Comparative Small Business: Toward A Model

Abstract

This paper addresses the issue of comparability of the small business across geographical boundaries based on organizational contextual, structural variables and the effectiveness indicators. The authors argue that (1) there are already many features, profiles, managerial challenges and the role the small businesses play in a political economy that are common to many countries; (2) the gradual homogenization (due to successful penetration and integration of web based information and transactional technology) of business cultures in a borderless and seamless global business environment may enable tentative generalizations based on empirical as well as ethnographic studies. The paper first defines small business effectiveness and then outlines several common factors through a review of case and ethnographic studies. Finally, the author takes one of the common factors—the issue of capacity utilization and proposes a quasi deterministic empirical econometric model and shares the findings through a secondary analysis of survey data collected from 179 small scale enterprises in West Bengal, India. The findings reflect positively on the efficacy of the model. The authors conclude: the scholarly pursuits such as this are likely to enrich and contribute to the nascent comparative small business literature and enhance the empirical understanding of the small business dynamics. Consequently, a greater homogenization of the global business practices may facilitate more small business to small business transactions within the country specific diverse global business cultures.