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Emergence of clusters through SME involvement
Sivaram Vemuri
Associate Professor of Economics
School of Law and Business
Faculty of Law, Business and Arts
Charles Darwin University
Darwin, NT 0909
Australia
Phone: +61-8-8946-6087
Fax:
+61-8-8946-6777
Email: ram.vemuri@cdu.edu.au
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Emergence of Clusters Through SME Involvement
ABSTRACT
Purpose From literature review and focus group discussions the aim is to understand the process
by which clusters come into existence. The conceptualization of this inquiry is to get an
appreciation of the endogenous process of how local firms agglomerate, change and fuel
economic activity.
Design/methodology/approach The starting point of the inquiry is not a measurement of
metamorphosis of the firms under investigation based on product life-cycle models but adopting
a combination of recognizing capabilities, incentives and opportunities by those that have
decision-making responsibilities in the firm face. It adopts a Resource Based View of the firms
and reviews cluster formation as a strategic decision by entrepreneurs when managing value
chains.
Data/findings Analysis is based on material collected from 10 focus group discussions, each
involving 15 SME from the Northern Territory of Australia. Data is collected from focus group
discussions to (1) identify activities that led to decisions for establishing the firms in the first
place; (2) explore growth potentials of firms; (3) examine forces influencing their growth; (4)
specify internal endogenous entrepreneurial processes; and (5) evaluate the ‘triggering’ and or
‘preventing’ factors for cluster emergence.
Value This paper provides evidence for cluster genesis.
Keywords Small to medium enterprises, cluster genesis, business strategy
Paper type Research paper
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INTRODUCTION
Government development strategies have one common theme—namely to unleash regional
economic potential through increases in private sector participation by transforming regions to
‘entrepreneurial society’ (Acs & Audretsch, 2003). The underlying premise for such attempts is
that entrepreneurs are considered an essential feature of market economies (Kirzner, 1973). A
number of studies (Reynolds et al, 2000; Certo et al, 2001; Ireland et al, 2001) support the view
that entrepreneurial activity is important for sustained economic development. Others recognize
the importance of strategic management for superior firm performance (Ireland et al, 2003).
There is an emerging view that small to medium businesses have organizational skins that are
necessary for regional development. These organizations have formally defined and recognizable
structures that have a distinct approach to perform tasks and deal with external environments in
which they operate (Etizioni, 1964). The tasks they perform mainly focus on identification of
sources of growth, creating knowledge that uses entrepreneurial acumen to devise strategies for
achieving sustainable profits. It is these very features that make them the target of regional policy
analysts.
Where there are no recognizable entrepreneurs in the regional economies, the challenge in
transforming regional spaces into entrepreneurial societies requires concerted effort and attempts
are made for strategic decisions by all levels of governments that are responsible for these
regions. Most governments attempt to follow what Nelson & Winter (1982) refer to as ‘recipes’
by applying knowledge from other regions, building on commercial discoveries that are region
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specific and create new industry conglomerations. Strategically they emulate successful clusters
and look for a ‘list of ingredients’ that have worked elsewhere.
Policy formulation for emergence of clusters is not a straight forward task. The process of cluster
formation is rather complex and hampered by many issues. There is confusion about the role of
governments (Storey, 1994; Hjalmarsson, 1998). There are also issues about what type of person
in the society can be regarded as an entrepreneur. Other issues that one needs to consider are
whether entrepreneurs exhibit similar features irrespective of location, culture, firm size and
industry. All these complexities suggest that in understanding cluster formation there is a need to
take heed from Lindblom (1959) that policy for to be successful it must proceed through a
‘succession of incremental changes’. To accomplish this, one needs to work with what exists on
the ground. This requires an understanding of entrepreneurs, firms and their behaviors in the
landscape where cluster formation is being considered.
LITERATURE REVIEW
A number of entrepreneurial features have been identified that favor economic betterment at the
firm level. Effective entrepreneurs need to be exceptional learners (Smilor, 1997), must come
from diverse backgrounds (Cohen & Levinthal, 1990), possess accumulated ability to encourage
creativity and innovation (Shane & Venkatraman, 2000) and have prior start-up experience
(McGrath & Macmillan, 2000). Others suggest that entrepreneurs must have talent, temperament
and technique (Bolton & Thompson, 2000).
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There has been considerable discussion in the literature about various ways firms strategically
position themselves for generating maximum value. Bretherton and Chaston (2005) examined
‘the use of strategic alliances along the value chain, analyzing the reasons for their use,
managerial issues concerning them and their impact on sustainable competitive advantage’
(Bretherton & Chaston, 2005, 274). Such studies build on Porter (1980), Wernerfelt (1984),
Hansen & Wernerfelt (1989), Grant (1991) and others who highlight the importance of resources
