Copyright is owned by the Author of the thesis. Permission is given for a copy to be downloaded by an individual for the purpose of research and private study only. The thesis may not be reproduced elsewhere without the permission of the Author. ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT IN NEW ZEALAND 1880-1910 A thesis presented in partial fulfilment of the requirements for the degree of Doctor of Philosophy in History at Massey University L"lN HUNTER 2004 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT ACKNOWLEDGEMENTS At the outset of this thesis, I did not know that this research would take so long, that it would draw on the resources of so many people, and that it would leave me owing such a debt to my friends and family-none moreso than my wife, Debra. She walked with me every tentative, sometimes backward, step of this road. And a few words do not do justice to the love, kindness, level-headedness, and sacrifice she offered that helped us all through this project. Thank you Debra. Likewise, our children, Sarah, Elise, Thomas, Benjamin, and Michael have put up with a preoccupied father, endlessly. Yet, despite this, in the good times and the difficult times, they were a constant encouragement and a source of much love-thanks gang. I have benefitted in many ways from the assistance of my supervisors, Associate Professor Peter Lineham from Massey University, and Emeritus Professor Russell Stone of the University of Auckland. Professor Lineham's support made it possible to do a thesis on business history in New Zealand; he read draft after draft, always positive as he directed me to engage historical questions. Likewise, Professor Stone, who despite having a large number of calls on his time, embraced this project from the outset, expertly guiding me in the peculiarities of New Zealand economic development. Thank you bOtl1. At the University of Auckland I was fortunate to have the companionship of many supportive colleagues including: Larry Murphy, Kevin Parnell, Felicity Lamm, Joe Beer, Erling Rasmussen, Suchi Mouly, Paul Gilberd, and Manuka Henare. In particular, I would like to acknowledge the assistance of Associate Professor Marie Wilson. Without her help fashioning arguments and getting rid of unnecessary passages, I would have rambled on continually. Richard Higham activated my interest in entrepreneurship ten years ago; I am grateful for his continued interest in my research. Steve Jones, previously of the University of Auckland (now at the University of Dundee), came to my assistance on numerous occasions-well armed with liberal helpings of economic history and wit. At Auckland University of Technology, Chris Batstone, during a memorable year spent sharing an office built only for one, showed me how to construct a database of entrepreneurs. At the University of Auckland, Robert Soakai and I shared our common frustrations with PhD research, and celebrated, a few choice victories. 2 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT Librarians at Massey University, Auckland University of Technology, and the University of Auckland helped on many occasions to fInd articles and papers; I am grateful for their assistance. At the end of it, however, this work is mine; I bear the responsibility for what is, what isn't, and what should have been presented here. Ian Hunter, Auckland, 2004 3 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT CONTENTS ACKNOWLEDGEMENTS LIST OF TABLES LIST OF FIGURES ABSTRACT INTRODUCTION PART I : THE IDEA OF ENTREPRENEURSHIP 1 . FROM UNDERTAKER TO ENTREPRENEUR: A REV IEW OF THE LITER"-\TURE PART I I : THE ENTREPRENEURL-\L ECONOMY 2. THE Ni\ TURE OF THE DEVELOPI G ECONOMY 3. THE POLITICAL ECONOMY OF j\N EVOLVING SETTLER COLONY 4. THE I NOV"-\ TION DYNAMIC AT WORK IN ECONOMIC EXP.-\NSION PAGE 2 6 7 8 9 1 7 6 5 89 1 1 7 4 ENTREPRENEURSHIP AND ECONOMIC DET/ELOPMENT PART Ill: THE ENTREPRENEUR I N THE COLONLU ECONOMY 5. A C\.SE .-\.N.-\.L YSIS .-\.PPRO.-\.CH TO BU S I NESS HISTORY 6. THE ENTREPREN EURL-\.L Ir-.IMIGR.-\.NT: r-.rrGR.-\TION A.ND EN TERPRISE I N .-\. COLONL-\.L ECON Or-.IY 7. C\PIT.-\.L .-\.ND THE COLONL-\.L ENTREPRE N E U R: ENTERPR I SE I N THE F.-\'CE OF SC-\.RCITY 8. RISK, PERSISTENCE .-\.ND FOCUS: A L IFECYCLE OF THE COLONL-\.L E N TREPRENEUR CON C LUS ION: ENTREPREN E U RSH IP l\ND .-\. NEW VIEW OF 'THE LON G DEPRESSION' ApPE N D I CES 161 190 219 255 290 A. LIST OF ENTREPRENEURS 308 B. CASE A N ,-\.LYSIS INFORM.-\.TION COLLECTION SHEET 311 C. IN D USTRL-\.L .-\.CTIVITI ES R.-\'NKED BY C-\'PIT.-\'L PER PL-\.NT 319 D. TWEN TY L-\.RGEST I N D U STRL-\.L .-\.CTIVITIES BY C -\P I T.-\'L I N VEST;-'IEN T E. AVERAGE FACTORY SIZE F. AUCKL-\.ND GOLD C O MP.-\.NIES: 1890 IN D EX 325 330 332 333 354 5 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT LIST OF TABLES TABLE 1 . Population of the North and South Islands: 1 858-1 9 1 1 2. New Zealand Tracling Figures: 1 853-1 880 3. New Zealand Tracling Figures: 1 88 1 -1 9 1 0 4. Rank Order of Main Exports: 1 880-1 930 5. Gold Exports: 1 857-1 9 1 0 6. Entrepreneurial Activity 7. Settlement Location of Case Analysis Entrepreneurs 8 . Occupation of Entrepreneurs' Fathers 9 . Age First Started Work 1 0. Number of Different Occupations 1 1 . Number of Jobs Prior to First Venture 12. Industry Activity of Entrepreneurs 13 . Lifetime Venture Activity 14. Immigrant Entrepreneurs - Year Immigrated 1 5 . Immigrant Entrepreneurs - Age Immigrated 1 6. NZ Foreign-born and Immigrant Entrepreneurs: 1 88 1 17. Immigrant Entrepreneurs - Settlement Pattern 18. Immigrant Entrepreneurs - Industry 19. Comparison of Native and Immigrant Entrepreneurs 20. Start-up Sources of Capital 21. Reasons For First Venture 22. Business Expansion: Sources of Capital 23. Capital Investment by Industrial Class: 1 881 24 . Capital Investment in Plant and Machinery: 1 881 25 . Average Capital Entry Costs 10-Year Intervals 26. Lifetime Venture Activity PAGE 80 1 1 9 1 2 1 1 27 1 46 1 67 1 75 1 79 1 80 1 81 1 82 1 83 1 86 202 203 204 205 206 209 229 233 235 237 240 242 275 6 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT LIST OF FIGURES FIGURE PAGE 1 . Wool Exports: 1853 -1 9 1 0 68 2 . Miles of Track Open and Under Construction: 1 873-1 9 1 0 72 3 . N ew Zealand Population: 1 854-1 9 1 0 77 4. Government Revenue and Expenditure: 1 880-1 900 1 06 5. Main Expenditure I tems Public Works: 1 880-1 900 1 09 6. Primary and Private Schools in Operation: 1 874-1 9 1 0 1 1 1 7 . New Zealand Balance of Trade: 1 853-1 930 120 8. Imports and Exports: 1 853-1 9 1 0 1 22 9 . Per Capita Exports and Imports: 1 880-1 9 1 0 1 24 1 0. Wool Exports as a P ercentage of Total Exports : 1 87 0-1930 1 29 1 1 . Wool Price per lb. : 1 853-191 0 1 3 0 1 2. Emerging Exports: 1 880-1 890 1 3 1 1 3 . Factory Size Frozen Meat Industry: 1 88 1 -1 9 1 1 1 35 1 4. Capital Investment Frozen Meat Industry: 1 881 -1 9 1 1 1 36 1 5. Movement of Major Export Classes at 1 0-year Intervals: 1 880- 1 930 1 38 1 6. Shipping Tonnage and Outgoing Vessels: 1 853-1 890 1 40 1 7. Gold Price per Ounce: 1 853-1 9 1 0 1 44 1 8. Gold Exports in Ounces : 1857-1 9 1 0 1 45 1 9 . Butter Exports : 1 853-1 9 1 0 1 55 20. Settlement Locations of Case Analysis Entrepreneurs 1 76 21 . Sources of New Zealand Population Increase: 1 853-1 900 1 93 22. Emigration from the Colony of New Zealand: 1 853-1 9 1 0 1 94 23. Occupations of Adult Male Citizens Who Left United Kingdom for Australasia: 1 876-1900 1 96 24. Number of Industrial Establishments: 1 881 -1 9 1 1 226 25. Percentage of Establishments by C apital Investment: 1 88 1 -1 9 1 1 238 26. N ew Zealand Boot and Shoe factories: 1 88 1 -1 9 1 1 247 27. Saw Milling and Sash Door Factories: 1 88 1 -1 9 1 1 251 28. Lifecyc1e of the Entrepreneur 263 29. Annual Average Grain Prices: 1 853 -1 91 0 271 7 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT ABSTRACT This study investigates entrepreneurial activity in New Zealand between 1880 and 1 9 1 0. Economic indicators, population , import and export patterns , provincial differences, and industrial development are examined to understand entrepreneurship and its relationship to economic growth. In addition, a case analysis of 133 entrepreneurs is presented, which analyses the backgrounds, education, reasons for venture start-up , venture types, methods of growth, incidence of failure, and sources of capital for nineteenth-century New Zealand entrepreneurs. This study suggests that a range of structural characteristics present in the New Zealand economy at this time, such as rapid population growth, technological innovation, isolation of markets , business structures, public works investment, immigration , and fiscal policies , encouraged and fostered entrepreneurial activity. Common characteristics among those who undertook new ventures over this period are highlighted; these include skill, commercial experience, limited capital, partnership , networks and the propensity to undertake multiple business ventures. Overall, entrepreneurial activity b y small and m edium-sized enterprises emerged as an important mechanism by which the colonial economy expanded both in scale and scope. + + + 8 INTRODUCTION INTRODUCTION This thes is discusses how an economy , still in its infancy, struggles, adapts, copes with, and rises to the challenges of economic growth. What are the means such an economy uses to achieve this end? It is argued that, in the latter part of the nineteenth and early twentieth centuries, an important mechanism by which these aspirations were realised in the New Zealand economy was entrepreneurship. Structural changes in the economy , such as rapid population growth, technological innovation, the isolation of regional markets , infrastructure investment, business structures, immigration, and fis cal policy provided a fertile seedbed for the entrepreneur. S imilarly, entrepreneurs themselves displayed characteristics that pushed this economy forward; their willingness to bear risk, invest in new technologies , commence multiple business ventures, and a tendency towards bus iness development, were the kinds of behaviours suited to a new economy searching for viability. A few large-scale capitalists , operating monopolistic or o ligopolistic enterprises, would have been an alternative pattern of development. A few large, capital-rich firms did emerge in the economy in industries , such as wool processing, gold-extraction , meat processing, shipping, and saw milling. But these firms were not the majority. The dominant organisational form in the colonial economy was the small or medium-sized enterprise-the family firm, pflrtnership , or sole-proprietorship . This type of organisation, with its ability to undertake commercial activity on limited funds , its organic management structure, and its speedy decision-making capabilities was well suited to the colonial economy. Through the actions of large numbers of enterpris ing individuals the economy expanded. 