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Analysing the composition of the SME sector in high- and low-income regions: Some research hypotheses

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  • Isidoro Romero

Abstract

Certain qualitative characteristics of the small- and medium-sized enterprises (SMEs) operating within a territory might be essential to explain their macroeconomic impact. From this perspective, this article explores the relationship between the composition of the SME sector and the level of regional economic development. In this regard, a conceptual framework to analyse the composition of SME sectors is proposed considering two key aspects: on the one hand, different dimensions of SMEs’ entrepreneurial orientation -- innovation, cooperation, proactivity and quality orientation; and, on the other hand, the role of the external effects resulting from the inter-firm productive linkages within a specific area -- differentiating between domestic, dependent, exporting and extravert SMEs. The relationship between these two key aspects is also considered and tested using a multinomial logit model. The empirical analysis uses data from a survey among over 650 SMEs in two Spanish provinces: Barcelona, as an example of a high-income economy, and Seville, as an example of a comparatively backward area.

Suggested Citation

  • Isidoro Romero, 2011. "Analysing the composition of the SME sector in high- and low-income regions: Some research hypotheses," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 23(7-8), pages 637-660, September.
    • Handle: RePEc:taf:entreg:v:23:y:2011:i:7-8:p:637-660
    DOI: 10.1080/08985626.2010.491872
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    1. Zoltan Acs & David Audretsch, 1990. "Innovation and Small Firms," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011131, April.
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    1. Paul, Justin & Parthasarathy, Sundar & Gupta, Parul, 2017. "Exporting challenges of SMEs: A review and future research agenda," Journal of World Business, Elsevier, vol. 52(3), pages 327-342.
    2. Alfonso Expósito & Amparo Sanchis-Llopis & Juan A. Sanchis-Llopis, 2021. "The effect of the manager gender on SMEs export and import decisions: Evidence for Spain," Working Papers 2115, Department of Applied Economics II, Universidad de Valencia.
    3. Vishal K. Gupta & William J. Wales, 2017. "Assessing Organisational Performance Within Entrepreneurial Orientation Research: Where Have We Been and Where Can We Go from Here?," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 26(1), pages 51-76, March.
    4. Carmen GUZMAN & Francisco J. SANTOS & María de la O BARROSO, 2020. "Cooperative Essence And Entrepreneurial Quality: A Comparative Contextual Analysis," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 91(1), pages 95-118, March.
    5. Renata Lisowska, 2015. "External Determinants of the Development of Small and Medium-Sized Enterprises – Empirical Analysis," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 11(4), pages 115-138.
    6. Alfonso Expósito & Amparo Sanchis-Llopis & Juan A. Sanchis-Llopis, 2022. "Manager gender, entrepreneurial orientation and SMEs export and import propensities: evidence for Spanish businesses," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 12(2), pages 315-347, June.
    7. Jana Kolaøíková & Ondøej Dvouletý & Petr Kolaøík, 2018. "Economic performance of the NUTS III Regions in the Czech Republic in the context of entrepreneurship subsidies from the EU Structural Funds," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 36(1), pages 129-153.

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