available within organizations for achieving business success. While firm’s resources and
capabilities are important considerations for business successes, environmental features external
to businesses act both as a source and a sink for business actions. What one observes in reality
are “relations and exchanges between entrepreneurs, enterprises and the environment” (Boter &
Lundstrom, 2005, 246) and these interactions are a result of strategic actions in response to
effects caused by elements and processes prevalent in environments external to the firm. As a
result, operating environments reflect both internal and external forces that affect organizational
performance at the firm level and developmental achievements at the societal level.
Although many governments have turned their attention to small firms involving entrepreneurs
to promote development activities, there ‘is confusion about what governments should or should
not do to assist small business development (Storey, 1994; Hjalmarsson, 1998). One reason for
this confusion is the “lack of theory concerning small to medium enterprise (SME) policy
(Lundstrom et al, 1988; Gibb, 2000)”, as stated in Boter & Lundstrom, (2005, 246). Another
relates to a lack of clear theoretical understanding of business models per se. (Chesbrough &
Rosenbloom, 2002). There is no single theoretical model that encapsulates and allows for
quantification that tests the salient features of the business and allows potential investors to
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‘stress test’ the business assumptions ahead of the decision to invest (Rasmussen, 2007). This led
contributors to create an integrated model of value creation of the firm. This includes a
combination of “value chain analysis, Schumpeterian innovation, the resource based view of the
firm, strategic network theory and transaction cost economics” (Rasmussen, 2007, 2). In
addition, one should also take heed from Knight (1921) and take into consideration an essential
feature for transforming the society into an enterprising organization, namely, the role
uncertainty plays for firms to position themselves in the economic landscape.
Sustainable presence of the firm is only possible if wealth is created. One of the prerequisites of
wealth creation is that firms and the entrepreneurs continue to learn from their strategic choices.
As a result, for regional development to occur there is a need to establish a clear understanding
of strategic management choices that firms make to maintain sustainable competitive advantage.
A number of ways are presented in the literature to investigate links between strategic
entrepreneurial activity and growth of firms. One is to adopt an integrated approach to the
concept of strategic entrepreneurship (Yan & Hu, 2008). Another is to link creativity, innovation
and entrepreneurship (Bessant & Tidd, 2007). Then there is the examination of nascent
organizations (Baumol, 2002) that create disproportionate amounts of value.
The commonality among all these approaches is that they fundamentally are influenced in their
thinking from both the strategic as well as entrepreneurial literatures. The key therefore is to
combine beliefs and expectations of the individual entrepreneurs with organizational
achievements and work out the role that strategy plays in creating value. It is also necessary to
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acknowledge that involvement in clusters by firms is an entrepreneurial strategy that firms adopt
to increase value.
Formation of clusters therefore must be recognized as a “sequential process with an evolutionary
logic” (Feldman, 2001). What one observes in reality is outcomes of SME of the comprehensive
strategic positioning by firms to maximize value generation. Whether these outcomes are indeed
effective—or merely efficient—depends on a number of issues at the individual firm level.
Fundamental amongst these is the stage of the firm in the evolutionary path. Other aspects
influencing firms outcomes as a result of strategic thinking are competencies and capabilities of
businesses to define the brief and the problem, investigative abilities, the extent and degree of
flexibility at the disposal of the firm to consider potential alternative solutions, the decision
making ability of entrepreneurs, leaders and managers to choose a solution, and the opportunity
to test and evaluate actions. In short, what is needed is a resource based view of the firm (RBV).
A resource based view of the firm (RBV) is needed to help interpret formation of clusters as an
outcome of strategic entrepreneurship. “The key to a resource based approach to strategy
formulation is an understanding of the relationship between resources, capabilities, competitive
advantage and profitability” (Bretherton & Chaston, 2005, 277). As a result, to understand
cluster formation, one must rely on observations rather than theoretical positioning, which is the
method adopted in conducting this research.
The principal research question that is being investigated is how do clusters emerge in the
economic landscape?
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METHODOLOGY
Selection of appropriate methodology for investigation is based in terms of the issue under
investigation, the task at hand and the use of the findings. In the literature, cluster formation is
recognized not as a one off occurrence but as a series of sequences shaped by strategic decisions
as well as serendipity (Carlsson, 2007, 264). One of the primary reasons for investigation of
cluster formations is to promote regional development through public policy. As noted earlier,
public policy is best considered to be a “succession of incremental changes” (Lindblom, 1959,
86). Therefore there is a need to choose a methodology that not only facilitates in observing