9 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT While not uniform in character, the period 1880-1910 showed a number of common features and this made it a coherent subject for this research. In the period under review, there was generally a low level of government involvement in the functioning of the business environment, low rates of taxation, few barriers to overseas trade, and import duties were used primarily as a means to finance government expenditure rather than being used as an artificial mechanism to protect local industries. The counu)! also experienced sizeable influxes of immigrants (something that remained a feature of the New Zealand economy until the mid-1920s) and a continually positive population growth. This thesis draws on two mam sources of material. Firstly, it makes use of economic data pertaining to the period as well as other primary sources; secondly, it uses a case analysis of 133 entrepreneurs who were active in business ventures during this period. Unless otherwise noted, statistical information presented in this thesis was derived from the CelW/J or StatiJ ticJ of New Zealand, and is not usually referenced. In addition, for the sake of style, where he appears in the text and does not refer to a particular entrepreneur it also encompasses the gender equivalent of Jhe. This thesis consists of nine chapters grouped as three parts. Part One consists of a single chapter, which deals generally with the idea of entrepreneurship. It examines the contributions of economic and sociological writers to this field of study. Part Two, entitled 'The Entrepreneurial Economy', consists of three chapters that investigate some of the structural characteristics of the colonial economy. Chapter 2 considers the general nature of the economy between 1880 and 1910. Chapter 3 develops this theme. It investigates government activity over the period in relation to entrepreneurship, discussing the influence of bonus schemes, fiscal policy, and public works spending on the development of new enterprises. Chapter 4 examines how innovation assisted the expansion of the economy, particularly in relation to the export trade. Part Three of the thesis, 'The Entrepreneur in the Colonial Economy', consists of four chapters and moves from considering the economic context to the actors at work in tl1at context. Chapter 5 offers a bridge between the macro-view of Part Two and the micro-view of Part Three. It introduces the use of case analysis in business history research examining the particular methodological issues that arise from this type of investigation. Chapters 6-8 are based on the fmdings of the case analysis. Chapter 6 examines immigration and its relationship to business development. Chapter 7 considers how entrepreneurial activity might develop in an economy with limited capital markets. 10 INTRODUCTION Chapter 8 presents the findings of the case analysis in relation to entrepreneurial business strategy, venture activity, and business failure suggesting a model for the life cycle of the entrepreneur. A conclusion follows, which summarises the main findings of the thesis, limitations, and areas for further research. NOTES ON SOU RCES Trade statistics, industrial data, banking statistics, shipping statistics and population statistics were collated for the period from Census, St at ist ics of New Zealand, and the F acto ry all d IndtlJtrial Stati stics Yearbook.l These provided a rich source of commercial information on changes to exports and imports, industrial capital, shipping, migration, public debt, territorial revenue, public works, customs revenue, banking liabilities and assets, postal and telegraph servlces. This information was entered into spread sheets then analysed. Other official sources used for this research included the New Zealand Parl iamentary Debat ej' and the Appendi ces to t he Journals of t he Hot/se of Represent atives, which contained reports from government departments, select committees, and reports of royal commissions. Particularly helpful were the annual reports on immigration and public works, railways, and colonial industries. Also useful were sporadic reports on industries such as flax, fishing, and forestry. Even over the relatively short time span of this study, drawing conclusions from official statistical publications was not straightforward. The Stat ist ics of New Zealand were first published by the Government in 1 858 (although they date back to 1 854) and annually thereafter to 1 920. After 1 920, the StatiJtics of New Zealand was split into several volumes including the Factory and Industn'al St at istics Yearbook. The main feature of the original S t at ijjics of New Zealand was trade statistics; these included summaries by province, class of good, and destination. How government statisticians defmed particular classes of goods, for example drapery, was subject to change-usually without explanation to the reader of what the new classes of goods might represent. In the 1 870s, for example, drapery included fabric arranged in loose folds, ribbons, laces, cottons, threads, tailors trimmings, tablecloths, and haberdashery. 1 The New Zealand Ojft,ia! 'r'ear Book, first published in 1892, presented much of this statistical information in a more aggregated form. However, it proved more relevant to tllis study to use tlle statistical sources mentioned. 1 1 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT By 1910, drapery also included woollens. Yet, it was difficult to work out what proportion of the 1910 figure related to the earlier category, and what amount related to woollens. Making comparisons between earlier data and goods imported after 1920 was almost impossible; Statis tics of New Zealand ceased classifying goods by the principal articles in each class and adopted the British system of import and export classification. The industrial and occupational sections of the Census were particularly useful for this research. These gave statistics on the number of industries, number of workers, wages, motive power, capital invested in fixed assets, yearly output, and value of production. Industries, such as brewing, flax mills, and grain mills were covered in detail by the censu s from 1871; industries, such as printing, coach-building, boot and shoe manufacturing, aerated water manufacturing, saw-milling, etc., received detailed reporting from 1881 onwards. Censtls statistics on industrial manufacturing were collected from 1867 onwards in conjunction with the population Census in 1867, 1871, 1874, 1878, and 1881; then every five years after this until 1918-1919. From 1919 onwards, the collection of industrial statistics was undertaken annually. Industrial statistics identified a factory as an establishment engaged in the manufacture, repair, or preparation of articles for wholesale or retail trade, or for export, which employed at least two hands or used motive power. While this included works like breweries, aerated water producers, sawmills, coach builders, flourmills and the like, it excluded bakeries, butcheries, laundries, smithies, waterworks, retail shops, wholesalers and indenters. Large numbers of small establishments were also excluded from the census after 1920. Prior to this date, jewellers, watch-repair, boot, shoe and saddlery repair (and like trades), were included, even if they only had a proprietor. After 1920, these industries were not included in the census. Nor were establishments engaged in dressmaking and millinery (unless manufacturing wholesale), bespoke tailors, tea blending and packing, bottling liquor, stone quarrying and clUshing, asphalting and monumental masonry, or plumbers or joiners who made their own joinery for building contracts. This was done, as was claimed, to bring the statistics in line with those collected in other parts of the Empire. The cumulative effect of these changes was to decrease the number of establishments submitting returns in the 1921-22 year by 624. Nevertheless, even the larger figure was still an approximation of factory and industrial activity, as firms that had branch establishments were only counted as one establishment for the purpose of Censu s 12 INfRODUCTION returns. For instance, Ross and Glendining, owners of the Roslyn Worsted and Woollen Mills and a clothing factory in Stafford Street, Dunedin, would be returned as having only one business premise instead of two. It is pure guesswork to ascertain the impact that this had on estimates o f the size of New Zealand secondary industry. Such selective counting annoyed parts of the community. In 1880, the New Zealand Herald proudly listed some �f the manufacturers and works of the colony as an example of progress; the paper made the comment that the list had been, ' compiled from official sources , but owing to whims of the statistic collectors , some returns have been entirely omitted.'2 There were no official statistics on the size of the retail industry in New Zealand prior to the twentieth century. J .A. Dowie lamented this in his studies on New Zealand inves tment between 1871 and 1 900, and was forced to estimate the size of commercial capital on the basis of residential capitaP Dowie's figures are useful but limited. They make no allowance for working capital, and likely underestimate the size of the commercial sector. Making further estimates as to the size of the commercial market (retail shops, offices, warehousing) might be possible from occupational statistics, although figures before 1886 do not allow a distinction between the employed and employers. Alternatively, it may be more accurate to estimate the size of the retail sector as a p ercentage of total commercial activity relative to the size of the industrial s ector. Some figures could possibly be reconstructed from licensed establishments as in dentists, pharmacists , auct ioneers, and taverns as a proportion of the total commercial community. 4 Whatever the creative measure used, it would be a difficult task liable to errors. Calculations of value also vary between government publications. The Statlstics of New Zealand quoted the value of imports at their market value in the country of exportation plus 10 percent, and for exports, the value was given as the FOB cost to the port o f departure.s Conversely , when measuring the value of factory production, the 2 New Zealand Herald, 8 January, 1880, p.6. 3 J.A. Dowie, 'Studies in New Zealand Investment 1871-1900', PhD thesis, Australian National University, Canberra, 1965, pp. 76-80. 4 It appears a business licence was required to trade in the 1870s, and paid to the provincial government. \'\1hat is not clear is how widespread this was, nor if it was widely enforced. Business Licenses were discussed during the debate on the Hawkers and Pedlars Bill. Business Licenses were local revenue and it appeared that a trader who took out a license on the gold fields to trade, had to take out a license for every store he was operating, even though there might only be a gully between them. See NZPD, 42, July 13 (1882), pp.286-287. 5 It also appears that d1e exporter could arbitrarily set a value and dus would be taken as d1e value of the exports. 