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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:Concentration, Competition Policy and the Role of Small and Medium-Sized Enterprises in South Africa's Industrial Development
Authors:Kaplinsky, RaphaelISNI
Manning, Claudia
Periodical:Journal of Development Studies
Geographic term:South Africa
Subjects:economic concentration
small-scale industry
furniture industry
Development and Technology
Economics and Trade
External link:https://doi.org/10.1080/00220389808422558
Abstract:It is widely recognized that the prospects of small and medium-sized enterprises (SMEs) are affected by the degree of industrial concentration. Invariably concentration measures are determined for an industry (market structure) to assess whether this affects market behaviour and hence the market performance of different sized firms. This paper presents the results of an analysis of South Africa's wood furniture industry, based on a survey of 50 furniture enterprises in Gauteng Province carried out in 1994-1995. Section 2 plots the dimensions of ownership and plant concentration in South Africa. Section 3 focuses on concentration in the South African furniture industry. Section 4 examines the determinants of concentration in the furniture industry, pointing to the importance of the link between the retail sector and the producing sector, as well as that between the retail and the financial sectors. The analysis shows that intra-industry concentration plays little role in explaining the poor performance of SMEs. Instead, it is concentration in the furniture retailing industry which primarily affects their relatively adverse performance. The paper concludes with a discussion of the implications this sectoral study has for concentration policy, and for policies designed to assist the promotion of SMEs in South Africa. Bibliogr., notes, ref., sum.