firms behavior without much disturbance but also allows exploring the possibility of emergence
of clusters. It is for these reasons an exploratory research methodology is adopted to understand
emergence of clusters. Using the identifiers suggested by Bennett (1991) in classifying
management research, the exploratory methodology adopted in this paper will contribute towards
providing an explanation of how clusters emerge.
A focus group approach was adopted to collect information because this was considered to be
“most useful and appropriate in exploratory and development phases of research where little is
known about the phenomenon of interest” (Rao, 2002, 99). While focus groups provide insights
through synergistic interactions amongst the participants, there are certain drawbacks adopting
this approach. Principal among these are: incomplete information exchanges—especially when
discussing firm’s strategies in a group setting that involves competitors; group conformity to a
particular view; and, above all, lack of engagement in discussion. These complexities were
addressed through the method adopted in forming and conducting the focus groups.
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RBV was used as the framework for forming and conducting focus group discussions. Focus
groups were formed on a sector basis through local area knowledge of the firms operating in the
economic space. This enabled an expert from the area to provide historical context and
characteristic connectivity of participants and institutions alike. Such expert opinion was
considered of significant importance—especially in the context of the Northern Territory
(isolated communities and small number of firms in the economic environment)—for
understanding cluster formations through discussions in the focus group.
A modified focus group approach was adopted in conducting focus group discussions. The
identified focus group participants were sent a set of questions in advance. These were:
I. Identify 10 issues that you had to attend to in your work place last week.
II. Whom did you contact to discuss, deal and resolve these issues?
III. Are there any suggestions you would like to make to address these issues?
Discussion did not focus on strategy or issues or problems but on actual engagements to work
out whether there was a need for clusters to naturally emerge that will add to value creation of
the participating SME. As a result, focus group discussions were more related to people’s
reflections of need and action based on the three questions above, rather than issues or strategies
related explicitly to clusters. The method of conduct of focus group was based on a premise that
it is better to create opportunities for transparent engagement through discussions about creating
synergies rather than attempting to focus on industry conglomerations.
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Attempts were made to collect material from 10 focus group discussions each involving 15 SME.
Participation by senior representatives of 150 SME out of 267 was considered an adequate
sample to understand the underlying factors for formation of clusters. However, in total there
were only 60 SME that actually participated in this research.
Methodologically it was decided that in the context of cluster emergence it was imperative to
understand lack of participation. People who did not turn up to the focus groups were later
contacted to examine if they felt that value adding would not occur for their businesses if they
attended these meetings. Ninety per cent of the non-participants invited to join the focus groups
responded that they would have benefitted from participation but were unable to attend due to
work pressures.
RESULTS
The significance of operating environments has emerged as an important aspect in cluster
formation.
The economic environment faced by the firms in the region plays an influencing role. The region
in Australia where this study was conducted is Alice Springs. Both the Commonwealth and the
Northern Territory Governments recognize that Alice Springs is a great place to live, work and
raise a family. As the town develops and grows, there is a growing recognition of the need to
work closely with the people of the region to ensure that it retains its unique character and iconic
status among Australians.
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The underlying features of this economy, like everywhere else at a point in time, are a product of
its human and natural geography, its people, historical events and processes, and influences of
past policies and practices. Economic features of Alice Springs of today are a result of a
multitude of such influences. The economy embodies complexity and diversity despite—or
perhaps because of—its small population base, vast distances from any ports and being
surrounded by desert conditions. These very features make the economy of Alice Springs a
recipient economy of changes. In that sense, the economy largely reacts to changes at the
national, regional and international levels.
Demand drivers of the economy are household consumption driven by household expenditure,
Government operations, business investment due to high natural resource base surrounds (oil and
gas projects, minerals and metals projects, etc.) and ensuing exports. The strength of the
economy is in its ability to respond to change in any of the variables influencing the demand
drivers without adversely affecting the welfare of the people of Alice.
By virtue of its location and past developmental experiences, a unique economic system has
evolved that has inherent capabilities to cope with forces of change. These changes have
occurred over the years and in response to forces of influence generated internally, regionally,
nationally and internationally. The Alice Springs economy of today exhibits economic and