1 3 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT census tended to give a wholesale value, not a market value. Goods that were exported or imported always appear to be higher in value as a result. Therefore, comparisons between the relative sizes of the different commercial sectors, for example, the value of timber or brick production versus the value of gold or agricultural exports, need to take this into account. In this thesis comparative figures have been adjusted to export prices, at times, to enable a more realistic comparison between industrial activities. When figures have been adjusted, this is indicated in the accompanying text. The basis for the case analysis of entrepreneurs that forms Part III of this thesis is discussed fully in Chapter 5. In brief, a case group of 133 entrepreneurs was selected who were active in the period 1 880-1910, which permitted an opportunity to venture generalisations about the nature of entrepreneurial behaviour during this period and ascribe characteristics to the colonial entrepreneur. The selection process for deciding who was, and who was not, an entrepreneur is also discussed in Chapter 5, however one item from this process warrants elaboration at the outset of this thesis: the problem of farmer. Is the farmer an entrepreneur, or is he not? Farmers, in light of the peculiarities of the New Zealand pastoral economy, present something of a quandary. For one could easily venture an argument that farmers in New Zealand played more than just a producer role in the trade cycle-they accrued wealth from risk-taking activities and were vital in the current of colonial economic expansion. It is obvious, too, from the work of Jim McAloon, that there was not an easy divide between urban and rural wealth; farmers could, just as easily as city-dwellers involve themselves in entrepreneurial ventures and some did. Farming money moved between land and enterprise, between agriculture and commercial pursuits.6 These things said, however, as the reader will soon discover, traditional economic thinking quickly discredited the farmer as an entrepreneur. While Richard Cantillon explicitly included farmers as entrepreneurs on the basis that the farmer assumed risk not knowing the eventual price his goods would receive in the market, others moved away from this line of thinking. Turgot and Say, for example, did not include farmers as part of the entrepreneurial class, as they assigned entrepreneurs a function as the interface between producers (the farmers) and consumers. It was the buying and selling of commodities-the unique knowledge of trade and enterprise required at this point in the 6 See McAloon, Jun, No Idle Rich: the IPealtl?), ill Cal1terbury alld Otago, 1840-/914, Duneclin: University of Otago Press, 2002. 14 INTRODUCfION market system-that gave the entrepreneur his defining features. Other classical economists developed further characteristics of entrepreneurial behaviour and economic function, as are outlined presently. Contemporary economists, also, have not included farmers in their discussion of entrepreneurship and economic process and the reason for this appears straightfolward: the farmer is not a firm. A farmer is not a separate economic entity in the same way that a firm is, nor does a farmer enjoy the same capacity to expand his enterprise in tl�e same way that a firm does. Economic tlmking, and economic thinking on the entrepreneur, has therefore largely concerned itself with the economic entity that an entrepreneur creates: a firm.? For tl1ese reasons and for reason of comparability with other large international studies of entrepreneurs using case analysis (who also did not include farmers as entrepreneurs), it was decided not to include farmers in the present study.s The following chapter examines the idea of entrepreneurship and how clUs idea developed over time. It considers the work of classical and neo-classical economists, and concludes with a discussion about New Zealand research on entrepreneurship and business history. ... ... ... ... ... 7 See for example, Casson, Mark, Tbe Entrepreneur: An Economic Tbeory, 2nd edn., Cheltenham: Edward Elgar Publishing, 2003. 8 See Sarachek, B., 'American Entrepreneurs and the Horatio Alger Myth', Journal of Economic History, 38 (1 978), pp.439-56, for an example of such a study. Others are discussed in Chapter 5. 1 5 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT PART I THE IDEA OF ENTREPRENEURSHIP FROM UNDERTAKER TO ENTREPRENEUR 1 FROM UNDERTAKER TO ENTREPRENEUR: A REVIEW OF THE LITERATURE The purpose of this chapter is to gIVe a general sununary of the idea of entrepreneurship as it relates to political economy.! In particular, this chapter will examine the attributes and functions that economic writers have ascribed to the entrepreneur. The early classical economists, including Adam Smith, developed an informed understanding of the attributes and behaviours of the entrepreneur that distinguished the entrepreneur from other economic actors. This distinction was perhaps best seen in the work of the English economist, Alfred Marshall. In addition, this chapter will present a brief overview of some of the historical and sociological New Zealand literature as it refers to the entrepreneur. Finally, this chapter presents a preliminary definition of how we might conceive of the entrepreneur in the latter part of the nineteenth centmy and early part of the twentieth century. ! The phrase political economy in this thesis is used to describe d1e means, institutions and philosophy by which wealth is created in an economic system. I use the phrase in d1e same sense as it was used by ] .S. Mill. In elaborating on political economy Mill noted: 'The conception, accordingly, of Political Economy as a branch of science, is extremely modern; but the subject wid1 which its enquiries are conversant has in all ages necessarily constinlted one of d1e chief practical interests of mankind, and, in some, a most unduly engrossing one. That subject is Wealth. Writers on Political Economy profess to teach or to investigate, d1e nature of Weald1, and d1e laws of its production and distribution; including, direcdy or remotely, the operation of all d1e courses by which the condition of mankind, or of any society of human beings, in respect to dus universal object of human desire, is made prosperous or d1e reverse.' As such Mill's definition includes the d1emes of population, money, trade, philosophy and d1e operations of state, markets, firms and individuals and d1e institutions supporting d1em. See Mill, Political Economy, Preliminary Remarks, B. 1 7 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT L'ENTREPRENEUR The idea of entrepreneurship is not new. The O:'1ord EngliJb Dictiollary defines the entrepreneur as one who 'undertakes an enterprise; one who owns and manages a business; a person who takes the risk of profit or 10ss'.2 This is the word's meanmg m regards to political economy; its use in everyday language referring to commercial activity seems to date from around the 1950s.3 Of French origin, entrepreneur can be literally translated as 'to undertake', 'to launch upon' or 'to embark upon,' coming from the verb 'entreprendre.' In France, Savary's Dict iollnaire U nivm el de Commerce (1723) defined an entrepreneur as one who undertook a project; a manufacturer; or a master builder. In contemporary French life the word has retained this meaning.4 An 'entrepreneur en ou de batiment', is a building contractor; an 'entrepreneur de travaux publics', is a civil engineering contractor; an 'entrepreneur de transports', is a haulage contractor. Of more sombre use is an 'entrepreneur de pompes funebres', an undertaker or funeral director. The most common rendition in French life is in reference to a contractor-one who coordinates people and materials to construct a building. The word has assumed negative connotations when it is used in reference to a businessman. It describes an adventurous risk-taker, whose career climb through speculation and business dealing is often as meteoric as his eventual fall from grace. In French commercial life today it is more respectable to be called an industrialist than an entrepreneur. HISTORICAL ROOTS When it was first used in the Middle Ages, the entrepreneur referred to a person who 'assumed some task', who 'got things done.' It was the description used of a cleric who oversaw the construction of an abbey or cathedral. The cleric, whose role included procuring labour and materials, had to ensure that the project was completed, though he bore no fmancial risk. He assumed the functions of planner, negotiator, overseer, contractor, inspector, employer, and manager.5 2 Oxford Englisb Dictionary 2nd ed. Preparl.plorationJ in Entrepreneun'al Hzstory. IO} Since then, interest in entrepreneurship as an area for academic research as well as a topic for popular debate has multiplied. One of the leading writers has been the Austrian-born economist Peter Drucker. Drucker has reinforced Schumpeter's view of the entrepreneur as the innovator and the exploiter of change in society. Drucker defIned the entrepreneur as someone who: ' . . . see(s) change a s the norm and a s healthy. Usually they d o n o t bring about the change themselves. But-and this defmes entrepreneur and entrepreneurship-the entrepreneur always searches for change, responds to it, and exploits it as an activity. ' lo4 Karl Vesper, best known for his book New Ventllre Strategies , acknowledged that while generalising from studies of groups of entrepreneurs could be useful (as it could show how successful, or not, particular courses of action were) , the experiences of every 101 Interestingly, Schumpeter regarded someone as being entrepreneurial at the start of their economic activity; as the firm developed, the entreprent:ur turned to more managerial functions. He did not conceive that people might be entrepreneurial multiple times over their life span. 1112 ibid., p.79. I U3 In 1 969 the journal's title was changed to E;s By 1 880, annual government .revenue from its various sources was £2,1 33,759. By 1 900, this had increased to £5,580,385. The average annual revenue over the period was £3,963,474. However, regardless of the increase in funding, the proportions of revenue and expenditure between 1 880 and 1 900 directed to the various activities of the government were surprisingly consistent. On average, 47 percent went towards paying the civil service. So, for example, in the 1 888 year, and this is only given by way of example, expenditure on the civil service (including the postal service, army, education, railways, courts, trade and customs) was £2,026,741 . Interest on the colony's loans, which in 1 888 stood at around £30 million, was £1 ,765,667. Other expenditures that year included £1 5,597 on immigration, £1 98,347 on road construction, £22,984 on extending telegraph lines, £76,825 on lighthouses, harbour works, and defences, and £90,328 on additional public buildings. There were also smaller amounts spent on water races, rates on native lands, thermal springs, and defence.36 35 For a discussion of Australian investment in public utilities and infrastructure during the 1 880s see: Davidson, Graeme, 'Public Utilities and the Expansion of Melbourne in the 1 880s', Australian Economic History Review, 1 0: 1 (1 970), pp.169-1 89. 36 The choices for either raising income or decreasing expenditure for the government were limited. Increasing railway charges was not possible as the government was consistently barraged about the limiting effect that high freight charges had on industry. TIllS was the case as wool, and especially grain were transported via rail, as was timber, earthenware products and most other goods. Other revenue, as mentioned, came chiefly from stamps and postal revenue, and then a variety of smaller charges, the marine, beer duty, etc. Expenditure could viably have been decreased on public works, but wasn't. One reducible item was civil service expenditure. As a result, o fficers were redeployed, vacancies were not filled, and those who retired not replaced in an effort to reduce expenditure. It had the desired impact; from 1 889 to 1 893, expenditure on the civil service as a percentage of total government expenditure dropped from around 56 percent in 1 885 to between 47 and 48 percent. By value tllls was a drop from £2,121 ,529 in 1 885 to £1 ,891 ,921 in 1 888. 