SMEs as the Unknown Stakeholder: Entrepreneurship in the Political Arena

225 Pages·2013·1.96 MB·English

by  Massimiliano Di Bitetto

SMEs as the Unknown Stakeholder
‘“SME” (self-employed and micro-enterprise) workers are the backbones of
the private sectors in most developed economies around the world. Small
businesses are where most jobs are created and where innovative ideas and
products are first discovered, after all. It is only when the fruits of such
creativity are carried to commercial success that large business enterprises
take center stage. But because small firms (and their employees) are, owing
to Mancur Olson’s logic of collective action, “latent” groups in the political
process, large corporations and organized labor unions almost always are
decisive in determining public policies, SMEs frequently find themselves at
significant competitive disadvantage relative to their larger rivals. In SMEs as
the Unknown Stakeholder, Massimiliano Di Bitetto, Gianmarco Gilardoni and
Paolo D’Anselmi assemble a very readable collection of essays that identify
“best practices” for fostering the development of SMEs in eight European
countries. It is must reading for students of the political process, for anyone
interested in promoting global economic growth and, most especially, for
public policymakers.’ — William F. Shughart II, Utah State University
‘This book’s intriguing title leads to even more intriguing questions – and
they are big questions at that. Who is the ”unknown stakeholder” of that
title, which also alludes to the critical concepts of entrepreneurship and
politics? Editors Di Bitetto, Gilardoni and D’Anselmi have recruited contribu-
tors from throughout Europe to answer these questions as they relate to the
self-employed and workers in small, medium, and even micro-enterprises.
We ignore these constituencies of corporations and governments at our peril.
With cases from, inter alia, Bulgaria, Spain, Poland, Slovakia, Greece, and of
course Italy, the book is timely. With theoretical concepts taken from such
luminaries as Michael Porter on collaborative advantage, it is also timeless.
It poses these additional (often ignored but vital) quandaries: What is the
nature of self-employed work and entrepreneurship, within which are rep-
resented both those who are rich and many who are poor? Do the goals of
CSR programs differ between corporations and SMEs? Is responsibility toward
community and even the state different for the micro-enterprise than for the
large organization? What role, if any, can representing the interests of the
self-employed and workers in micro-enterprise play in economic develop-
ment? What best practices lead to collaboration among all sectors of society?
(Hint: Neither tighter nor looser regulation is the answer.) Finally, how can
we bring the marginalized worker toward society’s center of accountability,
responsibility, political action, productivity, and economic growth? Read this
book!’ — Larissa Grunig, University of Maryland
‘Readers across the political spectrum will find interesting and useful ideas
in this broad and well-documented volume. It provides information and
insights that define and describe current and prospective roles in the social
realm of the self-employed and small enterprises. Drawing from a wide range
of European experiences and best practices, and pointing to leverageable
values, the book articulates a combination of accountability and social pro-
ductivity as avenues of multi-faceted collaboration among society’s sectors. It
unmasks society’s “unknown stakeholders”’. — Stephen A. Greyser, Harvard
Business School
Also by Paolo D’Anselmi
VALUES AND STAKEHOLDERS IN AN ERA OF SOCIAL RESPONSIBILITY:
Cut- Throat Competition?
SMEs as the Unknown
Stakeholder
Entrepreneurship in the Political Arena
Edited by
Massimiliano Di Bitetto
National Research Council (CNR), Italy
Gianmarco Gilardoni
Cisl (Italian Federation of Labour Unions)
and
Paolo D’Anselmi
University of Rome Tor Vergata, Italy
Selection and editorial content © Massimiliano Di Bitetto,
Gianmarco Gilardoni and Paolo D’Anselmi 2013
Individual chapters © contributors 2013
Foreword © Lez Michael R ayman-B acchus 2013
Foreword © Jacob Dahl Rendtorff 2013
Softcover reprint of the hardcover 1st edition 2013 978-1-137-33119-9
All rights reserved. No reproduction, copy or transmission of this
publication may be made without written permission.
