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• W204886624 abstract "The employment performance of indigenous firms in Ireland has been decidedly poor. Unemployment in Ireland has averaged 14 percent over the past 20 years and currently stands at 18 percent, despite the existence of such positive macro-economic factors as a declining national debt/GNP ratio and a positive balance of trade. While foreign-owned firms registered a net loss of 521 jobs during the 1983-89 time period, indigenous medium and large firms lost 31,881 jobs over the same time period. By contrast, indigenous small firms showed a net increase of 9,234 jobs during that time frame (Department of Industry and Commerce 1990, 80). This has served to increase the Irish government's dependence on the smaller, indigenous, owner-managed firm as a key element in government policies regarding economic development. The government has described the small firm sector as a seedbed...from which larger internationally trading enterprises can develop (Department of Industry and Commerce 1990, 76-77). Although the contribution of the indigenous small firm sector to Irish employment has been significant, the growth of existing firms within this sector has historically been weak. Most of the job creation has come from the startup of new firms, not from the growth of existing firms. For example, since 1973 only one percent of new enterprises in Ireland have grown to employ more than 50 people, and most new ventures in Ireland do not grow beyond 30 employees (Department of Industry and Commerce 1990, 81). These figures suggest that the national priority of indigenous firms, particularly indigenous firms which grow to a size employing more than 50 employees, faces significant obstacles. In terms of small firm growth strategy, recent studies indicate that internal managerial issues are the most significant obstacles to growth in the small firm (McGee 1989). Maintaining growth often strains the internal marketing and innovative resources of the firm and depends largely upon the continuous development of product and cost advantages (Barber, Metcalfe, and Porteous 1989). Further, most small firms grow by moving from operating in relatively narrow market niches to serving a larger number of market segments. This requires a broadening of the internal skill and knowledge bases of the enterprise in order to match and adapt to the demands of a changing environment (Stasch and Ward 1985). McGee has argued that this process of continual realignment with the two primary environments of the firm (external and internal) puts particular pressure on the firm in its early growth stages. McGee further contends that the most fundamental potential influence on small firm growth is the internal management of the firm (see also Boswell 1973, Child, et al. 1975, Deeks 1976, Carland, et al. 1984, O'Farrell and Hitchins 1989). While the owner-manager's central role in small firm growth has been identified, little research has been undertaken which investigates his or her role in an established firm as opposed to creating a new venture (Davidsson 1989). At issue is whether the orientation of an owner-manager who seeks to grow a firm is different from the one who seeks to establish a firm. To date, much research has focused on personality differences between entrepreneurs and large firm managers (Sexton and Bowman 1986; Lorrain and Dussault 1988; Chell, Haworth, and Brearley 1991). What has been lacking are both an exploration of differences between small firm owner-managers who want to establish a going concern from those who want a growing concern and a linking of those differences with the performance of the firm. RESEARCH FOCUS This research focuses on the confluence of these four issues: (1) the employment problem in Ireland; (2) the key role of the indigenous small firm in providing employment; (3) the crucial role of the owner-manager in directing the small firm; and (4) the divergence of small firm employment performance between entrepreneurial firms and continuing enterprises. …" @default.
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• W204886624 date "1995-07-01" @default.
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• W204886624 title "Owner-Manager Adaptation/innovation Preference and Employment Performance: A Comparison of Founders and Non-Founders in the Irish Small Firm Sector" @default.
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