Chapter 1 The Distinctiveness of Small Businesses

Chapter Contribution Small businesses are ubiquitous across the globe and they form a large part of the enterprise population in most economies. Understanding of the sector remains sketchy, despite there being concerted efforts since the 1970s to conduct research to give insight into the behaviour of small businesses. All businesses have to cope with their external environments, but the resource poverty of small businesses means that they may suffer disproportionately, and they certainly do not have access to the resources, financing and knowhow that large firms have to inform them about the most effective way to manage their resources, minimise threats and optimise opportunities in the environment. This chapter provides a holistic framework to enable deeper understanding of subsequent chapters.