On 10 April EPRC hosted a presentation by Professor Simon Down, Director of the Institute for International Management Practice (IIMP), at Anglia Ruskin University Cambridge. Simon presented the findings of ESRC-funded research into the attitudes and adaptations evidenced by small and medium sized enterprises (SMEs) when faced with regulatory requirements.
The study was based on interviews with multiple SMEs over an extended period. Key findings are that whilst regulation does mean higher direct and administrative compliance costs, and attracts near universal condemnation, it is often accepted as a necessary part of doing business, can enable as well as constrain, and is not a deterministic factor in constraining firm performance and growth. Particular determinants of strategic response include the specificity of regulations to particular industries, their timescales, and the efficiency of implementation by policymakers.
These insights allow a better understanding of the dynamics of formality and informality in SMEs. The presentation slides of the seminar are available here.