1 05 EN7REPRENEURSHIP AND ECONOMIC DEVELOPMENT F IGURE 4 GOVERNME T REVE DE AND E XPENDITURE : 1 8 8 0 - 1 9 0 0 £6,000,000 £5,000,000 £4,000,000 £3,000,000 £2,000,000 -- Revenue £1 ,000,000 -- Expenditure £- Source: Compiled from Government Financial Statements 1880-1900 The most sizeable expense between 1 880 and 1 900 was that directed towards interest and sinking funds. It reached a high in 1 888, when 50 percent of the government revenue was spent on interest payments (£1 ,765,667), and a low in 1900, when 31 percent (£1 ,749,393) of government revenue was spent on interest payments. The average over this period was 39 percent.37 It might be fair to assume that such financial pressure to meet interest payments arose from the over-zealous loan-spending during the Vogel years. Numerous accounts of the colony's depression seem to support the claim that the intensive spending on public works in the 1 870s had more than doubled the colony's debt, resulting in a legacy of crippling interest payments. W.]. Gardner in the Oxford History of ew Zealand, was abrupt on this point: The aftennath of the crisis of 1878-79 was a severe down sizing which went on into 1 880 without any sign of recovery. A long period of stagnation or near-stagnation followed in many parts of the economy, lasting until 1 895. These years, known in the past as 'the Long Depression', were characterized by: low wages, unemployment, and poverty; low prices for primary eJo..-ports which inhibited the progress and diversification of farming; the failure of secondary industries to keep pace with urban population growth; the heavy 37 Calculated from financial statements, AJHR, 1 880- 1900. 106 POUTlCAL ECONOMY and unrelieved burden of debt-repayment which clogged both public and private development . . . JH But there is little tn these statements that can be sustained. It is true that politically the rhetoric changed, and in the 1 880s it became almost fashionable for politicians to deride Vogel's unbridled spending in the 1 870s. Yet, their talk bore no resemblance whatsoever to government expenditure occurring during their own administrations. Claims that the public works spending of the Vogel years stopped in 1 880, or even slowed down to a marked degree, are a total historical inaccuracy. And the facts, presented in the following section, offers an explanation for the apparent dichotomy in the 1 880s, during which depression was interrupted with economic advancement. The logic that propelled Vogel's immigration and public works programme has already been touched on in this chapter. The construction of roads, railways and telegraph lines both enabled and encouraged settlement. It provided jobs and stimulated secondary industry as public work activities relied on timber, bricks, stone, earthenware even engineering services - all from the local economy. The supposed financial outcome of this initiative has been much quoted by historians; the colony's indebtedness rose from £7 million in 1 870 to £22 million by 1 879. In 1 880 the whole scheme was dropped in favour of less audacious approach. It was not. The political rhetoric was just that. Grey was successful in his bid to secure a £5 million loan in 1 879 and this money was applied to roads, railways, harbours, lighthouses, public buildings, jails, custom houses, school buildings, hospitals, domains, drainage, gold field water races, and dams as it had been done in the 1 870s. The enthusiasm with which loans were raised for public works during the 1 880s made the V ogel years read like a preamble. 3H Gardner, WJ, '"\ Colonial Economy', in The O:.qord History of New Zealand, 2"d ed., Geoffrey W. Rice (ed.), 1\uckland: Oxford University Press, 1 992, pp.75. See too an earlier comment in the same chapter: 'In the late 1 870s government borrowing was used to stimulate the sagging economy, which could not support the load of debt unaided, especially in view of falling export prices. In attempting to get itself out of debt, the colony got further into debt.' p.7 1 . Gardner is not alone is this kind of statement, Borrie made a similar abrupt claim in Immigration to New Zealand. 107 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT The New Zealand Loan Act, 1 879 brought in £5 million. The New Zealand Loan Act, 1 882, brought in another £3 million. That same year, the New Zealand Colonial-inscribed Stock Loan Act, 1 882 and the North Island Main Trunk Railway Loan Act, 1 882 b etween them raised another £1 .25 million. This was followed two years later by another New Zealand Loan Act, 1 884 for £1 .5 million and the District Railways Purchasing Acts, 1 885-86 raising £479,487. In 1 886, another New Zealand Loan Act was passed for £1 ,325,000 and another in 1 888 for £1 ,000,000. By 1 899, £29 million had b een raised from loans for public works, and an additional £2.7 million diverted from the consolidated accounts and other funds. In total, some £32,056,606 was raised. This money was not spent as the loans were raised. Or more precisely, once the loans were raised, the monies were fed into the economy at a reasonably constant rate. It is not far short to state that in each decade approximately £1 ° million was diverted into public works. Ascertaining an exact amount that the government spent on public works-the constluction of roads, bridges, public buildings, hospitals, gaols, custom houses, dams, telegraphs, water races, school buildings, harbours, light houses-is not an easy task. It was not a discrete column in government revenue or expenditures. Much of the public works spending was assigned out of the pub lic works loan account, and this was presented each year with the Financial Statement. However, monies directed to public works also came out of the consolidated funds under headings such as public buildings, domains, and in some years, the category pub lic works. Monies were also paid to local bodies and road boards, who in turn directed these funds towards pro jects. In addition, it is clear from the 1 881 Financial Statement and subsequent breakdowns of departmental expenses that school buildings, railway buildings, and hospitals were constructed out of the annual appropriations for those departments. 108 POUTlCAL ECONOMY F I GURE 5 MA l EXPE D ITURE ITEMS PUBLIC WORKS : 1 880- 1 900 [1 ,200,000 £1 ,000,000 £800,000 £600,000 £400,000 £200,000 -- Cooscruction of Railways and other works connected with railway ex tensio n -- Roads --Public Buildings S ollm: Compiled from Government Financial Statements 1 880-1900 An initial analysis of these figures (without analysing individual department returns) showed that the combined spending on public works out of consolidated funds and loan finance in 1 880 was £1 .5 million. In 1 88 1 , it was £1 .2 million and reduced to £909,853 in 1 882. Then until 1 887, there was a sustained burst: £1 .2 million in 1 883, £1 .5 million in 1 884, £1 .2 million in 1 885, £1 .5 million in 1 886, and £1 .6 million in 1 887. In 1 888, public works spending dipped below one million pounds per year, reaching a low of £555,536 in 1 890, then it increased steadily again towards the million pound mark by the end of the century. It is worth remembering that at the same time developmental funds were being diverted into immigration. So for instance, while the funds directed towards public works in the 1 890s were under a million pounds per year, spending on immigration and land purchases increased dramatically from 1 893 onwards. In short, there was a large and sustained expenditure by government on infrastructure and construction projects from 1 870 to the end of the nineteenth century, with monies diverted towards this from multiple sources. The public debt of the colony increased as these loan monies were spent. The net public debt of the colony in 1 870 was £7,384,547 (approximately £29 per head of 1 09 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT population) .39 Over the term o f the Vogel programme to 1 879, this trebled to £22 , 153,079. In the 1 880s, the debt increased even more than in the Vogel years. By 1 889, the net public debt of the colony stood at £37,1 62,89 1 , an increase of £15 million. It rose another £9 million by 1 899 to £46,080,727; £61 per head of population. These figures do not include the nearly £7 million debt of local bodies. Had such amounts of money been raised with the intention of paying for services to keep basic mechanisms of the colony's government in progress, one might say that this had been wanton expenditure by a country struggling to keep itself financially buoyant. But this was not the case. The primary target o f this indebtedness was public works. Even a conservative estimate40 shows that by 1 899, £1 6 million had been spent on railways, £2.1 million on immigration, £2.3 million on public buildings, £5 million on roads, nearly £2 million on land purchases and lesser amounts on coal mines, thermal springs, lighthouses, harbour works and defences, telegraphic extensions, native land rates and other expenses. The point of this argument is, that if the Vogel era with its £14 million injection into the economy stimulated economic activity, then the same argument holds true for the two decades that followed. The government continued its public works spending programme, regardless of which Premier was in power. 39 Statlsli,> of New Zealand, 1 890, p.253. 4 0 I term such estimates conservative, as dlese expenditures all relate to government expenditure from loan monies on public works. They do not include the amounts spent on buildings and construction from the consolidated fund. School buildings were built from dle annual allocation to the Education Department as were hospitals from ilie Hospitals and Charitable Institutions budget; oilier public buildings and domains were also constructed from funds diverted from the consolidated account. 1 10 POUTlCAL ECONOMY F IGURE 6 PR I MARY AND PR IVATE S CHOOLS I OPERATIO 1 8 7 4 - 1 9 1 0 3000 2500 2000 1500 1000 500 -- Primary and Private schools Source: Statistics of ew Zealand - 1 874-1910 While there were clear social benefits, as the number of schools and hospitals and other community services increased (Fig. 6), the marked spending on public works had two further economic effects. Firstly, the increased harbour facilities, roads, railways, and bridges facilitated commercial activity, enabling economic expansion; secondly, the mechanism for enacting the public works programme was to use a tendering process with private firms.41 Had the public works programme been carried out by a large public works department, with its own bureaucracy, staff, and equipment to undertake the works, then the primary economic benefit for the colony would have been job creation. In addition, a follow-on demand would have been generated in secondary industries for construction materials . However, as private firms working in a competitive environment undertook the government contracts, it might be argued that the primary economic outcome was not job creation, but enterprise. As firms undertook these projects, wealth, skill, management, organisational expertise, capacity and innovation were all added to the 41 Lionel Frost suggests a similar symbiotic relationship between the private and public sector in Australian colonial economic development. He stresses that the private and public sector were not separate entities, but that public investment in infrastructure aided private capital fo=ation. In particular, suburban property developers were advantaged by urban infrastructure and farm development increased rail receipts and tax revenue. See Frost, Lionel, 'Government and the Colonial Economies: An Alternative View', Australian Economic History Review, 40: 1 (2000), pp.71 -85. 