Small Business Economics

Description

Practical information Course ID: FEB13035 Credits: 4 EC Instruction language: English Registration procedure: Via OSIRIS Secretariat: Support Office Applied Economics, T18-13, 010 4082776, office.ae@ese.eur.nl Course description Content: The small business is the most common type of business in every modern economy, and it is not just a scaled-down version of a large business. The course Small Business Economics is about the importance of small businesses and entrepreneurship for markets and economies. We offer a timely, interesting and socially relevant program focusing on the role of small firms in the economy, innovation and sustainability by small firms and small firms in middle- and low-income countries. Main topics addressed in this course include the differences between small and large businesses, drivers of small business entry and exit, government policy supporting small businesses, small firm innovation and technological change, sustainable entrepreneurship and sustainable transformation of industries, self-employment by choice and self-employment by necessity; constraints on female entrepreneurship; the role of small firms’ activities and informal firms for population health. As part of this course students will do assignments in the area of small business consulting and small business policy. Learning goals: The course Small Business Economics has the following three main goals: 1. Gain insight into characteristics and economic relevance of small and new businesses, and into factors that support or hinder (small) business entry, exit and performance. Questions addressed are e.g.,: - What are key differences between small and new firms and large firms? - In what ways do small and new firms contribute to the economy / society? - What are common definitions / typologies of small and new firms (entrepreneurs)? - What are key theories / models for new firm entry? - Why do small firms produce more new firms (entrepreneurs) than large firms (i.e., the small-firm effect)? - What are key explanations for firm exit? - What is the relation between new firm entry and exit? - What contextual factors (e.g., regulations, policies, financing options) exist to support small and new firms and why? 2. Identify and understand the role of small businesses with respect to technological change, innovation, and sustainability. Questions addressed are e.g.: - Are innovations coming from large or small firms? - How does heterogeneity among small businesses play a role in technological change and innovation? - How does the innovation process from start-ups (entrepreneurial model) differ from those of incumbents (corporate model)? - What drives and hinders small firms to engage in environmental practices? - How do market failures simultaneously contribute to harmful behavior of firms and serve as a source of opportunities for sustainable entrepreneurs? - What is the role of small firms in the sustainability transformation of industries? 3. Understand how small firms originate and operate in low- and middle-income countries (LMICs). Questions addressed are e.g.,: - What is the role of small firms in employment, job creation and economic development? - How does bribery/corruption impacts small firms? - In what ways do business and labor regulations and credit markets influence the performance of small firms in LMICs? - How does the informal economy affect environmental sustainability in LMICs? - What are the constrains of female entrepreneurship and employment in LMICs? - What is the impact of small firms’ activities on population health? Extra: None Study materials Zie Canvas / See Canvas Entrance requirements Entrance requirements course enrolment: You must meet the following requirements Enrolled for one of the following degree programmes BSc2 Econometrics ECON-DIV Econometrics and Operations Research Economics and Business Economics International Bachelor Econometrics and Operations Research International Bachelor Economics and Business Economics Period Enrolment periods: Enrolment period: 1 December 2025 until 16 January 2026 23:59 Unenrolment: until 16 January 2026 23:59 Period of education: 29 december 2025 until 28 februari 2026 Assessment Assessment materials: Lecture materials and literature (lecture slides, webcasts and journal articles) Assessments (result in OSIRIS): Test weight: 30; Test weight: 70 Assessment: Resit opportunity