Some Theoretical and Conceptual Issues in the Study of Employment Relations in the Small Service Sector Firm

Industrial relations researchers have typically directed their attention towards large manufacturing firms to the neglect of the small business. This situation is becoming increasingly difficult to justify particularly for small service sector firms. Between 1980–88 there was a 22% increase in the number of businesses registered for VAT (British Business 1989) which suggests a considerable rise in the number of small firms. About 96% of all firms have less than 20 employees and these firms, it is estimated, account for 36% of total private sector employment in the UK (G. Bannock and Partners Ltd, cited in Dept of Employment 1989). The small firm population is markedly skewed towards services with nearly 90% of all small businesses (1–24 employees) in services of construction (Cur‐ran and Burrows 1988).