demographic features that are essentially responsive to changes. For an economy to be able to
withstand and to respond efficiently and effectively to different market stimulus and stresses
requires robust features both at micro as well as macro levels.
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At the micro level, when economic conditions deteriorate, either individuals work harder to
maintain their lifestyles or they rein in spending. In the case of Alice Springs, individuals facing
deteriorating economic conditions often leave for greener pastures. The only exceptions are the
Indigenous populations in the community. The ability of individuals to exercise freedom to exit
and enter the economy implies effective transmission of market signals to identify the absorptive
capacity. Potentially there is very little excess supply or demand for managers to deal with.
At a macro-economic level demand is tied to economic conditions, particularly in the industrial
sector. As a general rule, the cost of fuel at the international level will have a ripple effect on the
demand drivers at the local or regional level. As the cost of fuel increases, the cost of freight
follows suit, which in the turn adversely affects consumer demand for goods and services.
Interest rate rises also impact various industry sectors, predominantly construction, and often the
impact is felt on housing affordability. Housing affordability, in turn, is governed by supply of,
and demand for, jobs in Alice. Insofar as there are no massive excess supply and demand
conditions, factors underlying the economic cycle of Alice Springs generate automatic
transmission mechanisms for adjustments to occur. Such a scenario is only possible when
governmental intervention is either minimal or when government policy does not alter the
economic fundamentals and the structure of the economy significantly.
The sheer existence and simultaneous coexistence of international, national and local demand
drivers generate forces that enable learning to occur and contribute to the robustness of the
economy. Alice Springs continues to respond to the diversity of demand drivers. The inherent
features of the economy do not allow for responding to isolated drivers such as government
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policy initiatives or international market movements. The strength of the profile is its ability to
link and connect the demand drivers.
Alice Springs of 2009 portrays the features of a robust economy. Economic robustness implies
the ability to remain effective under different market conditions and is a testimony to successful
business practices. Alice Springs businesses have the ability to make the most of the limited
opportunities and portray adaptive strategies and respond to governments of all echelons as they
address inherent challenges that arise due to the features of a remote land-locked economy.
Nowhere is this more evident than in the observable trends in population and jobs in the town of
Alice Springs. There is evidence of a stable population, low unemployment rate, total labor force
participation, an increase in median age, and a decrease in the average household size, as well as
an increase in housing affordability that is in line with the increase in income levels. It also
exhibits an increase in Indigenous population.
The inherent feature of the Alice Springs economy is that any small change in income sources is
expected to generate a great impact. Diversity of income sources, therefore, is an asset for a
small economy like Alice Springs. Its economic activity is not tied to any one source of income.
There is a potential disadvantage that income from one source can be substituted from another.
In the case of the Alice Springs economy, there is no evidence of such a substitution—especially
because these income sources have distinct underlying bases. For example, income from tourism
expenditures has a separate economic base to the income of welfare recipients.
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Income fluctuations are an integral part of economic cycles. Therefore, they should not be seen
as a withdrawal of support from one sector of the economy. For an economy like Alice Springs,
income sources should be seen more as performing a ‘functional’ rather than a ‘strategic’ role.
For a small and remote land-locked economy, where small changes can cause great impacts, too
much of a targeted policy carries obvious risks that may generate long-run negative effects.
Businesses
There are 1,821 business in Alice Springs as at June 2007.
Industrial composition, industry turnover and employment size
The top five industries were property and business services (444), construction (378), retail trade
(294), transport and storage (129), finance and insurance (105). These industries accounted for
74 percent of total industries. Table 1 provides the full industry breakdown.
The majority of businesses were located in the $200k to <$500 turnover bracket. Figure 1
provides a summary of industry turnover.
The business landscape is dominated by non-employing business, micro and small. A nonemploying business is one without an active ITW role or which has not remitted ITW for five
consecutive quarters. Figure 2 shows the breakdown of Alice Springs businesses by employment
size while Table 2 breaks this information down by industry.
Business expectations
Three key aspects influence business expectations. They are: (a) previous business performance,
(b) future expectations, and (c) business confidence. The data presented is based on a survey
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conducted by DBERD in collaboration with Charles Darwin University (CDU) in November
2007. Business expectations varied depending on the size of the firm.
Small Business
Performance compared to 2006

