Cottage and Small Firm "Presence" in Indonesian Manufacturing between 1975–1996

Cottage and Small Firm "Presence" in Indonesian Manufacturing between 1975–1996 Firm "presence" in the Indonesian manufacturing sector is examined within a cross-section of eight cottage and small industries over eight time periods. It is empirically confirmed that in the Indonesian manufacturing sector, small firm presence is more important in industries where there is high vertical integration and no significant economies of scale in management. The results confirm that even if productivity levels are low, firm presence does not diminish and that clear boundaries exist between small and cottage industries in terms of their entrepreneurial activity. Small firm presence is responsive to cost of capital: as cost of capital increases, firm presence declines. The results also confirm that as the overall economic environment improves, medium and large firms tend to grow and are favored more and this squeezes out small firms. The results also indicate that industry support mattered for firms in ISIC industry groups wood and wood products and non-metallic mineral products. The empirical results for cottage firms were largely similar to small firms except that for cottage firms cost of capital does not matter much and there is no evidence of spillover effects of industry support from small firms to cottage firms. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Small Business Economics Springer Journals

Cottage and Small Firm "Presence" in Indonesian Manufacturing between 1975–1996

Loading next page...
 
/lp/springer_journal/cottage-and-small-firm-presence-in-indonesian-manufacturing-between-13n9RXjF0b
Publisher
Kluwer Academic Publishers
Copyright
Copyright © 2001 by Kluwer Academic Publishers
Subject
Business and Management; Management; Microeconomics; Entrepreneurship; Industrial Organization
ISSN
0921-898X
eISSN
1573-0913
D.O.I.
10.1023/A:1011121523727
Publisher site
See Article on Publisher Site

Abstract

Firm "presence" in the Indonesian manufacturing sector is examined within a cross-section of eight cottage and small industries over eight time periods. It is empirically confirmed that in the Indonesian manufacturing sector, small firm presence is more important in industries where there is high vertical integration and no significant economies of scale in management. The results confirm that even if productivity levels are low, firm presence does not diminish and that clear boundaries exist between small and cottage industries in terms of their entrepreneurial activity. Small firm presence is responsive to cost of capital: as cost of capital increases, firm presence declines. The results also confirm that as the overall economic environment improves, medium and large firms tend to grow and are favored more and this squeezes out small firms. The results also indicate that industry support mattered for firms in ISIC industry groups wood and wood products and non-metallic mineral products. The empirical results for cottage firms were largely similar to small firms except that for cottage firms cost of capital does not matter much and there is no evidence of spillover effects of industry support from small firms to cottage firms.

Journal

Small Business EconomicsSpringer Journals

Published: Oct 3, 2004

References

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 12 million articles from more than
10,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Unlimited reading

Read as many articles as you need. Full articles with original layout, charts and figures. Read online, from anywhere.

Stay up to date

Keep up with your field with Personalized Recommendations and Follow Journals to get automatic updates.

Organize your research

It’s easy to organize your research with our built-in tools.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

DeepDyve Freelancer

DeepDyve Pro

Price
FREE
$49/month

$360/year
Save searches from Google Scholar, PubMed
Create lists to organize your research
Export lists, citations
Read DeepDyve articles
Abstract access only
Unlimited access to over
18 million full-text articles
Print
20 pages/month
PDF Discount
20% off