Dissertations / Theses on the topic 'Canadian SMEs'

This thesis explores the intersection of export, small firms and the Internet. In particular, the challenges of export barriers and the role of the web will be examined. Advances in technology, especially Internet technology, open new opportunities for exporters. The Internet enables virtual interaction between stakeholders in many markets around the world. Yet, with these opportunities come challenges. Exporters face economic, regulatory and social challenges in foreign markets. Transportation distances, import/export documentation, and language differences are just some of the challenges an exporter faces abroad. Large firms, with more resources, can acquire or develop know-how to address these challenges. Small and medium-sized firms, with fewer resources, are subject to considerable challenges in overcoming export hurdles and adopting Internet technology. Using a model developed from the review of literature, this study provides an integrated examination of SME exporters and the role of an Internet strategy. The factors for exploring Internet strategy draw from multiple activities, including outward looking Internet usage, Web 2.0 online network participation, and website characteristics and presence. Central to the model are marketing decisions and external forces that represent challenges for SMEs. Both are linked specifically to strategy and performance, providing an insight into the Internet's role in export success. This study used a multi-method approach to data collection. Survey, website evaluation and online business network data was generated from 83 Canadian SME exporters, with follow-up depth interviews with nine respondents. Qualitative theme analysis was applied to the interview data, open-ended survey questions and website observations. This informed an integrated analysis using qualitative and quantitative data. Findings indicate SMEs use the Internet and websites to overcome many key export barriers and improve their overall export performance. Owner/managers gather export market information and regard the Internet as a key means of communicating and relationship-building with potential and existing customers. However, the SMEs of this research focus on product-driven websites; evidence suggest the firms are underutilizing the opportunity to provide an interactive and internationalized experience for their foreign users. The Internet is important for mitigating external barriers such as foreign regulations, and language, while websites were found to be less utilized for these external barriers. Recent developments in Web 2.0 appear to offer interesting new approaches to addressing export barriers, but more research is needed in this area. A key outcome of this research is the importance of owner/manager attitude toward the Internet. The more owner/managers value the Internet the more it is used, the more it is used the more export barriers are addressed, and the more export barriers are addressed the better export performance the firms achieve. The findings from this thesis make several important contributions to the literature/knowledge base. The contributions pertain to the impact of an online strategy regarding export barriers and export performance. The qualitative and quantitative findings show an online strategy helps SMEs overcome several marketing and EXTERNAL export barriers. These findings add to the work of Leonidou (2004) about export barriers which the author notes are particularly challenging for SMEs. And, this research extends the qualitative work of Tiessen, Wright and Turner (2001), Tiessen (2003) and Saulnier and Rosson (2004). Several researchers, including Lohrke, McClure Franklin and Frownfelter-Lohrke (2006), Saban and Rau (2005) and Moini and Tesar (2005) have done empirical work about websites as channels. But the work did not involve evaluation of the firm's websites themselves. Nor does this extant work link online performance to export barriers and export performance as completed in this research. Furthermore, the research done in this thesis incorporates preliminary qualitative and quantitative data about SMEs use of Web 2.0 for export. Finally, this research offers a model linking the Internet to export barriers and performance. While the model as a whole needs further testing and validation, it provides an integration of SME strategy, resources, the unique role of the owner/manager, and the influence of the Internet regarding export performance. This model specifically links these factors to export barriers, which is a distinct contribution.

SME exporters constitute a critical economic force that contributes significantly to national productivity and job creation in the Canadian economy. However, the academic literature suggests that female-owned SMEs are less likely to export. With lower export propensity, the potential of female-owned SMEs for organic growth, economic self-sufficiency and wealth creation could be comprised. This paper applies logistic regression to study factors that influence SME owners’ export propensity with particular reference to the moderating effect of gender in the context of the Ajzen and Fishbein ’s (2005) theory of Reasoned Action and Planned Behavior. We improve the methodology of prevailing research by redefining “gender” in a more appropriate way and by computing gender interaction effects more accurately. Based on this analysis, we found that, although male- and female-owned SMEs show different likelihoods of exporting, gender does not have a direct residual impact. Instead, systemic gender differences account for most differences in the export propensity between male-owned and female-owned SMEs. Specifically, female-owned SMEs may be systemically disadvantaged because their firms are smaller, more limited in management capacity with younger and less-experienced managers. The lack of resources and market knowledge become constraining factors for them with respect to becoming “export-ready”. Additionally, female SME owners show a higher perception of risk and financing difficulty (although they do not encounter higher rejection rates of financing applications). Their subjective perceptions of potential barriers may contribute to their reluctance to export.

