By Gavin Reid
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Additional resources for Foundations of Small Business Enterprise (Routledge Studies in Small Business)
This provides reassurance on the representative nature of the sample used in this chapter, and indeed elsewhere in this book. 3. Crucial to access to the field are the ‘gatekeepers’ who effect introductions and provide ‘ports of entry’. In this study they were the Directors of ETs (Moore, 1988) in Scotland,2 these being small enterprise stimulating units which are jointly funded by the private and public sectors (Reid and Jacobsen, 1988: Ch. 5; Reid, 1996b). The Directors of these units provided random samples of entrepreneurs from their client lists, subject to two restrictions, that they should be able to identify the date of inception of the enterprise, and that this date should be no more than 3 years from inception.
4 Where this term is used in the following few paragraphs, ‘typical’ means average or modal firm for the sample. 6). ) at that point, though useful in an indicative sense. In contrast, the data of this chapter reflect revised figures after the database had been audited, and necessary amendments and corrections made. 5 Though a majority of small firms (51 per cent) had bank loans. Gearing was high at 169 per cent though entrepreneurs expressed the hope that this would be more than halved over a 3 years time horizon.
The great bulk of entrepreneurs expected growth in business over the next few years. 2 Finance The average level of gross profit for a firm in the sample had risen slightly from about £104,000 to about £109,000. This was based on a level of average sales of about £396,000. Over half the firms (58 per cent) had debt, but only slightly more than previously (7 per cent) had any outside ownership. The main other source of finance which had been important in the life of the average firm was a bank loan (62 per cent).