I chose Firkin’s (2001b) model of entrepreneurial capital as the key framework for analysis. The key strengths of the model, as I experienced them in relation to this study are documented below along with details of modifications considered necessary for this research project.
I found the key strength of Firkin’s model to be its capacity to accommodate a holistic approach to analysis. Specifically the model enabled personal and work lives to be considered seamlessly. This was particularly necessary given the SME context in which participants drew on the entrepreneurial capital resources embedded within both family and business oriented networks. It facilitated consideration of capital forms or deficits outside those traditionally considered by economic analysis, for example, cultural and social capital. In turn, evidence was produced indicating that these forms do, in fact,
influence performance of the compliance task and as such, consideration of them within the compliance policy development process is warranted.
Originally intended for application to the entrepreneurial task as a whole, this model has proved useful in analysing resource application to sub-sets of the entrepreneurial task - in this case the compliance responsibilities associated with a business. It would appear the approach would be equally applicable to the study of other components of the entrepreneurial task such as marketing, entering export markets, or human resource management. Application of a similar framework of analysis to research in these areas is likely to facilitate theory development and the assessment of specific interventions on the overall entrepreneurial task of SMEs.
Some modifications were made to Firkin’s model to accommodate the forms of capital identified during the analysis stage. The most significant was the development and introduction of a new concept to recognise the pivotal role of potentially, productive time as an entrepreneurial resource. I chose the term ‘temporal capital’ to describe this capital form which was used as a working concept in this research project. The notion of temporal capital warrants further development. It requires rigorous testing to determine its theoretical validity and usefulness. It could potentially be applied broadly within economics, management and the social sciences.
In addition to this, the character of capital forms have been refined by adding descriptors where appropriate; specifically atrophied capital, latent capital, emergent capital and complementary capital. Use of these terms more accurately identifies the ease with which a resource may be applied and the likely returns attached to utilising it. The terms also suggest strategies that could be used to improve the value of entrepreneurial capital present within the SME owner’s network. Identification of cases where complementary capital is required alerts those responsible for implementing or enforcing the policy that effective compliance will involve more than simply educating one person.
The application of Bourdieu’s notion of capital conversion27 during the coding process revealed not only the presence of capital conversion activity but distinct patterns in
capital use and conversion. The patterns I identified included singular and concurrent capital use, linear capital conversions, and positive and negative capital conversion cycles. Given the sample size in this project, application of such conversion coding in future research could assist in verifying whether these patterns exist in a wider context and what the implications of these patterns for planned interventions in other contexts might be.
There is potential to apply Firkin’s model and the study of capital conversion patterns to other fields of research. For example, I consider this model is appropriate for application to poverty and welfare issues where deficits in human, social, cultural, temporal or economic capital often prevent conversion of existing resources into more desirable forms. The application of Firkin’s framework to individual cases would identify not only the relevant deficits, but the factors required to address them. For example, to access a route out of poverty a ‘catalyst’ form of capital may be required to facilitate the conversion of other forms of capital to which the individual has access. Alternatively the capital deficits driving a negative conversion cycle can be identified and appropriate interventions developed. The study of the interaction between individual and institutional capital as discussed in Chapter Six, also has parallel applications to the field of welfare. Although such scenarios closely resemble work already occurring in this area, it would be interesting to see whether exploratory research applying Firkin’s model to the analysis of these issues and cases would offer new insights.
Finally, there is potential for further research, based on this model, to be undertaken in other countries to determine whether SMEs of comparable size operate in a similar manner. This would provide greater insight into whether New Zealand SMEs employ compliance-related entrepreneurial capital in ways distinct to our economy and culture or whether the approach taken is simply a function of their size. This knowledge would assist policy makers in determining the appropriateness of adopting approaches used elsewhere.