Competitive pressure and desire for success drive enterprises in general to involve in knowledge acquisition and dissemination activities that are becoming increasingly significant in the rapid changing and globalising economic world. In addition, with the increased mobility of information and the global labour force, knowledge and experience can be transferred instantaneously around the globe; thus, any advantage gained by one company can be eliminated by comparative improvements overnight. Therefore, the only comparative advantage a particular company will face will be its process of innovation – combining market and technology know-how with the resourceful talents of knowledgeable labour to solve a constant stream of competitive problems- and its ability to derive value from information. In this context, internal and external knowledge acquisition, intra-firm knowledge dissemination and management decisions taken in response to the significant information generated and subsequently filtered became the key factors of entrepreneurial success. This thesis explores how market orientation, learning orientation and entrepreneurial orientation systematically contribute to and are sources of competitive advantage in growth-oriented SMEs. The objective of this study was to investigate the likelihood of a growth-oriented enterprise established in Atlantic Canada to be involved in knowledge acquisition and dissemination activities and to succeed conditional on numerous internal and external factors. A ‘mixed-methods’ research approach was used in this study, comprised of: 1) a web-based questionnaire to study the knowledge management process and other aspects of entrepreneurial success and 2) ‘semi-structured’ interviews with a sample of the responding entrepreneurs. The findings suggest that knowledge management practices: external acquisition, intra-firm dissemination and responsiveness, do vary across the levels of entrepreneurial performance among the Atlantic Canadian SMEs investigated in the study. Having a market orientation and investing in human resources of the firm were found to be critical drivers of innovation leading to potential competitive advantage.

Innovation intermediaries provide a range of services to assist firms during the process of innovation. How SMEs perceive innovation intermediaries is an area of investigation that would provide important information on how innovation intermediaries’ assist small and medium enterprises (SMEs). This study focuses on the cleantech industry and explores SMEs’ expectations and perceptions of an established community-based intermediary (CBI) moving into their sector. A qualitative research methodology was adopted to collect data from 15 sample SMEs. In regards to SMEs, the findings show that cleantech companies face financing, partnerships, marketing, sales, regulatory and bureaucratic challenges. In regards to innovation intermediaries, the findings showcase how CBI, a regional intermediary, is not effective in supporting cleantech SMEs with their sector specific needs or challenges.

It is widely believed that small and medium-sized enterprises ("SMEs"), acting as a source of innovation and job creation, play a key role in the economy of Canada.
The legal framework which regulates SMEs' activities is vast. This thesis focuses on the legal framework and most important aspects of three critical areas: financing, taxation and international trade.
After describing and interpreting the legal framework of these areas and the information obtained from public and private institutions which are considered key in these issues, this thesis presents conclusions in relation to the question of how and in what way, if any, the current legislative and regulatory framework relating to SMEs contributes to the growth and prosperity of SMEs and to the importance of such a framework to SMEs' success and growth.

This study investigates the magnitude of credit contraction encountered by Canadian Small-and-Medium-Sized-Enterprises (SMEs) during the recent financial crisis of 2007-2008. These firms account for an important source of job creation and economic welfare (Haltiwanger et al., 2010); therefore, to ensure the creation and growth of SMEs through a smooth flow of capital is crucial for a healthy economic recovery from the crisis. The empirical observation obtained in this study is contrary to what the theory suggests, as well as what many of the existing studies witnessed (i.e., a financial crisis has a negative impact on SME loan circulations). Using binary probit regression and structural break testing, this work finds that Canadian SME loan approval and application rates were higher during the crisis period. This somewhat counterintuitive result prompts the researcher to search for the possible factors enabling SME credit lending in Canada to retain its health during the time of financial distress, which include: (1) the stability of Canadian banks evidenced by the relatively constant Capital Tier I ratio during the crisis; (2) initiatives the Canadian government implemented as a response to the crisis. This result also raises a question whether the five billion dollars the federal government injected in the SME lending market under the Business Capital Availability Program (BCAP), a measure designed to insulate Canadian SMEs from the liquidity shock, could be justified. This research question will be investigated as a future area of research.