61% increased their value of sales

69% increased their workforce

53% increased their wages bill

51% increased prices charged

44% increased profitability

43% increased capital expenditure
Expected performance in 2008

77% expect increase in their value of sales

60% expect increase in their workforce

55% expect increase in their wages bill

49% expect increase in their prices charged

63% expect increase in their profitability

35% expect increase in their capital expenditure
Medium Business
Performance compared to 2006

52% increased their value of sales

71% increased their workforce

68% increased their wages bill
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
55% increased prices charged

32% increased profitability

55% increased capital expenditure
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Expected performance in 2008

76% expect increase in their value of sales.

72% expect increase in their workforce

66% expect increase in their wages bill

45% expect increase in their prices charged

64% expect increase in their profitability

47% expect increase in their capital expenditure
Large Business
Performance compared to 2006

52% increased their value of sales.

71% increased their workforce

68% increased their wages bill

55% increased prices charged

32% increased profitability

55% increased capital expenditure
Expected performance in 2008

74% expect increase in their value of sales.

57% expect increase in their workforce

53% expect increase in their wages bill
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
41% expect increase in their prices charged

61% expect increase in their profitability

35% expect increase in their capital expenditure
Focus group participants face these economic imperatives. These operating environments that
were reported at the focus group meetings reflected both internal and external forces that affect
organizational performance at the firm level.
Internal issues relate to any function/process that occurs within an organization and is considered
by the participants to be intrinsic to firm’s functionality. The descending order of issues that
firms were involved with are: (1) strategic/ management issues; (2) staffing; and (3) operational.
Focus group participants considered ‘higher level planning and problem solving’ as strategic/
management issues. In region-specific terms, this involves issues related with government
policy, balancing governance-related issues including balancing the Indigenous and nonindigenous customer base, organizational architecture. Staffing issues are related to HR policies,
time spent in recruiting staff, and addressing occupational health and safety issues. Operational
issues largely stem from managing people, processes, practices and performance.
External issues are functions and processes that occur outside the SME. In descending order of
issues reported at focus group discussions were: (1) institutions that dominantly influence the
workings of organizations, such as Northern Territory Government and the Commonwealth; (2)
policy/ political aspects such as contending with regulation impacts; (3) processes including
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protocols to conduct businesses with Indigenous people on their lands; and (4) programs
including funding and acquittals.
CONCLUSIONS AND IMPLICATIONS FOR CLUSTER EMERGENCE
For assessing the emergence of clusters in an environment as stated above, there is a need to ask
a question as to what constitutes a cluster? This is important for understanding policies that need
to be established for promoting cluster emergence? There is need for clarity whether features of
clusters are the same in a remote, regional, sparsely populated area as compared to their urban
counterparts? Finally, does size of firms matter in understanding cluster emergence?
According to Harvard Business School web site, clusters are “geographical concentrations of
interconnected companies, specialized suppliers, service providers, and associated institutions in
a particular field, that are present in a nation or region” (http://www.isc.hbs.edu/econclusters.htm). There are other contributors who adopt a “no single, standard, ‘one size fits all’
model of clusters” (Johnston, 2003, p.9). There have been several attempts at developing
typologies of clusters. But there are certain core features, referred to as dimensions, that
characterize clusters. Marceau (1999), as mentioned in (Johnston, 2003, p. 9), has identified
these as:

‘horizontal clusters’ between small and medium-sized firms in an industry sector that both
compete and collaborate with each other;

‘web clusters’ between large firms and their core suppliers;

