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SBE Lect 3_ Part 1: Ch3.5- Ch4 (Today’s agenda (Chapter 4: Working in a…
SBE Lect 3_ Part 1: Ch3.5- Ch4
Case 2 today
Tuesday 15 January 2018 (yesterday): Deliveroo has to give their workers a contract
Last year, Deliveroo stopped offering contract to new workers--> New workers were treated as own-account workers (solo self-employment)
Verdict of judge based on assessment actual work practice--> “Bankruptcy of earnings model?”
Today’s agenda
Chapter 4
: Working in a small business
Estimating the extent to which job creation takes place in businesses of different size --> Policy question: How to support job creation?
The quality of jobs in small businesses
Intro assignment 1
Chapter 3
(second part)--> The changing importance of small businesses in the economy(?)
The Dutch case: business ownership rate (non-agricultural)
Have small businesses gained importance in the economy?
The move from the “managed” to the “entrepreneurial” economy
Until 1980 “managed economy”
Increasing consumption, economies of scale, standardization of production (e.g., Ford)
Predictability of demand (Focus on efficiency)
Global players with global products
See slide 4-5/32
ICT
Communism (centrally managed economy) initially successful
However, companies became too big to manage (advent of business schools) Source: Thurik, Stam & Audretsch (2013)
◦ Increase service sector
◦ Differentiation of customer preferences, more business opportunities
◦ Other motivational drivers (self-actualization)
Stylized differences
Managed economy
Safe and good jobs
Predictability of demand
Focus = Firm
Economies of scale
Entrepreneurial economy
Switching between jobs and self- employment
Focus = Entrepreneur
Creative destruction
Flexibility of production
Can we empirically observe the change
to the “entrepreneurial economy”?
Difficult! Bottlenecks
Availability of comprehensive continuous data
Difference between firm and individual statistics
The United Kingdom as “test case”
Together, are you convinced of profound changes in the UK’s enterprise population?