No portion of this publication may be reproduced, copied or transmitted
save with written permission or in accordance with the provisions of the
Copyright, Designs and Patents Act 1988, or under the terms of any licence
permitting limited copying issued by the Copyright Licensing Agency,
Saffron House, 6–10 Kirby Street, London EC1N 8TS.
Any person who does any unauthorized act in relation to this publication
may be liable to criminal prosecution and civil claims for damages.
The authors have asserted their rights to be identified as the authors of
this work in accordance with the Copyright, Designs and Patents Act 1988.
First published 2013 by
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the United Kingdom, Europe and other countries.
ISBN 978-1-349-46128-8 ISBN 978-1-137-33120-5 (eBook)
DOI 10.1057/9781137331205
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Contents
List of Figures and Tables xiii
Foreword by Lez Rayman-Bacchus xv
Foreword by Jacob Dahl Rendtorff xxii
Acknowledgments xxviii
Notes on the Contributors xxx
List of Abbreviations xxxiii
Introduction 1
Massimiliano Di Bitetto, Gianmarco Gilardoni and
Paolo D’Anselmi
Representation in Europe: MSMEs and the self-employed 1
Towards an ecology of industrial relations: analysis
of best practice 2
Amending Michael Porter’s theory: collaborative
advantage 2
Representation does not look at society as a whole 3
The silent class struggle: micro- enterprise as the
unknown stakeholder 4
New representation: collaboration between all
sectors of society 5
PART I THE ORDINARY WORLD OF TRADE UNIONS
1 The S elf- Employed as the Unknown Worker 9
Massimiliano Di Bitetto, Gianmarco Gilardoni and
Paolo D’Anselmi
1.1 The marginal status of SMEs in the social dialogue 9
1.2 The non sequitur of current trade union policy:
between goal and tactics 10
1.2.1 The Eurofound study 10
1.2.2 The ultimate goal of representation:
economic growth 11
1.2.3 The tactics of representation: pay and benefits 12
v
vi Contents
1.3 In search of a link 14
1.3.1 The research question: beyond administration 14
1.3.2 Methodology: top- down – statistics and theory;
bottom- up – cases of best practice 15
1.3.3 Procedure 16
1.3.4 Added value 16
1.4 The difficult divide between micro-employers and the
self- employed: statistics show large numbers of workers
(Salvatore Pettineo) 17
1.4.1 Range of observation/statistics 17
1.4.2 Looking at the total workforce 18
1.4.3 The difficult divide between employees 19
1.4.4 The legal basis of s elf- employment in Europe 21
PART II BEST PRACTICE FROM THE FIELD
2 Legal Status and Working Conditions of S elf- Employed
Persons in Bulgaria 29
Vesselin Mitov
2.1 Main characteristics of self- employment in Bulgaria 29
2.2 Main characteristics of the self- employed in
Bulgaria 30
2.3 Legal status of the self- employed in Bulgaria 32
2.4 The insurer 34
2.5 The self- employed individual 34
2.6 Registering as a self- employed person 35
2.7 The working conditions of the self-employed 36
2.8 Self- employment and informal employment
in Bulgaria 39
2.9 Self- employment and informal employment
in the tourism sector 40
2.10 Conclusions 42
3 Three Layers Across the Board in France 43
Laurent Labrot
4 Lawyers and Engineers in Greece 46
Sofia Lampousaki
4.1 Defining the problem 46
4.1.1 The case of lawyers 46
4.1.2 The case of engineers 47
Contents vii
4.2 General aims of the study 48
4.3 Quality and innovation of process or product 49
4.3.1 The case of lawyers 49
4.3.2 The case of engineers 50
4.4 Transferability and multiplier effect 51
5 Tax Simplification in Hungary 53
Boglárka Bata
