A THEORETICAL FRAMEWORK FOR SMALL BUSINESS POLICY

A number of public policy issues have been discussed in this article, the most important of which are: 1. Small business would not need special consideration if our economy were basically a competitive one. 2. A large and growing segment of our economy has sufficient market and political power to make our economy basically non-competitive. 3. Small firms tend to provide price competition, to lead in the development of new products and processes, and to generate new innovations and new employment. 4. Government policy tends to create artificial economies of scale, giving an unwarranted advantage to the very large firm. As a first approximation, a policy of government neutrality on firms of varying size is needed. But, because of discriminations which already exist which favor large firms over small firms, special small business programs may be necessary to provide an equitable policy base. Unfortunately, programs designed to benefit all business, like the investment tax credit, tend to primarily benefit larger firms (Berney, 1979). This is the case for two reasons. First, there is a basic difference in production relationships: large firms tend to be more capital intensive and small firms more labor intensive. Second, the more complex a rule or regulation, the more costly it is for small business to use it. Consequently, even the employment tax credit, which should benefit the small firm is not used by them. Instead, it tends more to benefit the larger firm. Neutrality, as a governmental policy, would appear to demand different treatment for firms of varying size. As an example, the “regulatory flexibility” concept applies different standards to different sized firms so that the burden of regulation is more equitably distributed. The concept of encouraging or requiring financial institutions and other lenders to establish “dual prime rates” is a further example. Since small firms appear to have much higher debt to equity ratios and rely more heavily on shorter-term bank credit, they are more heavily burdened by a tight money policy which forces increases of interest rates. Thus, dual prime rates help to spread the burden of rising interest costs more equally. As many people prefer to work for themselves, equalizing the burden of government policy could only serve to increase the basic growth rate for small business, thus providing an easier start for entrepreneurs and would encourage a more rapid rate of economic growth. None of these discussions, however, argues that small business should be protected from failure. The more efficient firms will succeed and prosper, and the least efficient will not. Many currently successful entrepreneurs learn how to improve their production processes or managerial skills from their failures. What is being recommended as a first step is that government should concentrate on equalizing burdens and benefits in order to achieve true neutrality. If private economies of scale do indeed exist, new firms must grow to survive; what the government should not create are artificial economies of scale with public policy. A strong argument for further action can also be made: it appears that significant external benefits are produced by an economic system with a dynamic small business sector. Since these benefits go to society as a whole rather than entrepreneurs alone in the form of increased profits, a freely operating market without government assistance does not generate as many new small businesses as would be optimal for our society. To internalize the benefits that come from small business, governmental programs need to be devised to increase the rate of return on new, innovative small businesses. Should this happen, we could then anticipate increased rapid rates of innovation and technological change, more rapid rates of employment growth, expanded price competition in all sectors of the economy, and improved export capabilities, in short, true flexibility in our capitalistic system.     

GAS LIQUID CHROMATOGRAPHIC ANALYSIS OF FATTY ACIDS IN FOOD RESIDUES FROM CERAMICS FOUND IN THE SOUTHWESTERN CAPE,SOUTH AFRICA

Gas liquid chromatography was used to analyse residues adhering to the inside of excavated potsherds from dated South African sites. The results suggested marine animal fat, possibly seal, had been cooked in the vessels. Fat of modern seals was baked and also analysed as a control sample. This gave similar results. The importance of seals in the prehistoric diet of the Southwestern Cape is supported by a large number of seal bones in the associated faunal material.     

Australian liberalism and corporatism

George Brandis, Tom Harley and Don Markwell (eds), Liberals face the Future: Essays on Australian Liberalism, Melbourne, Oxford University Press, 1984, pp. 386, $14.99 (paper) and Katharine West, The Revolution in Australian Politics, Melbourne, Penguin Books, 1984, pp. 116, $4.95 (paper).

John Rickard, H.B. Higgins: the rebel as judge. Sydney, Allen & Unwin, 1984, pp.350. $29.95 (cloth).

Stuart Macintyre, Militant: the life and times of Paddy Troy, Sydney, Allen & Unwin, 1984, pp.225. $19.95 (cloth), $9.95 (paper).

Alan Metcalfe, In Their Own Right: The Rise to Power of Joh's Nationals, St. Lucia, University of Queensland Press, 1984, pp.268. $20.00 (cloth)

Peter Love. Labour and the Money Power: Australian Labour Populism 1890–1950, Melbourne University Press, 1984, pp.240. $9.95 (paper).

L.F. Crisp, George Houston Reid: Federation Father; Federal Failure? Canberra, ANU, 1979; The Later Australian Federation Movement 1883–1901: Outline and Bibliography, 1979; George Richard Dibbs: Premier of New South Wales, Prophet of Unification, 1980; Federation Prophets Without Honour: A.B. Piddington, Tom Price, H.B.Higgins, 1980; The Unrelenting Penance of Federalist Isaac Isaacs, 1897–1947, 1981; Charles Cameron Kingston: Radical Federationist, 1984.

Philip Toyne and Daniel Vachon, Growing Up the Country: The Pitjantjatjara struggle for their land, Melbourne, Penguin Books and McPhee Gribble, 1984, pp.157. $6.95 (paper)

Jim Kemeny, The Great Australian Nightmare, Melbourne, Georgian House, 1983, pp. 130. $14.95 (paper).

