ABSTRACT
Part 6 of this book, of which this is the first chapter, is concerned with the flexibility of the small firm. Flexibility has already been looked at, especially in terms of control of the wage bill, e.g. by changing the ratio of part-time to full-time workers, in Chapters 4, 5, 7 and 11. Supporting literature, confirming this flexibility for small firms, includes Simmons (2001) and Ndimande (2000). This flexibility, if it exists, is not considered as a virtue in itself, but rather as a useful attribute, which should have positive implications for growth and performance (of which survival is one aspect). The three following chapters consider flexibility from three standpoints. First (Chapter 16), flexibility is looked at in terms of the ability to increase or decrease firm size towards an optimal small firm size (in relation to factors of production, technology and market opportunities). Second (Chapter 17), flexibility is looked at in terms of the market extent that the small firm is able to exploit, be it local, national or international. Third (Chapter 18) flexibility is looked at in terms of speed of adaptation to the turbulent conditions (Beesley and Hamilton, 1984; Markusen and Teitz, 1985), which a small firm may encounter. This chapter is a peparatory, in that it considers key concepts and definitions, and introduces the basis of analysis in each of the three subsequent chapters.
