
nonconformist business communities, to highlight one element in this, was not
only important in shaping the outlook of the parvenu industrial entrepreneur, but
in factory towns relatively devoid of family connections, involvement in the
chapel played a ‘large, sometimes overwhelming part in the establishment of
business reputations’.
7
Recent work on the operations of small firms has empha-
sised the importance of family to business survival, whether in terms of family
partnerships – important to those industrial sectors with a need for relatively
high levels of fixed capital – or in terms of a multitude of small individual enter-
prises which relied on their families to provide capital, labour and premises.
Indeed, the survival of any city business beyond the life span of the founder
depended to a considerable extent on the ability and willingness of family
members to become involved. Families were of importance also in the forma-
tion of locally based networks of trust; and in several of the manufacturing
trades, informal networks, external to the firm but internal to local communi-
ties, were reinforced by geographical concentrations into particular districts or
localities.
8
Early access to local information networks was one of the external
economies that Alfred Marshall thought significant enough to substitute for the
internal economies of large-scale production in what he called the ‘industrial
districts’.
9
The development of a more formal institutional framework to help provide a
measure of control in an uncertain world complemented but never replaced
these informal links. The Chamber of Commerce was perhaps the most impor-
tant of these institutions, formed in the major towns and cities from the eigh-
teenth century, mainly by leading employers but seeking to represent the
interests of the business community as a whole, a responsibility which in Scottish
burghs was discharged by the guildry – members of the general business com-
munity – who elected representatives directly to key council committees. In the
second half of the nineteenth century, associations of specific producers –
iron and coal masters, employers in engineering, cotton manufacturing and
David Reeder and Richard Rodger
7
T. Koditschek, Class Formation and Urban Industrial Society (Cambridge, ), p. .
8
S. Nenadic, ‘The small family firm in Victorian Britain’, Business History, (), –;
S. Nenadic, et al., ‘Record-linkage and the small family firm: Edinburgh –’, Bulletin of the
John Rylands Library, (), –; S. Nenadic, ‘The life-cycle of firms in late nineteenth-
century Britain’, in P. Joubert and M. Moss, eds., The Birth and Death of Companies (Carnforth and
Park Ridge, N. J., ); and S. Nenadic, ‘The Victorian middle classes’, in W. H. Fraser and I.
Maver, eds., Glasgow, vol. : to (Manchester, ), esp, pp. –. See also G. Jones
and M. B. Rose, ‘Family capitalism’, Business History, (), –; M. B. Rose, ‘Beyond
Buddenbrooks: the family firm and the management of succession in nineteenth-century Britain’,
in J. Brown and M. B. Rose, eds., Entrepreneurship, Networks, and Modern Business (Manchester,
), pp. –; and R. Church, ‘The family firm in industrial capitalism: international per-
spectives on hypotheses and history’, Business History, (), –.
9
Marshall, Principles, Bk , ch. , quoted by W. Lazonick in B. Elbaum and W. Lazonick, The Decline
of the British Economy (Oxford, ).
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