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Productivity in Small Business: An Analysis Using African Data

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  • A. Roy Thurik

Abstract

Labor and floorspace cost functions are derived for small business trade. Relationships are proposed between average volume of labor or average floorspace per establishment on the one hand, and average size per establishment, average rental paid, percentage selling space, and indicators of business type and location on the other. Promising estimation results are reported using South African data of 1979/1980. The method however Is not restricted to the South African case. A productivity business support system can be developed providing productivity standards for any area in the small (service) business. An analysis similar to the one presented here, but relating to the area in question, should precede the development of such a system.

Suggested Citation

  • A. Roy Thurik, 1986. "Productivity in Small Business: An Analysis Using African Data," Entrepreneurship Theory and Practice, , vol. 11(1), pages 27-42, July.
    • Handle: RePEc:sae:entthe:v:11:y:1986:i:1:p:27-42
    DOI: 10.1177/104225878601100103
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    References listed on IDEAS

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    1. Nooteboom, Bart, 1982. "A new theory of retailing costs," European Economic Review, Elsevier, vol. 17(2), pages 163-186.
    2. Kooiman, Peter & Van Dijk, Herman K. & Thurik, A. Roy, 1985. "Likelihood diagnostics and Bayesian analysis of a micro-economic disequilibrium model for retail services," Journal of Econometrics, Elsevier, vol. 29(1-2), pages 121-148.
    3. Caves, Douglas W & Christensen, Laurits R & Swanson, Joseph A, 1981. "Productivity Growth, Scale Economies, and Capacity Utilization in U.S. Railroads, 1955-74," American Economic Review, American Economic Association, vol. 71(5), pages 994-1002, December.
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    Cited by:

    1. van Dalen, Jan & Thurik, Roy, 1998. "A model of pricing behavior: An econometric case study," Journal of Economic Behavior & Organization, Elsevier, vol. 36(2), pages 177-195, August.

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