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SBE Lect 3_ Part 6: Ch3.5- Ch4 (Comparison of explanations (Evidence tends…
SBE Lect 3_ Part 6: Ch3.5- Ch4
Comparison of explanations
Evidence tends to support market-based
rather than barrier-based explanation for formal training
What is less clear is the importance of informal training in both large and small businesses ◦
Learning things on the job
Similarities (e.g. Negative attitude / Resistance)
Less safe working conditions in smaller
businesses One example: slide 25/32
-->Fatality rate per 100,000 workers (manufacturing), 1992 – 2001
--> Sectors are also important
Job satisfaction
Workers in SME more satisfied than workers in large business
Large business workplaces have greater levels of formality (rules and procedures) ◦ Smaller business workplaces marked by greater levels of informality (e.g. owner-managers more likely to know their staff)
See slides 26-27/32
Formality and business size
Review of small and large workplaces --> ‘Small is beautiful’ or a ‘bleak house’?
Working for small or large company after
graduation?
2 videos mentioned slide 27-32
A big role in a small firm vs. a small role in a big firm
◦ Small business as stepping stone
◦ Switching possible
Conclusions
Small businesses are job generators but also lose many jobs
◦ Shane (2009): “Stop subsidizing the formation of the typical start-up and focus on the subset of businesses with growth potential.” (Gazelles)
◦ Evaluation of entrepreneurship policy programs utmost needed
Advantages and disadvantages of workplaces
◦ Large workplaces pay better, provide better fringe benefits, provide more formal training and are safer places in which to work
◦ Small workplaces have a workforce that is more likely to trust its managers. Despite being paid less, they also appear ‘happier’