Editorial

Citation

Matlay, H. (2010), "Editorial", Journal of Small Business and Enterprise Development, Vol. 17 No. 1. https://doi.org/10.1108/jsbed.2010.27117aaa.001

Editorial

Article Type: Editorial From: Journal of Small Business and Enterprise Development, Volume 17, Issue 1

Prior to writing the editorial for the first issue of Volume 17 of the Journal of Small Business and Enterprise Development, I paused briefly in order to reflect upon an exciting and eventful publishing journey. The current volume is the ninth year under my editorship and over the previous eight years we have improved, grown and matured into a well known and much respected journal in the field of small business and entrepreneurship research. When I took over as Editor in 2001, most colleagues viewed this journal as a beginner’s outlet, firmly positioned at the bottom of the European league of specialist publications. Few, if any, have heard of JSBED outside the UK, and it drew contributions mostly from a minor annual conference held in this country. Early on, we decided to focus upon publishing quality articles and growing this journal organically, on firm and positive foundations. This strategy has worked well and we are currently ranked midway, or even higher, in most national and international journal quality listings. We will continue our strategy of publishing high-quality articles authored by beginners as well as established academics and researchers. As we receive the majority of our contributions from outside the UK, the international nature and reputation of our journal is likely to grow further and hopefully enhance its rating as a premier outlet of high-quality articles. Continuous feedback received over recent years indicated that both our general issues and special issues are highly valued and respected by policy makers, researchers, educators and practitioners as a source of specialist and empirically rigorous knowledge base. Despite our many successes, we are keenly aware that much remains to be done in order to ensure that we consolidate and enhance our hard earned position on the premier list of quality journals.

Although signs of economic recovery have been noticed in some markets across the world, most developed and developing nations are still struggling to cope with the negative impact of systemic recessionary conditions. Increasingly, media coverage has moved its focus from large firm closures and related job losses to the plight of entrepreneurs and their small businesses. In the UK, the current recession is the longest since the records began some 55 years ago. National GDP has been declining steadily for the previous six consecutive quarters, having contracted a total of 5.9 per cent from its record peak before the onset of the recession. The number of unemployed individuals in the UK has increased considerably since the recession started in autumn 2007. Interestingly, however, a growing proportion of those who lost their jobs as a result of the ongoing recessionary conditions have decided to use their saving and/or unemployment benefits either to change careers or to start their own businesses. Aptly called “recession entrepreneurs”, these individuals and their new businesses appear to thrive, and in some notable cases, even grow under difficult or volatile economic conditions. Some countries, such as the USA and Japan, have exited the recession and are tentatively commencing their economic recovery. Recent (November 2009) Eurostat statistics show that cumulatively, the 16-country eurozone economy has grown by 0.4 per cent during the third quarter in 2009. Unfortunately, over the same three-month period, the UK economy has contracted by a further 0.4 per cent, confirming the record duration of the current recession in this country. We remain hopeful, however, that the worst of recessionary conditions are over and that economic recovery and growth are soon to begin in the UK and elsewhere in Europe.

This issue consists of eight articles which, individually and cumulatively, evidence the wide diversity of interests and themes addressed by researchers as well as the variety of empirical approaches at their disposal. In the first contribution, Littunen and Niittykangas examine factors influencing the growth of new firms in the Finnish manufacturing and service sectors. Their research highlight a link between entrepreneurial ‘knowhow’ and high growth strategies. In addition, this study demonstrates that external networks can facilitate sustainable competitive advantage, innovation and efficiency in young firms. In the next article, Marvel and Droege explore the role of tacit knowledge during the opportunity recognition stage of the entrepreneurial process. Prior hands-on experience in product and service development and knowledge of markets proved vital to achieving first year sales targets in newly created high tech firms. In contrast, tacit knowledge of customer problems and technology emerged as less important. Next, Pansiri and Temtime investigate the perceived critical success factors (CSFs) affecting the performance of small to medium-sized enterprises (SMEs) and their relationship with firm characteristics. The authors found ten distinct sets of CSFs that affected the performance and development of SMEs as well as important relationships amongst these CSFs. In the fourth article, Baixauli and Módica-Milo construct a financial health indicator in order to decontaminate the estimation sample and to make predictions which are not biased by unhealthy firms. The authors argue that the proposed financial health indicator permits the heterogeneity of firms to be reduced and therefore facilitate the identification of a strong firm sample that could accurately estimate bankruptcy probabilities.

In the next contribution, Chatzoglou, Vraimaki, Diamantidis and Sarigiannidis focus upon factors affecting personal computer adoption in Greek SMEs. The results indicate that perceived ease of use is more powerful in explaining computer acceptance, usage and satisfaction. Perceived usefulness appears to have a strong impact upon computer adoption. These findings underline the importance of internal and external support in ensuring wider computer acceptance in SMEs. In the sixth article, Dessì and Floris investigate the impact of management-customer relations upon the competitive advantage of small and medium-sized family businesses. It emerged that sustainable competitive advantage relies on management to understand their customers’ needs and for customers to identify these firms as the source of solutions to their problems. Furthermore, customers’ preference for these firms rather than their competitors is mostly a result of their degree of satisfaction with the solutions on offer. Ekanem examines issues relating to liquidity management in small firms and how such needs may be best met. Interestingly, the results suggest that liquidity management in smaller firms is mostly based on owner-manager past experiences or the experiences of other managers, and is strongly influenced by industry norms. It is not based on the calculation of costs and benefits of particular cause and action equation. In the final article, Piperopoulos explores the factors that contribute to the emergence of ethnic minority businesses and immigrant entrepreneurship in Greece. The author found that theories of “block mobility”, “opportunity structures” and “ethnic resources” are complementary in explaining the process of starting up an ethnic minority business. The “cultural thesis” represents an important explanatory theory that stands on its own in explaining the emergence on immigrant entrepreneurship in Greece.

Finally, as has become customary, I would like to extend my gratitude to the many individuals who have contributed, directly or indirectly, to the publication of this issue, including authors, referees, advisers and the production team at Emerald Group Publishing. In particular, I would like to thank Andrew G. Smith and Ruth Heppenstall for their help and support with Volume 16 as well as the first issue in Volume 17 of JSBED.

Harry MatlayBirmingham City Business School, Birmingham, UK