Entrepreneurship and competitive strategy in the new small firm: an empirical investigation

Abstract

Entrepreneurship is usually associated with the small (i.e. owner-managed) firm. The small, rather than the large, firm is often recognised for exhibiting innovation, profit 'maximisation, and risk-taking. And, it is the setting-up of a new firm (which is typically small by nature) that is the most obvious example of entrepreneur.ship.

This thesis is concerned with the direct investigation of the inception and development of the new small firm. The objective is to increase awareness and understanding of the nevi small firm without being critical or judgmental; a positive, rather than normative, approach is taken.

A data base containing numerical and textual information was established by fieldwork methods. The instruments of investigation include an administered questionnaire and a semi-structured interview. The administered questionnaire contains 5 sections: (1) General; (2) Pricing; (3) Costing; (4) Sales and Competition; and (5) Finance. The semi-structured interview contains 3 sections: (1) Competitive Forces; (2) Competitive Strategy; and (3) Defensive Strategy.

The sample consists of 73 new small firms in Scotland. The sampling procedure used was judgmental or non-probabilistic. The Edinburgh Venture Enterprise Trust, Glenrothes Enterprise Trust, Irvine Development Corp., Leith Enterprise Trust, and Scottish Development Agency assisted in the establishment of the sample.