How management teachers can help small firms Available to Purchase

Even though an ever increasing proportion of the national output stems from the giant companies in Britain, small firms are still a significant part of the economy. The under publicised REPORT OF THE BOLTON COMMITTEE OF INQUIRY ON SMALL FIRMS indicated that there are over a million small firms (defined as those with fewer than 200 employees). Between them, these small firms employ more people than the entire public sector and they produce 20 per cent of the gross national product. Although labour productivity (net output per head) in small firms tends to be lower than in large companies this is partly because many small firms are found in the labour intensive industries. On the other hand, small firms generate a better return on capital employed than do large firms. The Bolton Committee concluded that, in their overall use of resources, small firms are no less efficient than large firms. So what can management teachers do to promote the survival and prosperity of this vital sector of the economy? To answer this question we must first understand the nature of the problem.