Are Small Firms Important? Their Role and Impact

Are Small Firms Important? Their Role and Impact proposes and supports the claim that small firms make two indispensable contributions to the economy. First, they are an integral part of the renewal process that pervades market economies. New and small fi

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Are Small Firms Important? Their Role and Impact

edited by Zoltan

J.

Acs

University cif Baltimore and U S. Bureau cif the Census

Published in association with U.S. Small Business Administration

" ~.

Springer Science+Business Media, LLC

Library of Congress Cataloging-in-Publication Data Are small firms important? : their role and impact / edited by Zoltan J. Acs. p. cm. Includes bibliographical reference, and index. ISBN 978-1-4613-7356-8 ISBN 978-1-4615-5173-7 (eBook) DOI 10.1007/978-1-4615-5173-7 1. SmaU bu,iness-United State.. 2. New bu,iness enterpri.esUnited States. 3. SmaU business-Government policy-United States. 1. Acs, Zoltan J. HD2346.USA844 1999 338.6'42'0973-dc21 98-51488 CIP

Copyright O 1999 Springer Science+Business Media New York Origina1ly published by Kluwer Academic Publishers in 1999 Softcover reprint of the hardcover I st edition 1999 AU rights reserved. No part of thi, publication may be reproduced, .tored in a retrieval 'y,tem or transmitted in any form or by any meaos, mechanica!, photocopying, recording, or otherwise, without the prior written permission of the publi,her, Springer Science+Business Media, LLC. Printed on acid-ftee paper.

This printing is a digital duplication of the original edition,

CONTENTS

Contributors

vii

ix

Preface

JERE W. GLOVER

The New American Evolution ZOLTAN J. ACS

2 Small Firms and Efficiency

21

DAVID B. AUDRETSCH

3 Semiconductor Startups and the Exploration of New Technological Territory 39 PAUL ALMEIDA

4 Entry, Innovation and Firm Growth

51

JOHN R. BALDWIN AND JOANNE JOHNSON

5 Small Business and Job Creation in the United States: The Role of New and Young Businesses

79

JOHN HALTIWANGER AND C.J KRIZAN

6

Small Business, Entrepreneurship, and Industrial Dynamics 99 BO CARLSSON

7

Women-Owned Businesses: Why Do They Matter?

111

CANDIDA BRUSH AND ROBERT D. HISRICH

8

Don't Call Me Small: The Contribution of Ethnic Enterprises to the Economic and Social Well-Being of America 129 JOHN SIBLEY BUTLER AND PATRICIA GENE GREEN

9

Evolution, Community, and the Global Economy ZOLTAN

J.

10 Small Businesses, Innovation, and Public Policy JOSHUA LERNER

Index

147

ACS, RANDAL MORCK, BERNARD YEUNG

169

159

CONTRIBUTORS

Zoltan J. Acs U.S. Bureau of the Census and University of Baltimore Baltimore, MD Paul Almeida Georgetown University Washington, DC David B. Audretsch Indiana University Bloomington, IN John R. Baldwin Statistics Canada Ottawa, Ontario, Canada Candida Brush Boston University Boston, MA John Sibley Buder University of Texas Austin, TX

viii

Contributors

Bo Carlsson Case Western Reserve University Cleveland, OH Jere W Glover U.S. Small Business Administration Washington, DC Patricia Gene Green University of Missouri Kansas City, MO John Haltiwanger, U.S. Bureau of the Census and University of Maryland College Park, MD Robert D. Hisrich Case Western Reserve University Cleveland,OH Joanne Johnson Statistics Canada Ottawa, Ontario, Canada C.J. Krizan U.S. Bureau of the Census Washington D. C. Joshua Lerner National Bureau of