6 Upstream Negotiation of Newspaper Vendors in Italy 56
Gianmarco Gilardoni
6.1 Project design and implementation 56
6.1.1 Defining the problem 56
6.1.2 General aims of the study 56
6.1.3 Expected results 57
6.1.4 Activities 57
6.1.5 Communicating results 58
6.2 Quality and innovativeness of process or product 58
6.2.1 Process and product 58
6.2.2 Organization and management of resources 59
6.2.3 Partnerships 59
6.2.4 Relationships with recipients and contacts 59
6.2.5 Monitoring, evaluation and communication 59
6.3 Transferability and multiplier effect 59
6.3.1 Reproducing best practice to deal with
similar problems 59
6.3.2 Using best practice as a model for different
problems or situations 60
7 Taxi Deregulation in Poland 61
Robert Geisler
7.1 Introduction 61
7.2 The Polish context 62
7.3 T he legal definition of self- employment
in Poland 65
7.4 Pros and cons of s elf- employment in Poland 65
7.5 Do the self- employed in Poland take part in the
social dialogue? 68
7.6 Best practice in representation of the self-employed 71
7.7 Good practice – leadership and representation 73
viii Contents
7.8 Analysis of good practice 75
7.8.1 Step one: the logic of action 75
7.8.2 Step two: quality and innovation of
the process 76
7.8.3 Step three: a multiplier effect and the
transfer of experience 77
7.9 Conclusions 77
8 Emerging Farmers’ Markets in Slovakia 79
Laura Dittel and Peter Džupka
8.1 Introduction – defining the problem 79
8.2 What has happened in Slovakia – activities at the
EU and national levels 79
8.3 Results and good practice in Slovakia 80
8.3.1 Farmers on the Internet 80
8.3.2 BIO for you (Bratislava) 81
8.3.3 LETS (Local Exchange Trading System)
family farm 81
8.3.4 Local food community Zvolen 81
9 The Legal Status of the Self- Employed in Spain 82
Alexis Serra Rovira
9.1 Project design and implementation 82
9.1.1 Introduction to the LETA 82
9.1.2 Content 83
9.1.3 Other rights 85
9.2 Quality and innovativeness of the process
or product 86
9.2.1 Purpose of protection 87
9.2.2 Extent of protection 87
9.2.3 What is covered 87
9.2.4 Jurisdiction 87
9.2.5 Eligibility criteria 87
9.2.6 Exclusions 88
9.2.7 Duration of economic benefit 88
9.2.8 Amount of financial benefit for cessation
of activity 88
9.2.9 Obligations of the self-employed 88
9.3 Multiplier effect and transferability 89
Contents ix
PART III LEARNING FROM EXPERIENCE
10 Towards an Ecology of Industrial Relations 93
Massimiliano Di Bitetto, Gianmarco Gilardoni
and Paolo D’Anselmi
10.1 Analysis of best practice cases 93
10.1.1 Dissecting best practice: the
components of representation 93
10.1.2 Understanding the country cases
through an analytic framework 94
10.2 Discussion of country cases 94
10.2.1 Grey tourism in Bulgaria 94
10.2.2 The three layers across the board
in France 95
10.2.3 Lawyers and engineers in Greece 95
10.2.4 Tax simplification in Hungary 95
10.2.5 Upstream negotiation in Italy 96
10.2.6 Taxi deregulation in Poland 96
10.2.7 Emerging farmers’ markets
in Slovakia 96
10.2.8 A legal status for the s elf- employed
in Spain 97
10.3 Conclusions 97
10.3.1 Awareness of public
administration 98
10.3.2 Highlighting private parties
to negotiations 98
10.3.3 Learning from experience 99
10.3.4 Questions 100
10.4 Rules, rules, rules: where is the work? 101
10.4.1 Critique of mainstream thinking 102
10.4.2 Winning a battle with government 102
10.4.3 The broken triangle of governance 102
10.4.4 Stakeholder analysis 103
10.4.5 Top- down critique 104
10.5 A theory of change 104
10.5.1 Representation – negotiation point
versus goal 105
10.5.2 The economy as a soufflé 105