Peter Sekuless, The Lobbyists, Sydney, Allen & Unwin, 1984, pp. 145. $14.95 (paper).

Jennifer Aldred (ed.), Industrial Confrontation, Sydney, Allen and Unwin and Australian Institute‐of Political Science, 1984, pp.111. $15.95 (cloth), $7.95 (paper).

Glenn Withers (ed.), Bigger or Smaller Government? Papers from the sixth symposium of the Academy of the Social Sciences in Australia, 1982, Canberra, Academy of the Social Sciences in Australia, 1983, pp. ix, 115. $8.50 (paper)

Commonwealth Grants Commission, Equity in Diversity: Fifty Years of the Commonwealth Grants Commission, Canberra, Australian Government Publishing Service, 1983, pp. 180. $15.60 (cloth), $9.90 (paper).

Robin Walker, Under Fire: A History of Tobacco Smoking in Australia, Melbourne, Melbourne University Press, pp. 155. $19.50 (cloth).1

Hugh Saddler, Energy in Australia: Politics and Economics, Sydney, Allen and Unwin,1981, pp.205. $7.95 (paper)

Brian Kennedy, A Tale of Two Mining Cities: Johannesburg and Broken Hill 1885–1925, Melbourne, Melbourne University Press, 1984, pp. 146. $25.00 (cloth)

Basile Kerblay, Modern Soviet Society, London, Methuen, 1983, pp.321. $37.50 (cloth), $23.95 (paper).

Gary Littlejohn, A Sociology ofthe Soviet Union, London, Macmillan, 1984, pp.286. $16.95 (paper).

Talal Asad and Roger Owen (eds), Sociology of “Developing Societies”: The Middle East, London, Macmillan, 1983, pp.264. $11.95 (paper).

Richard Mulgan, Democracy and Power in New Zealand: a study of New Zealand politics, Auckland, Oxford University Press, 1984, pp.171. $A12.99 (paper)

Rex Mortimer, Stubborn Survivors, ed. H. Feith and R. Tiffen, Monash Papers on South East Asia No. 10, 1984, pp.xvii, 180. $6.00 (paper).

Philip Lowe and Jane Goyder, Environmental Groups in Politics, London, Allen and Unwin, 1983, pp. 208. $18.95 (paper)

John Surrey (ed.), The Urban Transportation of Irradiated Fuel, London, Macmillan, 1984, pp. 336. $14.95 (paper)

Ian Hancock, White Liberals, Moderates and Radicals in Rhodesia 1953–1980, London and Sydney, Croom Helm, 1984, pp.230. $31.95 (cloth).

Peter Hain, Political Trials in Britain, London, Allen Lane, 1984. pp 318. $29.95 (cloth).

Anthony Hyman, Afghanistan Under Soviet Domination, 1964–1983, London, Macmillan, 1984, pp. 235. $18.95 (paper).

Ivor Crewe and Anthony Fox, British Parliamentary Constituencies: A Statistical Compendium, London, Faber and Faber, 1984, pp.397. $67.95 (cloth).

Frederick C. Teiwes, Leadership, Legitimacy, and Conflict in China: From a Charismatic Mao to the Politics of Succession, London, Macmillan, 1984, pp.167. $21.95 (paper)

John Wong, The Political Economy of China's Changing Relations with Southeast Asia, London, Macmillan, 1984, pp.246. $14.95 (paper)

Adrian Leftwich (ed.), What is Politics? The Activity and its Study, Oxford, Basil Blackwell, 1984, pp. 172. $25.00 (cloth), $11.95 (paper).

Ted Benton, The Rise and Fall of Structural Marxism: Althusser and his Influence, London, Macmillan, 1984, pp. 259. $14.95 (paper).

Ben Fine, Marx's Capital, London, Macmillan, second edition, 1984, pp. 87. $9.95 (paper).

Stefan Collini, Donald Winch and John Burrow, That Noble Science of Politics: A Study in Nineteenth‐Century Intellectual History, Cambridge University Press, 1983, pp. 385. $25.00 (paper).

William W. Bostock, Approaches to Political Explanation, Melbourne, RDI Press, 1983, pp.123. $9.00 (paper).

Ronald Beiner, Political Judgment, London, Methuen, 1983, pp. 199. $17.95 (paper).

John F. Wilson, The Politics of Moderation: An Interpretation of Plato's Republic, New York, University of America Press, 1984, pp.213. $12.25 (U.S.) (paper).

Aristotle, The Athenian Constitution, trans. P.J. Rhodes, Penguin Books, 1984, pp. 198. $6.95 (paper).

Carol O'Donnell, The Basis of the Bargain: Gender, Schooling and Jobs, Sydney, Allen and Unwin, 1984, pp.186. $19.95 (cloth), $9.95 (paper).

Dorothy H. Broom (ed.), Unfinished Business: Social Justice for Women in Australia, Sydney, Allen and Unwin, 1984, pp.213. $24.95 (cloth), $10.95 (paper).

S. Fabian and M. Loh, The Changemakers: Ten Significant Australian Women. Milton, Jacaranda Press, 1983, pp. 190. $14.25 (paper).