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Extra info for Capacity Building in Economic Education And Research: Lessons Learned And Future Directions
Capital requirements) are generally lower in these expanding sectors. Registration and deregistration rates by region (not shown) also vary, being highest in London and lowest in the north east of England, Wales, Scotland and Northern Ireland. There have been changes over time. The VAT stock rose by one-third between 1980 and 1990, with a net increase in every year of the decade. In the 1990s growth ceased and the stock was still below 1990 levels in 2001. 8 Source: Calculated from SBS data. 4 22 Small firms and their owners Risk and survival The SBS publishes three-year survival rates of VAT businesses, which show that in 1998, the percentage of firms first registered three years previously and still trading was 64 per cent (up from 60 per cent in 1993).
The Bolton Committee, which took the former interpretation, was later criticised for having adopted a rosy view of employment relations in small firms which, being largely ununionised, provided little evidence of conflict to the public view. In Chapter 9 of STANWORTH & GRAY (1991), it was pointed out that, compared with the immense literature on entrepreneurship, little attention had been given to employment relations in small firms, and this remains true today. Such research as had been done, and that has been done subsequently, does suggest that things are not quite as rosy or as straightforward as the Bolton Committee asserted, though there is controversy – see John Atkinson and David Storey, ‘Small firms and employment’, in ATKINSON & STOREY (1994).
The mass of SMEs are still seen as vestiges of the agricultural, craft-dominated past – indeed, almost as a backward peasantry. The universal persistence of official measures for the support and modernisation of small firms bears witness to the prevailing view that while SMEs are in need of help and are something of a drag on the economy, the real motor of economic growth is large enterprise which can benefit from economies of scale, investment, research and development (R&D) and scientific management.