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This article seeks to explore whether there is a role for venture capital in the funding of small and medium‐sized enterprises (SMEs) within a developing economy, where there has not been an established culture of equity‐linked funding. In addition, the links between venture capital and the concepts of Islamic banking are examined. The Malaysian economy is taken as a case study as it allows a discussion of venture capital issues alongside the potential for Islamic finance.

Over recent years an increasing amount of funds has been committed to mergers and acquisitions in the UK. Expenditure rose nearly tenfold from £2.3bn in 1983 to £22.1bn in 1988. This surge in spending has continued despite fears over economic trends, both domestic and international, and shocks in financial markets, notably the global col lapse in share values of October 1987. This monograph is essentially concerned with the events up to, and including, the first three quarters of 1989, ie, a period of two years after the crash of October 1987. Whilst the financing of mer gers and acquisitons activity is a fast moving arena, it does seem to be an opportune time to review developments to date and, tentatively, to suggest future trends in this sphere.

This paper is concerned with the learning needs of managers in SMEs that seek to become progressively international. A particular focus of attention is the informal learning practices that occur within the economic and social networks utilised by managers in this sector. Using both qualitative and quantitative approaches to data collection, the paper investigates the challenges perceived by managers engaged (or seeking to engage) in international activity. The results suggest three main areas of challenge: first, the early “pre‐internationalisation” stage, when decisions about “whether”, “where” or “how” to internationalise are taken; secondly, the development of longer‐term planning processes and business systems to cope with the consequences of the initial internationalisation decision; thirdly, the challenge of regulatory issues and the need to secure payment and manage foreign intermediaries. Further areas of learning need, which depend on the significance of international business for the firm, are also indicated. Existing structures, cultures and approaches to management can be maintained for many SMEs that undertake some limited international activity. Where international business is a more important factor, however, managers need to develop cultural appreciation and empathy to underpin their expertise and consolidate their market position. Indeed, sustained international development may require a significant reorienting of the business, underpinned by management and organisational learning to develop an appropriate international “mind‐set” that supports the effective development of relationships with stakeholders in different countries.

Before assessing the role of the Training and Enterprise Councils (TECs) in supporting small and medium‐sized enterprises (SMEs) in England, this paper highlights the importance of the SME sector and then briefly outlines the development of official policy towards SMEs over the past two decades. The introduction of the TECs in 1989 encompassed a number of features of the UK Government's SME policy. The TECs have been given wide‐ranging and challenging responsibilities. Whilst there is no clear demarcation line between the TECs' enterprise and training activities, this paper is more concerned with their role in promoting ‘enterprise’ in SMEs. A broad brush survey of TECs conducted for this paper reveals that the different TECs have adopted different approaches to fulfilling this role. The paper then describes an initiative offered by one particular TEC; the scheme in question enables SMEs to finance the use of consultants to assist in business planning and management development activities. The operation of this scheme encapsulates many of the key issues involved in SME policy, such as how to select companies for assistance and how to design an integrated programme of SME support. Finally, the implications of these findings for the future of the TECs are explored, with the caveat that the role of the TECs will inevitably mirror the (constantly evolving) government policy towards SMEs.

Compares the role of the recently established Training and Enterprise Councils (TECs) with that of the relevant German institutions of support for small and medium‐sized enterprises (SMEs). Examines the adequacy of each as a means of supporting SMEs in the context of overall SME policy. In the summer of 1992 the authors conducted a survey of the TECs in England and an in‐depth investigation of a management consultancy scheme at a particular TEC. The results from this work, along with other research into comparable German schemes, provided an invaluable source of information with which to evaluate the coherence of SME support. Certain problems were found with TEC schemes which were partially attributable to their infancy. The German case offers important lessons but should not be used as an exemplary model for the UK.

The topic of management training and development (MTD) in small businesses is relatively under‐researched, and an increased understanding of the factors influencing the purchase of MTD by small businesses is needed. Therefore, a survey of 551 small businesses in the Midlands region of the UK sought to: identify influences on MTD investment and preferred MTD activities; and establish whether small businesses perceive a link between investment in MTD and business success. Interviews were also conducted with 12 organisations. Results show that the organisational characteristics of ownership, size, number of managers and family management have a significant influence on MTD investment. Of the sample organisations, 85 per cent considered investment in MTD to be linked to business success and 80 per cent of organisations engaged in some form of MTD. However, promoters of MTD to small businesses need to recognise that organisations in this sector are not homogeneous and desire customised training.

The purpose of this paper is to investigate how small firms work at a micro-level, applying Bourdieu’s Capital Theory to give insight into the way individuals use the social and cultural capital at their disposal, to innovate and solve problems.

The authors applied qualitative methods to explore problem solving and innovation activities at the micro-level in small firms, using interviews and thematic analysis.

The findings reveal that, compared to firms with lower levels of social and cultural capital, firms which possess higher levels of social and cultural capital have a higher success rate in problem solving and are more likely to engage in innovative activity. Social and cultural capitals complement and reinforce one another in small firms, for example an enhanced ability to utilise networks (social capital) allows small firms to access a greater diversity of knowledge (cultural capital).

Little is known about how different forms of capital are utilised in the day-to-day operations and problem solving of small firms: the application of Bourdieu’s Capital Theory offered an original frame in which to explore these activities.

This paper considers the impact of the Investors in People (IIP) Standard upon small‐ to medium‐sized enterprises (SMEs) in the Midlands. The paper describes IIP, then considers the significance of SMEs and the impact of training and development in that sector. The paper then presents an analytical framework, firmly rooted in a literature review, that provides the basis for an examination of the reasons why SMEs might commit (or fail to commit) to IIP, the difficulties encountered and the benefits received. Our empirical findings are discussed in the context of this framework. These findings are based on questionnaire responses from almost 600 SMEs, and interviews with promoters of IIP. Some key responses are broken down according to size‐band and/or growth‐orientation. In addition, follow‐up interviews were conducted with selected firms, ranging from IIP enthusiasts to rejecters. This study therefore combines quantitative data with qualitative input. The attitudes and experiences of the respondents offer fresh insight into the appropriateness of IIP as an organisational development tool for the SME sector. The SME support network in England and Wales is undergoing a critical transition. The role of the Training and Enterprise Councils in promoting IIP to SMEs also comes under scrutiny, and our study has lessons for the promotion of IIP by the new learning and skills councils.