‘virtual clusters’, where physical co-location is not important; and
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‘emerging clusters’, where firms have a common resource base or resource needs, but have
only emerging relationships in production and innovation.
The evidence from the focus group discussions is that that SME’s are facing real operating
environments that are complex in nature, and therefore potential exists for several permutations
and combinations of these clusters to emerge in the economic landscape of the study area. Before
discussing these potential clusters it is important to recognize that there is a fundamental
distinction between networks and clusters.
Networks are ways of connecting. Clusters are organizational forms that constitute a core for
achieving competitive advantage. Networks can be considered as tools that can be used to
establish clusters. Networks cannot be regarded as clusters as they do not “necessarily imply
cooperation, trust, and distributional knowledge” (Orsenigo, 2007, p. 199).
Increases in productivity and strategic decisions constitute the fundamental impetus for change to
take place in firms’ configurations. Clusters represent a form of industrial structure that evolves
of necessity and are not a result of policy action. Governments including the Northern Territory
and the Commonwealth recognize the importance of creating market-based economic evolution.
So long as we recognize that clusters will emerge as a natural process in these isolated and
remote areas, the best that governments can do is to create markets to do what they are best at.
Enhancing market processes is the best long-term strategy that government policies need to
promote, for sustainable economies are only possible when involvement in business, either at the
individual or firm level, increases.
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There is willingness amongst firms to respond to these calls. A testimony of this is the high
proportion (90%) of non-participants in the focus group meetings who were unable to attend due
to work commitments. This suggested that they are more focused on operational activities than
strategic decisions related to engaging in formation of clusters. Perhaps there is a need to
interpret silence more than we have done in our research.
Policy makers need to understand the significance of operating environments to determine policy
domains. Although policy analysts feel that regional development will be enhanced through
prescribing for efficiency considerations, most businesses in remote areas are concerned with
achieving effectiveness rather than efficiency. Effectiveness requires entrepreneurial activity
based on strategic thinking. Efficiency requires use of strategy to deliver outcomes through
lowest cost combinations for achieving a market target or increase market shares for given cost
structures of firms.
Strategic thinking is more about answering the ‘to be or not to be’ question. Firms continue to
ask questions such as: Should the firm be actively engaged in cluster formation or not? How
actively should the firm be engaged? When is the right time? These are more related to effective