Background

Internationalization is a rapidly increasing trend of firms and markets in today’s business

environment where fashion companies have evolved to be one of the most successful and

dynamic international retailers. Though a majority of SMEs in the retail fashion industry have

the potential to become international, many never do due to a number of barriers. When

making decisions regarding international strategies, it is important for companies to analyze

and understand the foreign market to determine if there is an opportunity for success on the

market. However, many SMEs fail to do a thorough market analysis prior to

internationalizing and never reach their full potential on the market.

Purpose

The purpose of this thesis is, through a market analysis, to determine if Sweden is a suitable

market for a Canadian SME in the men’s retail fashion industry.

Method

A qualitative study was carried out to help determine the purpose of the paper where data was

collected through a single case study of the company Phresh Image. Primary research was

conducted through interviews with the CEO of Phresh Image as well as focus group meetings

to collect data regarding the company and the potential customers. The interviews were

structured after the theoretical framework and included participants described by Phresh’s

target group. Secondary data was collected regarding Sweden and the Swedish retail industry

and used to compare the domestic market to the foreign market.

Conclusion

By answering the research questions, the thesis found that Sweden is a suitable market for a

Canadian SME in the men’s retail fashion industry. Branding, quality design were among the

most influential characteristics for Swedish consumers and retail companies in the fashion

industry must take these into consideration when internationalizing to Sweden. Canada’s and

Sweden’s economic, political and cultural environments proved to be rather similar though

some adaptation of a company’s marketing mix may be required. In addition, exporting was

shown to be the most suitable way for retails to enter into Sweden providing limited barriers

and low risk.

It has been empirically established that the differences in the lending rates charged by traditional and large lenders to large versus small creditors can be largely attributed to differences in information opacity (Dietrich, 2012; Holmes et. al. 1994). The greater the information possessed by the creditor, the lower the rate charged to the borrower, suggesting again that a risk premium is being charged for information opacity. Securitizing debt with collateral can reduce the lending rate charged, however differences in the rates charged cannot be fully explained by information opacity or availability of collateral. This dual study approach aims at increasing the understanding of loan pricing determinants. The first study uses data from the UK Survey of SME Finances, 2007 to explore factors internal and external to the firm that are significant in influencing credit prices, providing insight on why credit prices fluctuate from firm to firm. The second study uses interviews with firm owners in the Toronto computer animation and visual effects (CA&VFX) industries to effectively capture the intricacies and gain insight on the nuances involved in the pricing of credit for firms in these industries. The results of the first study suggest that the use of collateral, loan amount, loan duration, and firm size are significant credit pricing influencers while a firm’s strategic orientation, specifically product innovation and propensity to export, are of little importance. Results from the second study suggest that firm owner perceptions generally align with the extant literature on collateralization and relationships with lenders.

This research explores aspects of small tourism businesses in a Canadian context. A number of authors (e.g., Getz and Nilsson, 2004; Hall and Rusher, 2004; Lynch and Tucker, 2004; Morrison and Teixeira, 2004a/b) have noted that while small and medium sized enterprises (SMEs) are acknowledged as an important parts of the tourism industry, they are underrepresented in the academic literature. Of the small business research that has been conducted, a sizeable portion has focused on industries other than tourism; the tourism-specific research on SMEs has predominately been conducted in Western Europe, Australia and New Zealand and has frequently focused on a single segment of the industry, often the small accommodation sector. Little research of this nature has been done in a Canadian context. The study was set in Stratford and Goderich, Ontario, and compares and contrasts two parts of the tourism industry: the accommodation and food and beverage sectors. The study focused on small business owners and examined three main aspects: their motivations for starting/purchasing the business, how they evaluated the success of the business and the experiences they had while running the business. The research also set out to examine the demography of Canadian tourism SME owners and how they defined small business. A mixed methods approach was adopted. Data were collected through mailed questionnaires which were followed up with semi-structured interviews. Findings showed that despite motivations being similar between study sites and industries, the paths that lead owners to their business varied greatly. Though ‘lifestyle’ motivations were predominately cited, financial considerations were also noted. Owners frequently used financial calculations to measure the achievement of their lifestyle motivations. The experiences owners had with their business were overwhelmingly positive and were grouped into six themes: changes in the industry, relationship building, staffing, the importance of customer service, financial costs of running a small business and time management. The results of this study confirmed that Canadian tourism SME owners in Stratford and Goderich, Ontario, possess similar motivations, measurements of success and experiences as their national and international counterparts.