1 1 1 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT private sector. New fIrms came into existence that had no previous form, and existing fIrms increased in capability and capacity. Given a tender process for work, fIrms could increase in scale without the necessity of large amounts of capital. Increased equipment needs and additional labour could be written into the tender document regardless of whether the fum had these kinds of resources to begin with. In some cases, winning government tenders might enable a small fum to expand quickly, such was the case with the Auckland fum of Winstones who won contracts for the reclamation of the Auckland waterfront.42 It also encouraged an industr1 of contractors. For example, in Dunedin in 1 887 there were 5 1 building contractors and 38 firms listed as general, roading, and bridge building contractors.43 A brief survey of the railway contracts let by the Public Works Department in 1 885 revealed the depth of this kind of industry. The following examples are only part of the total list of contracts awarded that year, and are only for railway work, not any of the other classes of public works. The list is revealing in the variety of projects that were being undertaken as well as the kinds of firms undertaking this work. The construction work was not dominated by a few large concerns. Although some were well known, there were a large number of fums that we have no record of today. Yet, at the time, they were undertaking significant projects that would have required the organisation and direction of large amounts of men and equipment. Contractor John O'Brien won the contract to construct the Cambridge station building at a cost of £5455 while contractors, Philip Cooper and D. Henderson, supplied the Hamilton and Cambridge line with water. Bridge works costing £4924 around Hamilton were undertaken by Hector Reid; H. McKenzie and Co., won half the contract to construct the Awapurua Bridge on the Wellington-Woodville line at a cost of £7412. The contract to construct the Johnston Street Wharf in Greymouth was let to J . Goodfellow at a cost of £5,234. An extension of the line at Lake Forsyth was undertaken by Stocks and Wallace for £6,440, as well as bridge work at Hurunui for another £9,190. Dunedin engineers, Kincaid, McQueen and Co., won a tender for supplying air locks and pneumatic apparatus, as well as the contract to supply iron piers and a station overbridge to the Dunerun railway station at a cost of £1 3,826. Ormand brothers won a tender for bush felling in Tahoraite, while Alexander and McFarlane 42 See: Wins tone Ltd., Tbe WilJStone Group r:/ Companies, Auckland: Winstone Group, 1 974; Simpson, Frank, Tbe First Century: A Centenary Review of Winstone Limited, Auckland: \'Vinstone Limited, 1965. 1 12 POUTIC4L ECONOMY constructed station buildings on the Napier Woodville line. Alexander O'Donnell busied himself with a contract to cart 1 3,000 sleepers for the Foxton-New Plymouth line. R.S. Sparrow and Co., constructed the Wingatui Viaduct at a cost of £1 3,922.44 Miller and Smillie won a contract for £1 8,958 for formation of the line at Hurunui. D. McKenzie had one for £48,839 for formation of the Otago central line around Wingatui and R. Meikle and Co. , had a contract of similar amount for line formation around Nenthorn. Meanwhile, in Auckland, the contract to build Auckland Passenger station was let in 1 885 to William Ahern for £12,1 68.45 Economic benefits of spending like this on public works reached wider than the firms and contractors involved and their immediate labour. Public works construction triggered a secondary demand for locally produced building materials. Quarrying, brickworks, saw-mills, Jomery manufacturers , coppersmiths, earthenware plpe manufacturers, tile manufacturers, cartage firms-all experienced a follow-on demand. This is discussed in more detail in a subsequent chapter. But, for instance, sawn timber production that had been at 1 43 million feet in 1 88 1 , by 1 886 was 206 million feet; similarly, brick production, that had been 28 million per year in 1 88 1 , had increased to 34 million by the time of the 1 886 census.4G CONCLUS ION This chapter has examined how the State sought to achieve the longer-term aims of economic viability and wealth creation in the colonial economy. With limited capacity for industrial development, the State assumed a role as facilitator of economic expansion rather than instigator. It undertook this role in the areas of bonus schemes, government fiscal policy, and public works, the most important of which was public works. Initially, such a move was bound up in the difficult economic conditions at the s tart of the 1 880s that necessitated establishing a more diverse economic base in the economy. By the end of the nineteenth century, however, in part as a result of government encouragement of enterprise and in part though personal initiative and changes in the general international economic environment, this question had resolved. 43 From an examination of Stones Postal Dirertory, 1 887. 44 Many of these were significant contracts, bearing in mind that a years wage for a tradesperson/labourer would be in the region of £50 to £1 00 per annum. 45Schedule of Railway Contracts, AJHR, 1 885, Appendix -C, D-1 , pp.22-24. 46 There were no figures available for quarrying at tllis time. 1 1 3 ENTREPRENEURfHIP AND ECONOMIC DEVELOPMENT Trading conditions in the colony had improved considerably, new export markets had opened up as a result of technological innovation in refrigeration and dairy production, and the industrial base of the economy had broadened in scale and scope. Spurred on by investigations by colonial industry commissions, bonus schemes were developed as a direct method of encouraging investment in new industries. These resulted in the establishment of a number of industries, such as paper production and woollen milling. In each of these industries, following the establishment of the initial fIrms, other fIrms came into being without any form of government assistance. Industries also petitioned the government for protection in the form of customs duties . Some of these were successful, others like the Auckland umbrella manufacturers who sought the duty removed on silks, and the distillery industry that sought to have protection to manufacture purer spirits manufactured from wheat, were not. The government was clearly informed that to reduce the duty on some goods, while it might cause advantage for the immediate manufacture, would cause harm to other sectors of the economy.47 The government took direct action in respect of the dairy and cheese industry. Sensing a new industry after the successful shipment of frozen meat and dairy products to the United Kingdom, the government appointed an advisor late in 1 882. The advisor's role was to assist those who wanted to establish cheese and dairy factories. How successful the advisor was is unclear, though he toured various districts giving lectures on setting up a butter and cheese factory. He was paid the substantial salary of £200, permissible as this was regarded as an important industry and the Government were justifIed in offering it every possible encouragement and facility.48 47 The fostering of local industries was also reinforced as a useful instrument to assist the credit rating of the country. \Vhen giving his Financial Statement in 1 883, Major Atkinson spoke with some pleasure at the terms that had been recently been agreed over a new loan for £100,000 on the English market. He regarded this as the best afforded yet, giving as some indication that the stock that had gone out through the Bank of England was quickly trading above par. Atkinson's surmised that as long as the country's affairs were prudently managed to promote the settlement of land alld the development of local industries, then the government would be able to raise as much as it needed on reasonable terms to undertake public works. Atkinson was also aware of the import substitution effect, and he made it clear that the encouragement of local industries reduced the need for imported goods, thereby releasing funds that were previous spent on imports for other activities. NZPD, 44 (1 883), p .216 . -18 NZPD, 45 (1 883), p .4 (Thomas Dick). See also NZPD, 45 (1 883) p.35 (William Watt) for comments on lectures on West Coast of North Island. 1 14 POUTICAL ECONOMY Government revenue came primarily from two sources, customs revenue and railway receipts, with customs revenue providing the majority of revenue. The government did not view customs duties as part of a protectionist policy and were concerned that local industry and promoters develop competitive industries even in their early stages. In addition, an inducement to commence new ventures was evident in the customs structure whereby machinery and plant for industry were exempt from duties. A direct tax on incomes and profits from trade and commerce was not used until 1 891 , with the effect that the profits from enterprise remained in the hands of promoters. Public works spending by the government had a number of trickle-down effects in the colony's economic system. Public works spending was important as it injected funds into the economy creating jobs. There were other positive benefits to be had from public works spending but these depended on what monies were spent on, how much was spent, how constant any spending was, and what the mechanism was for spending such money. Government building contracts offered considerable work for the building industry as courthouses, jails, customhouses, asylums, schools, hospitals, police buildings, and harbour facilities were constructed throughout the colony. At any time in the 1 870s and 1 880s, despite a recession, this programme of construction continued. Not only did these contracts offer scope for local contractors and [trms who tendered for the work, but they also stimulated the market for locally made building supplies. Brick works, earthen pipe companies, saw-mills and joinery firms continued to expand in number and output. While each of the three types of government involvement in the economy surveyed in this chapter (bonus schemes, fiscal policy, publics works), had specific outcomes, they had one economic benefit in common-enterprise. In differing measure each type of involvement encouraged either the expansion of existing firms, or the creation of entirely new firms. Bonus schemes, immigration, increasing population, low corporate tax, customs exemptions for industrial plant and machinery, public works spending, and