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PurposeThe purpose of this paper is to assess the financial performance of microenterprises in Ghana by applying the resource‐based theory of the firm. Specifically, it is tested that if firm‐specific resources dominate sector and market‐wide effects in explaining microenterprise performance, as suggested by the resource‐based theory.Design/methodology/approachThe relevant literature for both microenterprise performance and the resource‐based theory is reviewed. Data from the 1998/1999 Ghana Living Standards Survey are analysed using ordinary least squares, followed by robustness checks.FindingsFactors embodied in firm‐specific resources jointly impact enterprise performance. However, sector/market factors also play a role, suggesting that the interaction between microenterprise, sector, and market factors helps explain enterprise performance.Research limitations/implicationsAll the constructs of the resource‐based theory cannot be tested due to data limitations.Originality/valueSmall enterprises play a key role in promoting developing country growth, but no study has evaluated microenterprise performance using this particular data set and the resource‐based theory of the firm. Future research should focus on collecting data to further validate this theory.

Directive 93/43/EEC introduced the concept of good hygiene practice, in response to a pan‐European increase in the incidence of food poisoning, to foster a preventive approach to food safety. UK legislation reinforces the EU position that food businesses are responsible for the implementation of good hygiene practices. The response of the food industry has been to develop audited standards of hygiene, higher than explicit legal requirements. Small businesses have, however, been slow to adopt industry hygiene standards. A case study of small manufacturers of ready to eat meat products investigated the reasons for this. Businesses were first audited to the EFSIS[1] standard, to compare current practice with recommended best practice. Second, technical managers or owner‐managers were interviewed, to gain an insight into their knowledge of industry standards in particular, and the process of hygiene management in general. The analysis found significant differences in the knowledge of technical managers and owner‐managers, with the latter often unaware of the existence of audited standards. It is argued, therefore, that, in order to increase the implementation of good hygiene practices, further programmes to inform small food businesses about industry standards are required.

Presents the results of a postal questionnaire to UK food and drink manufacturers on the costs of compliance with food regulation. In particular, the questionnaire focused on the usefulness of compliance cost assessments ‐ introduced by the Government in 1985 across all government departments as an analytical tool for assessing the regulatory costs to business ‐ as they relate to food businesses. Explains that the questionnaire sought to establish to what extent food companies actually costed the impact of food regulation on their business operations and explored other aspects of food regulation, such as the benefits and constraints. Reports the results which gave some unexpected insights on the costs of compliance with food regulation. For example, the majority of respondents were not aware that the Ministry of Agriculture Fisheries and Food carried out compliance cost assessments on food regulation; around two‐thirds of the sample found it “difficult” or “very difficult” to identify where compliance costs would affect their company and an even greater proportion (more than three‐quarters) said they would have problems quantifying compliance costs. Concludes that the compliance cost assessment, as a tool for helping to analyse the cost of food regulation on businesses, is an inappropriate method for the food sector and the development of new methods should be considered.

Spencer Hanson PhD explaine how the subsidies paid under the Common Agricultural Policy have an indirect effect on food consumption.