engagement at the firm level than achieving efficiency in a small, diverse and remote area
population. These are some of the questions that act as a guide for further research in this area.
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TABLES AND FIGURES
Table 1: Industry breakdown of Alice Springs businesses
Industry breakdown
L Property and Business Services
E Construction
G Retail Trade
I Transport and Storage
K Finance and Insurance
P Cultural and Recreational Services
O Health and Community Services
H Accommodation, Cafes and Restaurants
A Agriculture, Forestry and Fishing
C Manufacturing
F Wholesale Trade
Q Personal and Other Services
N Education
J Communication Services
B Mining
D Electricity Gas and Water Supply
Total
Total
444
378
294
129
105
96
78
66
66
60
39
33
24
9
0
0
1821
Source: Australian Bureau of Statistics, Counts of Australian
Businesses, including Entries and Exits, June 2003 to June
2007
October 16-17, 2009
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9th Global Conference on Business & Economics
ISBN : 978-0-9742114-2-7
Figure 1: Industry turnover
$ 10 m t o l e ss t h a n $ 2 0 m
$ 2 0 m t o l e ss t h a n $ 5 0 m
0 . 1%
0.3%
$ 5 m t o l e ss t h a n $ 10 m
0.7%
$ 2 m t o l e ss t h a n $ 5 m
3.3%
Z e r o t o l e ss t h a n $ 2 5 k
13 . 9 %
$ 1m t o l e ss t h a n $ 2 m
6.4%
$ 5 0 0 k t o l e ss t h a n $ 1m
8.2%
$ 2 5 k t o l e ss t h a n $ 5 0 k
10 . 2 %
$ 2 0 0 k t o l e ss t h a n $ 5 0 0 k
16 . 9 %
$ 5 0 k t o l e ss t h a n $ 7 5 K
12 . 4 %
$ 15 0 k t o l e ss t h a n $ 2 0 0 k
5.8%
$ 7 5 k t o l e ss t h a n $ 10 0 k
9 . 1%
$ 10 0 k t o l e ss t h a n $ 15 0 k
12 . 4 %
Figure 2: Breakdown of Alice Springs businesses by Employment Size
Total Alice Springs Employment Size
267
66
3
Non employing
Micro
Small
414
1071
Medium
Large
October 16-17, 2009
Cambridge University, UK
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9th Global Conference on Business & Economics
ISBN : 978-0-9742114-2-7
B Mining
D Electricity Gas
And Water
Supply
TOTAL
Large
Ranked
Large
Medium
Ranked
Medium
Small
Ranked
Small
Micro
Ranked
Micro
Nonemploying
Ranked
Industry
G Retail Trade
L Property and
Business Services
P Cultural and
Recreational
Services
H
Accommodation,
Cafes and
Restaurants
E Construction
C Manufacturing
F Wholesale
Trade
O Health and
Community
Services
A Agriculture,
Forestry and
Fishing
I Transport and
Storage
Q Personal and
Other Services
K Finance And
Insurance
N Education
J
Communication
Services
Non
Employing
Table 2: Alice Springs business size by industry
84
4
105
1
78
1
27
1
0
2
Total
294
315
1
78
3
42
2
9
2
0
2
444
66
6
12
7
9
7
9
2
0
2
96
6
249
24
12
2
9
27
87
18
4
2
6
24
39
15
4
3
5
6
3
3
3
4
4
3
0
0
1
2
2
66
378
60
15
11
6
8
15
5
3
4
0
2
39
45
8
21
5
9
7
3
4
0
2
78
48
7
6
8
9
7
3
4
0
2
66
96
3
21
5
12
6
0
5
0
2
129
21
10
6
8
6
8
0
5
0
2
33
81
15
5
11
21
6
5
8
3
3
9
9
0
0
5
5
0
0
2
2
105
24
6
12
0
8
3
9
0
5
0
2
9
0
13
0
8
0
10
0
5
0
2
0
0
1071
13
0
414
8
0
267
10
0
66
5
0
3
2
0
1821
Source: Australian Bureau of Statistics, Counts of Australian Businesses, including
Entries and Exits, Jun 2003 to Jun 2007.
October 16-17, 2009
Cambridge University, UK
29