ABSTRACT Portfolio Credit Risk Modelling for a Canadian SME Loans Portfolio Jade Michel Haddad The Basel II Capital Accords make strong and controversial assumptions on the behaviour of Small and Medium Enterprises (SMEs) in a credit portfolio. Benefiting from a rich, and as such rare, dataset of default and credit risk events, we measure the portfolio credit risk characteristics of one of the riskiest segments of the Canadian SME market. The depth of our data allows for robust segmentations of the data along dual dimensions, including risk grade and size of borrowers, not commonly found in the literature. This, in turn, allows for an SME-specific calibration of models for portfolio credit risk. In particular, we use the Merton-type asset value model (AVM) and the CreditRisk+ frameworks to present empirical estimates of the correlations that underline the relationship among borrower segments in the portfolio. In addition, we present loss distribution estimates for our SME portfolio under various extensions to the AVM and CreditRisk+. These extensions include a Multiple Correlated Sectors implementation of CreditRisk+ and simulation-based, as well as analytical implementations of both frameworks. Our results allow for a thorough testing of Basel II assumptions for portfolio credit risk and its application to SME borrowers. In particular, we present evidence in contrast to Basel II specifications on SME asset correlations, and quantify the impact of the single sector and infinite granularity assumptions in the Basel II Internal Ratings Based (IRB) approach to portfolio credit risk. Our work is undertaken within a consistent calibration of the AVM and CreditRisk+ frameworks and presents an SME-specific calibration refinement for CreditRisk+. Finally, we focus on capital allocations under the Basel II framework and present a partial implementation analysis quantifying the impact of the application of various Basel II conventions to our SME portfolio. Capital allocations from our internally-calibrated portfolio credit risk frameworks reveal a misallocation of capital among SME segments under Basel II. Given our thorough assessment of both Basel II and the credit risk characteristics underlying SME portfolios, we provide suggestions for an improved SME portfolio credit risk management framework.

There is a large body of research supporting the importance of market orientation in determining performance. A growing body of research supports the notion that strategic alliance management competencies positively influence performance. Few empirical investigations have examined the importance of market orientation in the biotechnology industry, much less the effect of alliance orientation on performance, or the combined effect of market and alliance orientation on performance. This study explores these relationships among Canadian biotechnology companies with medical/healthcare focuses. Of the 394 Canadian medical/healthcare biotechnology companies identified, 81 usable responses were received, yielding a response rate of 20.6 percent. It was found that market orientation positively and significantly influenced business performance, supporting the first hypothesis. Additionally, alliance orientation positively and significantly influenced business performance, supporting the second hypothesis. However, when market and alliance orientation were examined together, alliance orientation’s effect on business performance remained positive and significant, but market orientation’s effect on business performance became negative and non-significant. This prompted a further analysis that investigated the presence of a mediation relationship. Market orientation was fully mediated by alliance orientation in its relationship with business performance. This study contributes academically by adding to market and alliance orientation research and by the successful development of a biotechnology-specific performance instrument. This study contributes to marketing and management strategy, as it outlines performance indicators that enable high performance.

This In-Depth Analysis was conducted as part of a Work Project. The main goal was to thoroughly analyze Canada, as a potential country to internationalize to. During the analysis, four dimensions were studied – the quality of contacts in the country, the market sales potential, the competitive environment and the market entry conditions. For the market sales potential and the competitive environment, a framework was developed to build a decision-making rationale, while the other two dimensions were more descriptive.

