Neil Fligstein
- Published in print:
- 2008
- Published Online:
- September 2008
- ISBN:
- 9780199231423
- eISBN:
- 9780191710865
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199231423.003.0007
- Subject:
- Business and Management, Political Economy
This chapter aims to supplement the understanding of entrepreneurship and competition by demonstrating that they cannot occur without governments and stable social structures to support them. It ...
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This chapter aims to supplement the understanding of entrepreneurship and competition by demonstrating that they cannot occur without governments and stable social structures to support them. It considers two major developments in the American economy that have been typically hailed as emblematic of the working out of free markets: the emergence of the ‘shareholder value’ conception of the firm and the rise and growth of Silicon Valley. It is shown that these phenomena were not just caused by entrepreneurial activity, but were embedded in pre-existing social relations. In both cases, the government played a pivotal role in pushing forward the conditions for ‘entrepreneurial activity’. The chapter discusses why governments sometimes do not figure in either economic or some economic sociological arguments about markets and economic growth, and suggests how an economic sociology with a view of embeddedness that includes governments, law, and supporting institutions offers a more complete picture of market evolution.Less
This chapter aims to supplement the understanding of entrepreneurship and competition by demonstrating that they cannot occur without governments and stable social structures to support them. It considers two major developments in the American economy that have been typically hailed as emblematic of the working out of free markets: the emergence of the ‘shareholder value’ conception of the firm and the rise and growth of Silicon Valley. It is shown that these phenomena were not just caused by entrepreneurial activity, but were embedded in pre-existing social relations. In both cases, the government played a pivotal role in pushing forward the conditions for ‘entrepreneurial activity’. The chapter discusses why governments sometimes do not figure in either economic or some economic sociological arguments about markets and economic growth, and suggests how an economic sociology with a view of embeddedness that includes governments, law, and supporting institutions offers a more complete picture of market evolution.
Mokal et
- Published in print:
- 2018
- Published Online:
- November 2018
- ISBN:
- 9780198799931
- eISBN:
- 9780191864759
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780198799931.003.0002
- Subject:
- Law, Company and Commercial Law
This chapter examines specific challenges faced by MSMEs. These challenges arise from factors such as size, lack of available collateral, undiversified nature, and lack of suitable external ...
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This chapter examines specific challenges faced by MSMEs. These challenges arise from factors such as size, lack of available collateral, undiversified nature, and lack of suitable external governance mechanisms, all of which contribute to a high MSME failure rate. As such, it is crucial for insolvency regimes to be responsive to MSMEs’ particular requirements. The chapter then discusses the need for cost-effective insolvency regimes tailored to these requirements, and the problems inherent in the development of such regimes. Cost-effective insolvency proceedings can encourage non-viable distressed firms to exit the market and efficiently recycle their assets to new uses, provide viable distressed firms with the chance to reorganize their operations and liability in order to continue in business, provide higher returns to MSME creditors and thereby incentivize lending in this sector, and encourage greater entrepreneurial activity and new firm creation. Ultimately, an effective MSME insolvency regime can alleviate the downside risk of a venture, in turn increasing the number and variety of people pursuing entrepreneurial activities.Less
This chapter examines specific challenges faced by MSMEs. These challenges arise from factors such as size, lack of available collateral, undiversified nature, and lack of suitable external governance mechanisms, all of which contribute to a high MSME failure rate. As such, it is crucial for insolvency regimes to be responsive to MSMEs’ particular requirements. The chapter then discusses the need for cost-effective insolvency regimes tailored to these requirements, and the problems inherent in the development of such regimes. Cost-effective insolvency proceedings can encourage non-viable distressed firms to exit the market and efficiently recycle their assets to new uses, provide viable distressed firms with the chance to reorganize their operations and liability in order to continue in business, provide higher returns to MSME creditors and thereby incentivize lending in this sector, and encourage greater entrepreneurial activity and new firm creation. Ultimately, an effective MSME insolvency regime can alleviate the downside risk of a venture, in turn increasing the number and variety of people pursuing entrepreneurial activities.
