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Small Firms, Borrowed Size and the Urban-Rural Shift

Author

Listed:
  • N. A. Phelps
  • R. J. Fallon
  • C. L. Williams

Abstract

In this paper we suggest that some elements of the observed urban-rural shift in firm formation and growth may centre on the phenomenon of 'borrowed size'. In doing so, we make a link between literature on the geography of small firm formation and growth, the theory of agglomeration and the relations among settlements within urban systems. Spatial externality fields have expanded over time so that small firms can locate in smaller settlements and yet access specialized labour and informational external economies of nearby larger urban areas. We examine the relevance of aspects of borrowed size in the relationship of small firms in Leighton Linslade and Lichfield to the local economy and nearby larger urban centres. In particular we question the contribution of local institutional support to the growth of rural enterprise stressed in recent analysis. We conclude by briefly noting the implications of borrowed size for conceptions of the local economy and local economic policy. Cet article cherche a avancer la proposition suivante: il se peut que certains elements du deplacement urbano-rural observe de la constitution et du developpement des entreprises portent sur la notion de 'taille empruntee'. Ainsi, on etablit un lien entre la documentation sur la geographie de la constitution et de la croissance des petites entreprises, la theorie de la concentration geographique et les rapports entre les zones d'habitation au sein des systemes urbains. La portee des effets externes geographiques s'est repandue sur le temps, ce qui a permis aux petites entreprises de s'implanter dans des zones plus petites et pourtant d'avoir acces a une main-d'oeuvre specialisee et aux economies externes d'information dont jouissent les zones urbaines plus grandes qui sont a proximite. On examine la pertinence de certains elements de la notion de taille empruntee quant au rapport des petites entreprises situees a Leighton Linsdale et a Lichfield avec l'economie locale et les grands centres urbains a proximite. En particulier on remet en question la contribution du soutien local institutionnel a la croissance des entreprises rurales, sur laquelle des analyses recentes mettent l'accent. Pour conclure, on note les retombees de la notion de taille empruntee pour ce qui est des conceptions de l'economie locale et de la politique economique locale. In diesem Aufsatz geben die Autoren ihrer Vermutung Ausdruck, dass manche Elemente der beobachteten Verlegung von Firmen von der Stadt aufs Land bei ihrer Bildung und ihrem Wachstums auf das Phanomen der 'geliehenen Grosse' zuruckgehen. Dadurch wird eine Verbindung zwischen Literatur uber die Geographie der Bildung und des Wachstums kleiner Firmen, der Theorie der Ballung und Beziehungen unter Niederlassungen in stadtischen Systemen hergestellt. Raumliche Externalitatsgebiete haben sich im Laufe der Zeit ausgedehnt, so dass kleine Firmen sich in kleineren Ortschaften niederlassen konnen, sich jedoch gleichzeitig Zugang zu Fachkraften und nahe gelegenen externen Informationswirtschaften grosserer Stadtgebiete erhalten. Es wird die Relevanz bestimmter Aspekte geliehener Grosse in der Beziehung kleiner Firmen in Leighton Linslade und Lichfield zur ortlichen Wirtschaft und zu nahe gelegenen grosseren stadtischen Zentren untersucht. Besonderer Prufung unterzogen wird die Gewahrung ortlicher institutioneller Unterstutzung des Wachstums landlicher Unternehmen, die in kurzlich veroffentlichten Analysen hervorgehoben wurde. Den Abschluss bildet eine kurze Erwahnung der Implikationen geliehener Grosse fur Vorstellungen von Wirtschaft und Wirtschaftspolitik am Orte.

Suggested Citation

  • N. A. Phelps & R. J. Fallon & C. L. Williams, 2001. "Small Firms, Borrowed Size and the Urban-Rural Shift," Regional Studies, Taylor & Francis Journals, vol. 35(7), pages 613-624.
  • Handle: RePEc:taf:regstd:v:35:y:2001:i:7:p:613-624
    DOI: 10.1080/00343400120075885
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    References listed on IDEAS

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    4. hUallachain, Breandan O & Satterthwaite, Mark A., 1992. "Sectoral growth patterns at the metropolitan level: An evaluation of economic development incentives," Journal of Urban Economics, Elsevier, vol. 31(1), pages 25-58, January.
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