Principles of technopreneurship

Description of a Small Business

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Techno 1 notes

Description of a Small Business
What is a Small Business In practice it is difficult to define characteristics and management issues of small businesses and even more difficult to draw a precise line that separates small from large firms. It is however, possible to describe what a small business is. Small businesses do not conform to any neat parameters. Much depends on the industry in which they operate and the personalities of those that run them.
Bolton report definition of a Small Business
The Committee of Inquiry on Small Firms setup by the United Kingdom government in
1969 under the Chairmanship of J. E. Bolton recognized the diversity in the definition of what a Small Business is in their report published in 1971. In its report, the Committee came up with the following description Small firms are present in virtually every industry and the characteristics they share as small firms are sometimes not as apparent because of the differences arising from the contrasting conditions of the different industries. There is also extreme variation as regards
 Efficiency
 Methods of operation
 The nature of the market served and
 The size of the resources employed. Thus a manufacturing business employing up to 200 people has very little in common with a small shop owned and run by a married couple
Characteristics of a Small firm
The Bolton Report proposes that a small firm has the following characteristics

Technoprenuership1 7 a) Is managed by its owners) in a personalized way b) Has a relatively small share of the market in economic terms and c) Is independent in the sense that it does not form part of a larger enterprise and its ownership is relatively free from outside control in its principal decisions.
Quantitative measurements of small firms
The Report put forward the following quantitative parameters to describe small firms
Small firm type

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