PhD Thesis Doctoral Program in Industrial and Systems Engineering
The concept of building defined approaches, models and frameworks for optimizing different projects that belong to the same portfolio is gaining more attention and emphasis from companies, especially the small and medium sized ones. Yet, many problems that lie into the existing frameworks are keeping those companies away from using it. A sample of these SMEs that work in the field of construction and building materials in Canada were a filed for our research to better identify the issues in these existing frameworks, understand its influence and effect on companies and develop an ideal integrated framework that deals with project, portfolio and innovation management at the same time. The data has led in this research to identify 5 major issues that needed to be embed into the new integrated approach that is called Innoframe. This is a new framework that is an outcome of a thorough study on the usage, behavior and prospects of two main levels of personnel which are team members and their project managers. The study has followed a straightforward path in the sense of researching, analyzing and developing. The approach allowed the study to make good use of the literature and data collected on one hand, and to translate it into useful tools that help a lot in developing the new framework. All in all, the study emphasized the three main phases mentioned previously to come up with a new integrated framework that can serve as a roadmap for SMEs in the industry of construction and building materials.
O conceito de construir abordagens, modelos e frameworks definidos para otimizar diferentes projetos pertencentes ao mesmo portfólio está a ganhar mais atenção e ênfase por parte das empresas, especialmente as de pequeno e médio porte. No entanto, muitos problemas que se encontram nas estruturas existentes impedem que essas empresas o usem. Uma amostra dessas PMEs que trabalham na área da construção e materiais de construção, no Canadá, foi usada na nossa investigação para melhor identificar os problemas existentes nesses frameworks, compreender sua influência e efeito sobre as empresas e desenvolver uma framework integrada ideal para lidar com gestão de projetos, portfólio e inovação ao mesmo tempo. Os dados permitiram nesta investigação identificar 5 grandes questões que precisaram de ser incorporadas na nova abordagem integrada chamada Innoframe. Esta é uma nova framework resultante de um estudo aprofundado sobre o uso, comportamento e perspetivas de dois níveis principais de pessoal, que são membros da equipe e seus gestores de projeto. O estudo seguiu um caminho lógico, passando pelas etapas pesquisar, analisar e desenvolver. A abordagem permitiu que o estudo fizesse bom uso da literatura e dos dados recolhidos, por um lado, e que se traduzisse em ferramentas úteis que ajudaram muito no desenvolvimento do novo framework. Em suma, o estudo enfatizou as três principais fases mencionadas anteriormente para chegar a um novo framework integrado que pode servir como um roteiro para as PMEs na indústria de construção e materiais de construção.

Le réchauffement climatique dans l’Arctique canadien est deux fois plus rapide que la moyenne globale, ce qui accélère la fonte de la banquise et bouleverse radicalement la faune, la flore et les communautés de la région tout entière. Ce réchauffement est causé non seulement par la hausse des émissions de gaz à effet de serre, mais également par des agents de forçage climatique de courte durée comme les aérosols troposphériques. Toutefois, le forçage radiatif des aérosols dans la région polaire est beaucoup moins bien estimé que celui des gaz à effet de serre, notamment le CO2, et demeure toujours incertain. Cette grande incertitude résulte principalement de la grande variabilité spatiotemporelle des propriétés chimiques et physiques des aérosols, en plus de la complexité des boucles de rétroaction observées en Arctique. D’ailleurs, les données sur les caractéristiques des aérosols et de leur répartition à travers la région sont très limitées, et ce, plus particulièrement dans le Haut-Arctique canadien. Pour remédier à ce problème, une série de mesures a été effectuée sur une période de 3 ans (2016-2019) dans le laboratoire de recherche sur l’environnement atmosphérique polaire (PEARL, 80N 86O) situé près de la station météorologique d’Eureka, au Nunavut, Canada. La distribution en taille des aérosols a été mesurée en se servant de plusieurs instruments, dont un compteur optique de particules (OPC), un granulomètre de mobilité électrique à balayage (SMPS) et un granulomètre aérodynamique (APS). Les propriétés optiques des aérosols ont été déterminées avec deux extinctiomètres photoacoustiques (PAX) qui opèrent respectivement à des longueurs d’onde de 405 et 870 nm. Les observations réalisées à l’observatoire PEARL démontrent une forte variation saisonnière dans les propriétés optiques et microphysiques des aérosols polaires. Pendant l’hiver et le printemps, l’atmosphère arctique est envahie par une brume sèche d’origine anthropique qui se traduit par une forte augmentation dans la taille, la concentration en nombre et les propriétés optiques extensives des aérosols. Les épisodes de brume arctique commencent généralement en mi-décembre, où des évènements de poussières minérales ont aussi été observés, et se terminent en mai où la formation et le grossissement de nouvelles particules s’amorcent. Le début du printemps mesure les concentrations d’aérosol en mode accumulation les plus élevées durant l’année. Les aérosols les plus sombres qui composent la brume arctique ont été identifiés comme étant de la suie ou du carbone noir transporté dans l’Arctique à partir de l’Eurasie et de l’Alaska. Quelques relations systématiques entre les propriétés optiques et la distribution de taille des aérosols ont également été calculées et révèlent une différence majeure entre les aérosols interagissant avec la lumière à 405 et 870 nm.
Global warming in the Canadian Arctic is twice as fast as the global average, accelerating the melting of sea ice and radically disrupting the fauna, the flora, and the communities of the whole region. Arctic warming is caused not only by rising greenhouse gas emissions, but also by the short-lived climate forcing agents such as tropospheric aerosols. However, aerosol radiative forcing in the polar region is less precisely estimated than that of greenhouse gases, notably CO2, and remains highly uncertain. This large uncertainty arises mainly from the high spatiotemporal variability in aerosol chemical and physical properties, in addition to the complexity of the feedback loops observed in the Arctic. Furthermore, datasets on aerosol characteristics and their distribution across the region are very limited, particularly in the Canadian High Arctic. To address this issue, a series of measurements were conducted over a 3-year period (2016-2019) at the Polar Atmospheric Environment Research Laboratory (PEARL, 80N 86W) near Eureka weather station, in Nunavut, Canada. Aerosol size distribution was measured using several instruments including an Optical Particle Counter (OPC), a Scanning Mobility Particle Sizer (SMPS), an Aerodynamic Particle Sizer (APS). Aerosol optical properties were determined by two Photoacoustic Extinctiometers (PAXs) which operate at wavelengths of 405 nm and 870 nm, respectively. Observations made at the PEARL observatory show a strong seasonal variation in the optical and microphysical properties of polar aerosols. In the winter and spring, the Arctic atmosphere is impacted by an anthropogenic haze that results in a sharp increase in aerosol size, number concentration, and optical properties. Arctic haze episodes typically occur in mid-December, when mineral dust events have also been observed, and end in May when formation and growth of new particles begin. Early spring exhibits the highest accumulation-mode aerosol concentrations during the year. The darkest Arctic haze aerosols have been identified as soot or black carbon transported into the Arctic from Eurasia and Alaska. Some systematic relationships among aerosol optical properties and size distribution have also been calculated and reveal a major difference between aerosols interacting with light at 405 nm and 870 nm.