a tendering process for winning government contracts, built up the basic infrastructure. These actions made trade and interchange easier, sustained the development of [trms, and created opportunity for new entrepreneurs to enter the market. In the chapter that follows, the role of innovation in economic development is considered in more detail. The frozen meat industry, hydraulic gold mining industry and 1 1 5 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT dairy industry are examined to investigate the ways in which innovation occurred as a process (through the actions of entrepreneurs) , as well as its effect on the structure of the colonial economy. + + + + 1 1 6 INNOVATION DYNAMIC 4 THE I N NOVATION D YNAMIC AT WO RK I N ECON OM IC EXPANSI ON Once innovation takes off, including in tlus not only the inventions themselves but also their successful marketing and profitable utilization, this facilitates and stimulates further innovative effort. The obvious connection is that the demonstrated profit opportunity is sure to attract other inventors, other investors, and other entrepreneurs whose task it is to ensure that invention is put to effective and remunerative use . . . In sum, innovative activity can be considered a cumulative process, in which there is feedback from one innovation to the next; once the free market has launched its innovation machine, the inherent s tlucture of the mechanism leads the machine to grow more powerful and productive with the passage of time. 1 This chapter discusses the role of innovation in econonuc development. In particular i t examines the way in which innovation assisted the colony's search for economic viability between 1 880 and 1 9 1 0. This was especially manifest in the export trade, where entrepreneurially-minded individuals pursued both product and process innovations that opened new markets and strengthened the colony's economic base. This discussion lends support to the claims of economist William Baumol who has argued that innovation (and not price) in the competitive market economy was the driving force behind economic expansion. We see evidence of this in the New Zealand economy during this period. However, this chapter will also demonstrate that it was not just the profit opportunity which attracted other inventions as Baumol asserted, but Carl Menger's notion of complementary goods was also a powerful mechanism for growing the 'innovation machine.' This chapter is divided into two parts. Part One gives a brief summary of the trading environment over the period of the thesis, discussing how the basic structure of 1 Baumol, Free-Market Illllovation MOI'hille, pp. 1 1 -1 2. 1 17 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT the economy changed as the colony moved from a continued negative trade balance to an export-led economic recovery. Part Two considers the effect of product and process innovation on export markets. Groups of entrepreneurs succeeded in creating new markets by exploiting technological advances in gold extraction, frozen-meat production, and dairy processing. As innovation expanded the industrial base of the economy, the provision of complementary goods and services was also stimulated in areas, such as engineering and shipping. This chapter argues that the movement behind such innovation was primarily the entrepreneur, rather than large-scale, established fums or government. INTRODUCTION : THE TR;\D ING ECONOMY It was with good reason that historians Gary Hawke, J.B. Condliffe, Keith Sinclair and W.B . Sutch centred their discussions of the New Zealand economy on trade.2 Trade was vital to any colonial economy if it was to import the materials it needed to pursue progress and export what resources or products it might have to ensure its economic survival. New Zealand had acted this way from its earliest beginnings as a colony. Since total trade (imports plus exports) was fust measured in 1 853 it had grown steadily. 3 In 1 853, total trade had been £901 , 109 and by 1 859 had reached £2 million. Total trade swelled five-fold over the next four years to £1 0 million as the population doubled due to gold discoveries in Otago.4 However, the large increases in New Zealand's total trade were not the result o f a vibrant export economy. Although wool, timber, and gold were all being exploited as export goods at this time, the rapid rise in the colony's total trade was being fuelled by an aggressive importing economy.5 2 See for example Hawke, G.R. The Making of New Zealand: An Economic History, Cambridge: Cambridge University Press, 1 985, pp.22-65. 3 Between 1 853 and 1 861 total trade increased on average 23 percent per annum. 4 The population rose from 71 ,000 in 1 859 to 1 64,000 by 1 863. 5 Condliffe provides a useful account of the alluvial gold rushes and its economic impact. See Condliffe pp.29-3 1 . 1 1 8 INNOVATION DYNAMIC TABLE 2 N EW ZEALAND TRAD ING F I G U RES : 1 8 5 3 - 1 880 Year Total Trade % Imports % Exports % Positive Positive chal�e chan�e change ImEorts EXEorts 1 853 £901 , 109 £597,827 £303,282 £294,545 1 854 £1,21 2,092 0.35 £891 ,201 0.49 £320,891 0.06 £570,310 1 855 £1 ,1 79,328 -0.03 £813,460 -0.09 £365,868 0 . 14 £447,592 1 856 £1 ,029,301 -0. 13 010,868 -0. 1 3 £31 8,433 -0. 13 £392,435 1 857 £1 ,362,388 0.32 £992,994 0.40 £369,394 0. 1 6 £623,600 1 858 £1 ,599,296 0 . 17 £1,141 ,273 0.1 5 £458,023 0.24 £683,250 1 859 £2,102,51 4 0.31 £1 ,551 ,030 0.36 £55 1 ,484 0.20 £999,546 1 860 £2,137,286 0.02 £1 ,548,333 0.00 £588,953 0.07 £959,380 1 861 £3,864,058 0.81 £2,493,81 1 0.61 £1 ,370,247 1 .33 £1 , 1 23,564 1 862 0,048,81 6 0.82 £4,626,082 0.86 £2,422,734 0.77 £2,203,348 1 863 £10,510,079 0.49 0,024,674 0.52 £3,485,405 0.44 £3,539,269 1 864 £1 0,402,322 -0.01 £7,000,655 0.00 £3,401 ,667 -0.02 £3,598,988 1 865 £9,308,1 95 -0. 1 1 £5,594,977 -0.20 £3,713,2 18 0.09 £1 ,881 ,759 1 866 £10,414,937 0. 1 2 £5,894,863 0.05 £4,520,074 0.22 £1 ,374,789 1 867 £9,989,285 -0.04 £5,344,607 -0.09 £4,644,678 0.03 £699,929 1 868 £9,41 4,946 -0.06 £4,985,748 -0.07 £4,429,198 -0.05 £556,550 1 869 £9,200,986 -0.02 £4,976, 126 0.00 £4,224,860 -0.05 051 ,266 1 870 £9,461 ,77 1 0.03 £4,639,015 -0.07 £4,822,756 0 .14 £1 83,741 1 87 1 £9,360,277 -0.01 £4,078, 193 -0. 12 £5,282,084 0. 10 £1 ,203,891 1 872 £10,333,6 16 0. 1 0 £5,142,951 0.26 £5,1 90,665 -0.02 £47,7 14 1 873 £1 2,075,058 0. 1 7 £6,464,687 0.26 £5,610,371 0.08 £854,31 6 1 874 £13,373,081 0. 1 1 £8,121 ,812 0.26 £5,25 1 ,269 -0.06 £2,870,543 1 875 £13,857,799 0.04 £8,029,1 72 -0.01 £5,828,627 0. 1 1 £2,200,545 1 876 £12,578,636 -0.09 £6,905,1 71 -0. 14 £5,673,465 -0.03 £1 ,231 ,706 1 877 £13,300,890 0.06 £6,973,418 0.01 £6,327,472 0 . 12 £654,946 1 878 £14,771 ,363 0.1 1 £8,755,663 0.26 £6,015 ,700 -0.05 £2,739,963 1 879 £14,1 1 7 ,7 1 1 -0.04 £8,374,585 -0.04 £5,743,1 26 -0.05 £2,631 ,459 1 880 £12,514,703 -0. 1 1 £6,1 62,01 1 -0.26 £6,352,692 0. 1 1 £190,681 Source: Statistics of New Zealand 1 853-1 880 For seventeen years between 1 853 and 1 869, the colony imported more than it exported. The trade de ficit was most noticeable between 1 854 and 1 864. During these eleven years imports each year were, on average, 1 30 percent greater than exports. An expanding population demanded a range of products that the infant economy was not yet equipped to produce. For the first time in 1 870, New Zealand achieved a positive balance of payments. This occurred again in the following two years, but it was a short-lived change in fortunes. From 1 873 to 1 886, the balance of payments repeated the same ingrained import-intense pattern that had characterised its early settlement years, as Vogel's immigration and public works machine surged forwards. The total amount expended during this short time gave some indication of an increasingly precarious financial 1 1 9 ENTREPRENEURSHIP AND ECO OMlC DEVELOPMENT situation. Total imports for the years 1 87 1 to 1 879 amounted to £62 . 8 million, whereas total exports were only £50.9 million. A structural change in New Zealand's trading pattern emerged in 1 8 80. Then, for the first time in seven years, exports were of greater value than imports; caused more by the 26 percent fall in imports that year rather than the 1 1 percent increase in exports. The trade figures the following year resorted to the normal pattern of imports greater than exports, but in percentage terms the difference between the two indices was falling and continued to do so. £30,000,000 £25,000,000 £20,000,000 £15,000,000 £1 0,000,000 £5,000,000 F I GURE 7 EW ZEALA D BA LA C E OF TRADE : 1 8 5 3 - 1 9 3 0 £O ���������������rlh������ -£5,000,000 -£1 0,000,000 -£1 5,000,000 -£20,000,000 Source: Compiled from Statistics rifNew Zealand: 1 853-1 930 Imports as a percentage of exports in 1 8 8 1 were 23 percent greater than the previous year; and in 1 8 82, they were 29 percent greater. But this percentage did not increase the following year, nor did the trend have the volatility of previous decades. By now the trend was one way and heading towards a positive exporting economy. In 1 883, imports were only 12 percent higher than exports, eight percent the following year and by 1 8 86, one percent. In 1 887, the colony was a net exporter of goods to the value of £620,654, and imports were 91 percent of exports. This trend continued for the next forty years. Proportionately, imports reached their lowest point in 1 890, when by value they were just 64 percent of exports, although typically they remained between 75 and 8 5 percent of exports until 1 930. The mean between 1 8 87 and 1 9 30 was 8 4 percent. There 120 INNOVATION DYNAMIC were individual years, when imports again were larger than exports, such as 1 908, 1 9 1 1 , 1 920, and 1 926, but these were only single years and not sustained bursts.6 TI\ B LE 3 NEW ZEALAND TR I\ D I N G F I G U RES : 1 88 1 - 1 9 1 0 Year Total Trade % Imports % Exports % Positive Positive chan�e chan8,e cha�e ImEorts EXEorts 1 881 £13,5 1 7,91 1 0.08 [),457,045 0.21 £6,060,866 -0.05 £1,396, 1 79 1 882 £1 5 ,267,278 0 . 13 £8,609,270 0. 1 5 £6,658,008 0. 1 0 £1 ,95 1 ,262 1 883 £15 ,070,037 -0.01 [),974,038 -0.07 £7,095,999 0.07 £878,039 1 884 £1 4,755,555 -0.02 [),663,888 -0.04 £7,091 ,667 0.00 £572,221 1 885 £1 4,299,860 -0.03 [),479,921 -0.02 £6,81 9,939 -0.04 £659,982 1 886 £1 3,431 ,804 -0.06 £6,759,01 3 -0. 1 0 £6,672,791 -0.02 £86,222 1 887 £13 ,1 1 1 ,684 -0.02 £6,245,51 5 -0.08 £6,866,1 69 0.03 £620,654 1 888 £13 ,709,225 0.05 £5,941 ,900 -0.05 £7,767,325 0 .13 £1 ,825,425 1 889 £1 5 ,650,727 0 .14 £6,308,863 0.06 £9,341 ,864 0.20 £3,033,001 1 890 £16,072,245 0.03 £6,260,525 -0.01 £9,81 1 ,720 0.05 £3,551 ,1 95 1 891 £1 6,070,246 0.00 £6,503,849 0.04 £9,566,397 -0.03 £3,062,548 1 892 £16,477,907 0.03 £6,943,056 0.07 £9,534,851 0.00 £2,591 ,795 1 893 £1 5 ,896,879 -0.04 £6,91 1 ,515 0.00 £8,985,364 -0.06 £2,073,849 1 894 £16,01 9,067 0.01 £6,788,020 -0.02 £9,231 ,047 0.03 £2,443,027 1 895 £14,950,353 -0.07 £6,400,1 29 -0.06 £8,550,224 -0.07 £2,150,095 1 896 £16,458,425 0 . 10 [),137,320 0. 12 £9,321 ,105 0.09 £2,183,785 1 897 £18,072,2 16 0 . 10 £8,055,223 0 . 13 £10,01 6,993 0.07 £1 ,961 ,770 1 898 £1 8,748,555 0.04 £8,230,600 0.02 £10,5 1 7,955 0.05 £2,287,355 1 899 £20,677,968 0 . 10 £8,739,633 0.06 £1 1 ,938,335 0 .14 £3,198,702 1 900 £23,892,257 0. 16 £1 0,646,096 0.22 £13,246,161 0. 1 1 £2,600,065 1 901 £24,699,339 0.03 £1 1 ,81 7,9 1 5 0. 