SME Performance and Policy (CBR project)

Overview

Aims and objectives

This project is concerned with developing and testing models of small and medium sized enterprise (SME) performance and its determinants, with policy analysis and with methods of complex survey design and analysis necessary to investigate models of business performance. Performance includes innovative activity and export activity, as well as growth, profitability and survival. Determinants include internal management and organisational characteristics, the strategic behaviour of managers including strategies of co-operation and collaboration, as well as external environmental factors, including financial, labour and product market constraints. The project is concerned with policy evaluation and evaluation methodology, and with the comparison of the performance characteristics of different groups of firms including high-technology and conventional businesses. The project develops and utilises appropriate databases for these purposes including, in particular, the complex panel survey data generated by the CBR biennial survey of SMEs. This survey is carried out by the project leaders and managed by Anna Bullock via the CBR Survey and Database Unit. The project is also concerned with the development of appropriate survey instruments for performance measurement and analysis. It also draws on the results of a complementary project on methods of missing data imputation (Missing Observations in Survey Data: An Experimental Approach) to enhance the usefulness of performance survey datasets. The econometric analysis undertaken is characterised by the development and use of appropriate multivariate techniques including sample selection modelling and robust regression methods. Careful account is taken of the extreme heterogeneity of SME performance and the endemic sample attrition and self-selection biases which can arise in complex panel data analysis. In addition the project produces rigorous but user friendly presentations of key survey results in the biennial publication of reports based on the CBR SME survey, as well as custom designed articles for practitioner journals. Use is also made of complementary case study and qualitative analytical techniques, and of interview based piloting of alternative survey instruments to assist in complex survey design.

CBR SME Survey 2011

The CBR has carried out surveys of British SMEs in 1991, 1993, 1995, 1997, 1999, 2002, 2004 and 2008 and has created several panels of firms. This rich material has led to several publications relating to training, management practices, innovation, business advice and finance; and their impacts on firm performance. The last study was carried out in November 2008 at the onset of the credit crunch recession and compared how SMEs were faring in raising finance compared with both 2004 and the previous recession of 1991. The 2011 survey has resulted in over 1900 responses, the analysis of which has recently begun. One important part of this analysis is to explore the financing of SMEs three years into the recession. Another important novel aspect of this survey is an in-depth exploration of family businesses.

Project leaders

Alan Hughes
Andy Cosh

Other principal investigators & associates

Anna Bullock
Bob Bennett
Xiaolan Fu
Jaeho Lee
Vadim Grinevich
Ana Siqueira
Douglas Cumming (York University, Ontario)
Isobel Milner
Fabrizio Trau (Italian Confederate of Industry)

Project status

2016

Funding

ESRC
AIST, Japan
Various other shorter term funds and contract research grants

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