This dissertation is concerned with how the social capital of corporate insiders is associated with the governance and performance of publicly listed small and medium- sized enterprises (SMEs) in Canada. The premise of social capital theory is that relationships matter and that network structures have implications for outcomes. Encouraging SME growth and performance is an important part of economic policy. In Canada, going public is one way innovative SMEs can access capital for growth. This research considers the network of relationships between directors, owners and senior officers in a public corporation – i.e. the social capital of corporate insiders – to better understand corporate governance. Family-run firms, large corporate ownership and professional relationships between directors have been the subject of numerous corporate governance studies. They can also be considered networks. In this research, I assume that these various networks act to unite corporate insiders into coalitions with similar interests. I consider the implications of social capital on firm performance in terms of effective control, director independence, CEO ownership, and family control of the firm. The hypotheses, generated from the theory of internal social capital of the firm, are tested using fixed and random effects regression models on a panel of Canadian industrial SMEs that had an initial public offering between 2000 and 2010. SME performance is measured by Tobin’s Q. I find support for the idea that the structure of social capital within the firm is related to corporate governance and associated with performance. My results indicate that having multiple coalitions in the firm, as well as more independent directors, are both positively associated with performance. There are also indirect effects related to the social capital of the firm. After controlling for the structure of social capital in the firm, CEO ownership is found to have no association with firm performance, except in a few cases where the CEO owns in excess of 40 percent of the firm. Once these cases are omitted from the sample there does not appear to be a significant relationship between CEO ownership and performance. These few cases suggest the role of CEO may be important to performance outcomes in highly controlled firms. Further case-study research into this finding may be merited. Finally, I find no evidence that family-run firms have valuations that differ from other firms. The theory of internal social capital of a firm contributes to the corporate gov- ernance literature by considering how the network of relationships within the firm affects outcomes. There are also useful methodological contributions from this re- search. Theoretically grounded network measures determine: (i) a scale of effective control of a firm when there are multiple coalitions of owners, and (ii) a way to iden- tify truly independent directors. Entrepreneurs, directors and managers will find this research useful because it outlines how the structure of relationships within an SME is associated with firm valuation.