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.     

Living on the Edge? Transformation of a Marginal Pleistocene Landscape Into a Settlement Area in the Northeastern Part of the Netherlands

ABSTRACT

This paper will examine settlement location during the Iron Age in the northeast part of the Netherlands, an area shaped by Pleistocene geology. In recent years, a number of Late Iron Age/Early Roman settlements situated on the low lying slopes of sand ridges and nearby stream ridges revealed traces of an earlier Iron Age occupation. Palynological data revealed that this part of the landscape was used by humans before it was transformed into an area of settlement. An analysis of excavation data from two key sites at Denekamp-De Borchert and Groningen-Helpermaar, as well as other known sites, lead to the conclusion that the transformation of ‘peripheral landscapes’ into permanent settlement locations was preceded by a phase of arable cultivation which left no trace of permanent habitation. It is also suggested that the impact of human behaviour on the natural landscape in the Early and Middle Iron Age was much bigger than previously anticipated. When excavating this type of settlement areas dating to the Late Iron Age, archaeologists must be aware that only of a small group of archaeological features exist. The proposed model for the choice of settlement location may be more widespread, because of similarities in landscape between the study area presented here and other landscapes in Northwest-Europe (e.g. parts of Germany and Denmark).     

Exploratory Models in a time of Big Data

This paper aims to trigger discourse about the emergence of a new type of social scientific model — Exploratory Models — which draw on Big Data, computer modeling and interdisciplinary research to tackle complex social scientific processes. First, we define Exploratory Models referring to Batty and Morgan and Morrison. We then present changes to the traditional modeling paradigm. We show how Exploratory Models circumvent challenges related to the idiosyncracy, self-reflexivity and acceleration of social phenomena, which limit predictive effectiveness of traditional models. We show that Exploratory Models are better equipped to tackle complex problems due to their capacity to process heterogeneous datasets. Having established that Exploratory Models are predominantly problem- and data-driven, we emphasize that scientific theory is indispensable to their progress. Finally, the development of an integrative platform is suggested as a way of maximizing the benefits of this approach. Discussion concludes by flagging areas for further research.     

An overview of bitumen trade in the Near East from the Neolithic (c.8000 BC) to the early Islamic period

The aim of the paper is to summarise the present state of knowledge concerning bitumen trade in the Near East from the Palaeolithic (70,000 BP) to the Early Islamic period. During the Palaeolithic and Early Neolithic period, bitumen utilisation was mostly concentrated in settlements close to oil seeps. From the Ubaid 3 period, bitumen from the Mosul area became more important and was traded as far as the southern Persian Gulf. The Uruk period is a turning point for Mesopotamian history as settlements evolved into city‐states. These cities had a great need for raw materials, and this marks the beginning of large‐scale exploitation of Hit bitumen. This bitumen was traded at settlements along the Euphrates, where a large trade network was established. Hit bitumen entered the Persian Gulf at the turn of the second millennium (Dilmun period). Bitumen from Iraq (Mosul and Hit) became predominantly used in most settlements along the southern coast of the Gulf. During this period Iranian bitumen was also exported and this supply tended to increase, especially during the Partho‐Sasanian period. Dead Sea bitumen had its own exchange network, which was concentrated across present‐day Israel and Egypt where it was extensively used for mummification.     

Social Dynamics and Pottery Distribution in the Faro Department, Northern Cameroon

Ethnoarchaeological studies have constantly emphasized the complexity of pottery distribution and its close ties with other aspects of social life. It is argued here that, among the Dowayo of northern Cameroon, pottery exchange is not regulated by preferential economic relationships between producers and consumers but rather by mechanisms such as fashion or the reputation of the artisans.De récentes études ethnoarchéologiques ont constamment mis en avant la complexité des processus de distribution de la poterie et les liens étroits que ceux-ci entretiennent avec les autres aspects de la vie sociale. Il est démontré dans cet article que, chez les Dowayo du Nord-Cameroun, les échanges de poterie sont structurés par une absence de lien privilégié entre producteurs et consommateurs et sont dès lors régulés par des mécanismes tels que la mode ou la réputation des artisans.     

Carnelian,agate, and other types of chalcedony: the prehistory of Jebel al‐Ma'taradh and its semi‐precious stones,Emirate of Ra's al‐Khaimah

The Jebel al‐Ma'taradh and its surroundings contain exceptional deposits of lithic raw materials, including flint and chert, but especially chalcedony, agate, carnelian, and chrysoprase. These deposits were intensively exploited during the Neolithic, and some of the artefacts produced entered the trade network that included settlements on the coast and inland, sometimes as far as 300 km. During earlier periods, probably as early as the Pleistocene, only flint was used. Between the sixth and the fourth millennia, carnelian and agate were exploited to make beads, which are found in the necropolises and settlements of the UAE.