1 1 £12,881 ,424 -0.03 £1 ,063,509 1 902 £24,971 ,700 0.01 £1 1 ,326,723 -0.04 £13,644,977 0.06 £2,3 18,254 1 903 £27,799,053 0. 1 1 £12,788,675 0. 1 3 £15,01 0,378 0.10 £2,221 ,703 1 904 £28,040,042 0.01 £13,291 ,694 0.04 £14,748,348 -0.02 £1 ,456,654 1 905 £28,484,804 0.02 £12,828,857 -0.03 £1 5,655,947 0.06 £2,827,090 1 906 £33,306,540 0 . 17 £1 5,21 1 ,403 0. 1 9 £1 8,095,137 0. 1 6 £2,883,734 1 907 £37,371 ,8 18 0. 1 2 £17 ,302,861 0. 1 4 £20,068,957 0.1 1 £2,766,096 1 908 £33,788,778 -0. 10 £1 7,471 ,284 0.01 £16,31 7,494 -0. 19 £1 ,1 53,790 1 909 £35,336,71 5 0.05 £1 5,674,7 19 -0. 10 £19,661 ,996 0.20 £3,987,277 1 910 £39,231 ,792 0. 1 1 £17,051 ,583 0.09 £22,1 80,209 0.1 3 £5,1 28,626 Source: Statistics o f e w Zealand 1880-1910 What these aggregate trading figures suggested was that something had happened in the economy to cause exports to grow faster than imports in overall terms. By 1 887, the country had reached the point where the terms of trade were no longer dominated by sellers to internal markets, but sellers to external markets. The argument of this chapter is, that innovation, brought about by the initiative of colonial entrepreneurs in the areas 6 Statistics of New Zealand 121 ENTREPRENEURSHIP AND ECO OMIC DEVELOPMENT of technology and distribution, was the dominant cause of this reversal in economic fortunes. Imports and exports were to a degree independent; changes ID one did not necessarily come at the expense of the other. While large grain companies and mercantile companies handled significant quantities of imports and exports, extensive trade also occurred amongst smaller firms. 7 Individual farmers sold direct into English markets, meat producers like James Gear travelled to the United Kingdom to organise contracts, and an array of small-time drapers and merchants, such as Thomas Wamock or Thomas and Samuel Morrin, imported goods on their own account, indifferent to what movements might be occurring in the broader balance of payments. £45,000,000 £40,000,000 £35,000,000 £30,000,000 £25,000,000 £20,000,000 £15 ,000,000 £10,000,000 £5,000,000 F IGURE 8 I MPORTS A D EXPORTS 1 853 - 1 9 1 0 --Total Trade -- Imports -- Exports £O ������������������ 9 � � � � � � � � � � � � h � � � � � � � � � � � � � � � � Year Source: Generated from Statistics of ew Zealand 1853-1 910 Th� agents of change in the export and import markets were not the same. In the export markets the agents of change were primarily product innovation, price, and the infrastructure of trade-meaning the limitations and development of marketing and 7 When George Gray Russell and John Macfarlane Ritchie reorganised their fledgling mercantile company in 1 873, they were already investing in land and trading in New Zealand wool, wheat, sugar from Mauritius, Chilean flour, and Indian tea. Profits were substantial in the buoyant colonial market. On the first year's trading of £28,000 profit was £8000. See Parry, Gordon, .MA.: the Story of the First 100years: the National Mortgage and Agmry Compa'!J of New Zealand Ltd., 1864-1964, Dunedin: ational Mortgage and Agency Co., 1964, p.24. 122 INNOV ATlON DYNAMIC distribution networks in the home country and in the intended market. The frozen-meat industry, to be discussed shortly, provided a useful example of this as its expansion was contingent on both technological innovation and the development of distribution networks. Likewise, the expansion in the gold industry in the Auckland region in the 1 890s was triggered by technological innovation; in this case by the adaptation of the cyanide process for gold extraction. By contrast, the important explanatory factors for the growth in the importing trade (including local wholesale and retail markets) , had to do with population growth, product innovation in the second industrial revolution creating new markets, and isolation. Isolation refers to the regional transport and geographic barriers that enabled the rise of localised monopolies and replication of industries. This is discussed in a later chapter, but in brief, these market characteristics permitted merchants and local industries such as coachbuilders, printers, and brick makers to expand, aided by significant barriers to competition. 8 In this respect, it is of very little value to use broad-based economic indicators, such as import and export statistics, as the sole measure to interpret what was occurring in the colonial economy. For example, given the extraordinary levels of population growth occurring in the colony, indicators such as per capita import and per capita export figures need to be treated with caution. If there had b een a relatively static population in the colony, a downward movement in per capita imports might have indicated a drop in consumer demand, if a local manufacturing industry was not providing substitute products. However, New Zealand's colonial economy was not that static. Consequently, interpreting New Zealand's per capita trading figures prior to 1 900 is complicated by rapid population growth and mushrooming mercantile and industrial markets. 8 See Chapter 7. 1 23 £100 £90 £80 £70 £60 £50 £40 £30 £20 £10 ENTREPRENEURSHIP AND ECO OMIC DEVELOPMENT F IGURE 9 PER C AP ITA EXPORTS A D I MPORTS : 1 8 80- 1 93 0 --Total Trade Per Capita -- Per Capita Imports --Per Capita Exports £O�-+�����-+��-+��-+�+--+�+--+�+-� 1 870 1 875 1 880 1885 1 890 1 895 1 900 1 905 1 91 0 1 9 1 5 1 920 1 925 1 930 Years Source: Generated from Statistics of New Zealand 1870-1930 The above graph gtves one example of the limitations of broad econorruc analysis. The substantial enterprise and economic recovery, that most econorruc historians acknowledge had occurred by 1 896, is not visible in terms of per capita trading figures. For instance, per capita export figures did not surpass the figures achieved in 1 870 until 33 years later in 1 903. The reason for this had little to do with the strength or make-up of the economy, but rather the diluting power of population in per-capita analysis.9 In the eleven years between 1 860 and 1 870, the New Zealand population tripled from 79,7 1 1 to 248,400; in the decade following that it almost doubled again to 484,864; between 1 880 and 1 890 it increased another 30 percent. In the final decade to 1 900 New Zealand's population rose by another quarter. In summary terms, between 1 860 and 1 9 1 0 the population increased 1 157 percent. The effect of such a population increase on an economy can be surmised from comparable economic analysis of Australia at this time. In his landmark work on the 9 For example, had the export trade kept pace with such an ell.'pansion in people and demand the 1860 export trading statistics would have reached £5,671 ,6 17. They did not. Exports that year were in fact £13,246,161 , exceeding by 133 percent what they would have been if they had only kept pace with population growth. 124 lNNOV ATION DYNAMIC Australian economy in the late nineteenth century, economist Noel Butlin argued that urbanisation rather than trade opportunities drove the continent's rapid economic expansion. Butlin based his claim, in part, on an average compound population growth rate of three percent per annum between 1 86 1 and 1 90 1 , when the Australian population increased in size 219 percent from 1 ,1 56,000 to 3,690,000: A population increase until 1891 at 3 '12 percent p.a. was very fast indeed, considerably above all other countries of the western world. Even though the workforce grew more slowly, d1e over-all rate of growth was still very fast by world standards. 111ese were basic influences along with the growth of capital stock, d1e increase in land area used and changes in technology, behind d1e very high rate of growth in Australian gross domestic product. 10 Ironically, ew Zealand's average compound population growth rate during this same period at six percent was double that of Australia. It is not suggested that the New Zealand economy was of the same scale or concentration as the Australian economy, especially centres such as Melbourne or Sydney. However, it is undeniable that some of the central claims of the Butlin thesis on population-driven demand, urbanisation, changes in technology, increasing land use, infrastructure development, and expansion of local manufacturing hold true for New Zealand as well. Indeed, on the basis of urbanisation alone, one might venture an argument that New Zealand's long depression was not such at all. Rather, it was an economy struggling to keep pace with possibly the fastest rate of population increase in the western world. In short, supernormal rates of population growth, coupled with their associated economic demand, produced an inevitable turbulence as capital markets, infrastructure, labour markets, and enterprise strove to keep pace. To call such tensions depression is to misstate the obvious. The dominant characteristic of the colonial economy between 1 880 and 19 10 (even between the so-called long depression years of 1 878- 1 896) was expansion not retrenchment. And such an expansion, as we are about to examine, figured in the trading sector as much as in manufacture, or domestic mercantile activities. 10 oel Budin, Investment in Australian Ecollomic Development 1861 - 1900, Australian National University: Canberra, 1972, p.13. Ville also echoes the opportunities that were open for entrepreneurs during tlus period of intense urbanization, especially in brewing, saw milling, retailing and shipping, see Ville, Simon, 'Business Development in Cololual Australia', AustraliaJl Ecollomic History Review, 38: 1 (1 998), pp.30-32. 1 25 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT PRODUCT .-\ND PROCESS INNOV .-\ T ION IN EXPORT tvL\RKETS The following section considers the developments in the colony's export markets between 1 880 and 19 10 . To begin, the main classes of export goods at the start and end of the period are summarised isolating some of the significant changes. It is argued that rather than a pastoral economy developing based on low-technology wool production, what emerged was a multi-product export economy based on primary processing and technological innovation. Technological innovation and changes in demand of export markets provided an opportunity for entrepreneurs to exploit, particularly if they timed their entry into the market shrewdly. And their advantage was greater if they were in a first mover position. Developments lU meat processlUg, gold extraction and the dairy industry are considered as examples of this innovation-led economic expansion. Paralleling this discussion is an investigation of what economist Carl Menger termed 'complementary goods .' In the exploration of gold one immediate 'complementary good' was the development of a domestic engineering industry. In the primary processing of refrigerated meat and dairy products, shipping was an obvious 'complementary good.' EXPORT C LA S SE S By 1 865, imports made up 60 percent of total trade, yet by 1 89 1 , this figure had reversed and exports made up 60 percent of total trade; a basic structural change occurred in the economy over these 25 years. Yet, as much as the proportions of goods exported and imported changed, so did the actual classes of goods themselves. In 1 880, the chief exports of the colony were wool (£3,1 69,300) , gold (£1 ,220,263), grains (£908,8 10), kauri gum (£242,8 1 7) , and tallow (£146,535) shipped out in bulk and in near as raw form as possible. For instance, sixty-seven percent of the wool export went out packed as greasy, unwashed wool with the colony spending more on packaging for its wool clip than it earned on its entire tallow export. 