. Nonetheless, it is

    widely acknowledged that SMEs suffer from disadvantage relative to large firms,

    principally in the areas of access to information and technology. We then study

    the possibilities offered by networks in helping SMEs deal with the disadvantages

    they experience. Our examination indicates that there are benefits that firms

    can derive from participating in networks. Further, because networks can assist

    firms overcome some of their inherent disadvantages, they can become less reliant

    on public assistance and more able to compete on an equal footing with larger

    firms once the initial impetus is provided for the formation of cooperative

    networks that can enable firms to compete more effectively.

Publication Date


  • 2003

Citation


  • Harvie, C., & Lee, B. -C. (2003). Public Policy and Small and Medium Enterprise Development. Retrieved from http://business.uow.edu.au/econ/who/index.html

Web Of Science Accession Number


Type Of Work


  • Scholarly edition

Abstract


  • We review the policy arguments in favour of assisting SMEs in various

    areas of their operations. Our review suggests that many of the arguments put

    forward for subsidising SME activities (as distinct from some activities of

    firms regardless of size) are not economically justified. Nonetheless, it is

    widely acknowledged that SMEs suffer from disadvantage relative to large firms,

    principally in the areas of access to information and technology. We then study

    the possibilities offered by networks in helping SMEs deal with the disadvantages

    they experience. Our examination indicates that there are benefits that firms

    can derive from participating in networks. Further, because networks can assist

    firms overcome some of their inherent disadvantages, they can become less reliant

    on public assistance and more able to compete on an equal footing with larger

    firms once the initial impetus is provided for the formation of cooperative

    networks that can enable firms to compete more effectively.

Publication Date


  • 2003

Citation


  • Harvie, C., & Lee, B. -C. (2003). Public Policy and Small and Medium Enterprise Development. Retrieved from http://business.uow.edu.au/econ/who/index.html

Web Of Science Accession Number