1 1 1 1 In total, £1 58,200 was spent on bags and sacks including corn sacks, flour bags and wool packs. 1 26 INNOVATION D'rNAlVlIC T:\ B IY 4 R:\NK O R D ER OF f\I :\ I N EX PORTS : 1 8 8 0 - 1 93 0 18811 18911 1911) 191 1 1 19211 1931l \\'001 D,I(>9,3I H) \" 001 £4, 1 511,599 \\'001 £4,H9, 1% \\'001 £8,3118,4111 Mc:us £11,212,267 Buue( £"1 1,854,1156 Gold £1 ,22( ),2(13 t\Icats £1 ,1 187,(, 17 Mears [2,218,405 Meats [3,997;3110 \\'001 £1 1,863,827 Meats £I 1,1187,1% GraIns £')1)8,8 1 1 ) (,rains £liIY),1 1 1 ColJ £1 ,439,(,1)2 GolJ £1 ,8%,3 18 Cheese £6,160,8-10 \\'001 £7,664,362 Cum [242,8 1 7 Cold £751 ,3(,1) (;rains £1 ,(132,355 l�uHcr £1,81 1 ,975 Shl:cp SkinS D,1l611,21 2 Cheese £"6, -138,-138 Tallow £146,515 i 'hx £381 ,789 Buw.:r £7-111,621l Cheese £1,195,373 Butter D,ll2 ,355 Sheep Skins £1,51 (,,738 RabbH £"66,976 Cum £378,563 Gum £"622,293 Tallm\! £756,841 Tallow £1 ,148,773 Tallow £683,571 Timber £51,957 Timber £191l,641 TaJlmv [368,4/3 Shl'cp Skins £741 ,259 Gold £"883,7�8 I:nuts £669,3')7 Meats £38,591 Tallow £1 62,471 Flax £332,182 Gum £465,11-1-1 Rabb,t £830,112-1 Gold £5511,678 Sheep SkinS £32,598 Shccp Skins £122,7911 Shcl'p Skins £279,391 fhLX £-148,-11-1 Timber £697,6i!8 'I'imbcf [3111,582 I ,cather [26,509 guttt.:! £122,701 Timber £233,659 Timber £-108, 1 12 Flax £688,972 fl,,-, £221 ,923 Potarm:s £23,194 RabbH £1 1 1 ,8811 Chccs(! £229,1 1 1 Grains £318,3-10 Gum £556,756 Gum £189,635 Flax £15,617 Flour £87,368 I .eathcr £1 1 2,867 Coal £259,562 Grain!" £21il,812 Coal £186,2111 13urrer £"8,373 Cheese £84,986 Coal £98,136 Seeds £1 13,568 Secds £P7,369 Seeds £166,221 Seeds £6,742 Potatoes £80,794 SeeJs £93,lk)6 Rabbit £32,773 Coal £128,509 Rabb" £142,2-19 \:Url,l,'1JS £(',627 I ,earher £67,%6 Rabbit £41,689 I.cather £23,721 Leather £5 1 ,9-10 Grams £88,191 FloUf £6,1 176 Coal £67,{KI3 Potatoes £25,13-1 Funbrtls £16,4-17 Fruits £ "14,685 Fungus £ 1 1 ,4-16 Coal £5,979 Seeds [2-1,W5 Flour £17,11-14 Potatoes £3,5m Potatoes £12,8116 Potatocs £8,-151 Cheese £1 ,98-1 Fungus £12,823 Fungus 0,191 Fruits £1,935 Fungus £8,-113 Leathcf £5,332 Fruits {,-1,591 Fruits £778 Fruits ,6n Flour t::1,-m rlour Flour ,57 Source: Statistics of New Zealand: 1 880-1 930 The above chart shows the major classes of exports 111 rank order at ten-year intervals between 1 880 and 1 930. What IS evident IS the diversification of export products and markets during this time. Only two export staples in 1 880 were above one million pounds in value-wool and gold. By 1 930, this had increased to five export classes over the million pound mark. And o f the top five export classes in 1 880, only one good (wool) , remained in the top five export classes 30-years later, This too, was no longer in the top position but had been surpassed by exports of butter and frozen meats, But one does not need to look fifty-years ahead to see the evidence of diversification, Even a s early a s 1910, there had been significant changes in the classes of exports, By 1 9 1 0, only wool and gold remained i n the top five export classes that had been present thirty years earlier. Meat exports (£3,997,306), butter (£1 ,81 1 ,975) and cheese (£1 ,1 95,373) had risen substantially as new industries in their own right, each of them largely the result of innovation. Other significant export classes by 1 9 1 0 were coal (£259,562), huri gum (£465,044), flax (£448,414), and rabbit skins (£1 32,773),12 By-products of pastoralism also rose in importance as energetic traders found markets for sheepskins and pelt 1 2 Export of rabbit skins rose dramatically over the next ten-years and by 1 920 totalled £830,024 in export receipts. 1 27 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT exports . 1 3 While grain had dropped in value as an export over the period, the export of seeds was proving a lucrative market and had risen from £6742 in 1 880, to £1 1 3,568 by 1 9 1 0. Indeed the economy had changed from being a net importer of seeds to a net exporter. Also interesting to note were the products that remained tm-e."I1 co <'"l co co co co co co o 0- Source: Graph generated from figures in Statistics ojNew Zealand 1 853-1 910. The most acute example of this occurred in 1 895, when 1 1 6 million pounds of wool were exported from the colony a t a value of £3.6 million. For the wool industry, this represented a 50% fall in value compared the returns generated 1 8 years earlier in 1 877. Then, an export of only 64 million pounds of wool had earned £3.6 million. In cash generated and return on investment, 1 895 was a pitiful result for the wool industry, revealing just how susceptible the industry was to large swings in overseas price. The only upside of such an effect was that when prices did strengthen (and if demand held) , the industry would be well-placed to earn a significant return given the large volume of wool being produced. Meat was the first of the export staples to benefit from the application of technological innovation. Historian James Belich pointed to the export of refrigerated meat in 1 882 as a stimulus to what he had called the recolonisation period and his emphasis seemed justified. There was no other economic event in the 1 880s that had such a profound effect on the basic structure of the economy and its orientation towards foreign markets. Yet, in terms of enterprise and entrepreneurship, what stood out in the frozen­ meat industry was not just the size of the innovation but the dramatic rate at which the 1 30 INNOVATION DYNAMIC industry expanded and encouraged new enterprise. In 1 880, £38,591 of potted and preserved meats was exported. Ten years later in 1 890, £1 ,223,799 of preserved and frozen meats was exported-a 3000 percent increase in the value of trade in what had become the colony's second largest export industry. The following graph shows this pictorially. The wool export has been removed from the graph so as to make the scale more uniform amongst other export classes. £1 ,400,000 £1 ,200,000 £1 ,000,000 £800,000 £600,000 £400,000 £200,000 £- 1 880 1 881 F IGURE 1 2 EMERG J G EXPORTS : 1 8 80- 1 8 90 1 882 / "" / / / 1 883 1 884 --Cheese --- Flax --Gold --Kauri Gum --Grain - - - Frozen Meat --Butter - - - - 1 885 1 886 1 887 1 888 1 889 1 890 Source: Graph generated from figures in Statistics of ew Zealand 1 880-1890. The main trends from the above graph are easily recognisable. The export of gold and grain stand out a s the two dominant staples at the start of the period. Exports of kauri gum were also of some importance while at the bottom of the graph are a cluster of insignificant performers; meat, butter, flax and cheese. As the decade progresses the various export industries enjoyed different fortunes . The export of gold declines throughout the 10-year period, while grain exports show a 131 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT sharp fall coupled with an upswing at the end of the decade. l s Exports of kauri gum showed a steady demand and slow upward momentum. The most striking advance was that of frozen meat exports, which rose from nothing in 1 882, to over a million pounds in export earnings eight years later. By way of comparison, flax, butter, and cheese that were all at similar positions on the graph to frozen-meat exports in 1 882, were at vastly different points eight years later. The development of the frozen meat trade in New Zealand was instigated by two ambitious entrepreneurs, William Davidson and Thomas Brydone. They were not the ftrst to experiment with the export of frozen meat on the world market. The Australians, Americans, and Argentineans had already beaten them by two years or more. But the process was not perfected. In bringing the necessary technology together at Port Chalmers in Dunedin, the pair were taking a very real risk in what looked to be an exciting but uncertain market. Preparations for the ftrst export took place over a two-year period. In 1 880, Davidson, the general manager since 1 879 of the New Zealand and Australian Land Company, negotiated with Scottish engineering company, Bell, Coleman and Co., in Glasgow for suitable refrigeration equipment. He also convinced the Albion Shipping Company to outftt out one of their fastest ships, Dunedin, with this innovative equipment. Simultaneously in New Zealand, Thomas Brydone, a manager with the New Zealand and Australian Land Company, began to construct the infrastructure needed to effect the scheme. He planned and built a specially-constructed slaughter house at Totara, North Otago, from which meat would be despatched in insulated rail wagons to Dunedin and the port.l(, The ftrst setback came quickly. While the fIrst shipment was being loaded, a component in the freezing machine broke down and the fIrst 641 carcasses of frozen mutton had to be sold locally. The Dunedin was dutifully repacked and despatched for London on February 1 5 1 882. Ninety-eight days later, Davidson, who had sailed independently, was waiting on the London Docks for his new venture to berth and inspect the hold. He was not disappointed, and after dispensing the cargo of over 4500 carcasses for a sound profit, twice what he would have netted on the home market, he IS By 1 887, the grain industry had suffered a 60 percent drop in value. The reasons for this are discussed in a later chapter. 16 For an in-depth description of the developments behind the first shipment see: Cuff, Martine E., Totam Estate: Centenary of tile rro�en Meat Industry, Wellington: New Zealand Historic Places Trust, 1 982, pp.31 -54. 1 32 INNOVATION DYNAMIC must have wished he had a dozen such ships on the seas heading towards the London docks. Assembling such an armada would take time, but events probably happened faster and on a greater scale than Davidson or Brydone could have anticipated. Even while the Dunedin was plying her way towards Britain, another gathering of eager investors, farmers and projectors met in Invercargill to enter the industry, forming the Southland Frozen Meat and Produce Export Co. Ltd. In Auckland, a specially built freezing unit was constructed at the Auckland docks by the Auckland Harbour Board; within nine months a cargo of 9000 carcasses was despatched by eager promoters. 17 After hasty meetings in the provinces, a group of frozen meat companies were formed around the country. For some the frozen meat trade offered the possibility of vertical integration, allowing them to capitalise on existing plant and machinery in the supply chain. In Auckland, the brothers, William and Richard Hellaby, turned their interests towards the frozen meat trade and their firm expanded considerably as a result. Their first shop opened in 1 873, but by 1900 they were arguably the largest butchery firm in the colony. Two hundred staff worked in their retail premises, slaughterhouse, boiling down works, bone mills, fellmongery, and freezing and tinning works. Wellington butcher, James Gear, provided a similar example to the Hellaby brothers. He too was well placed to enter the new market. Gear, the son of an English butcher, had been apprenticed into the trade, immigrating to New Zealand by 1 86 1 . I8 H e opened his first butcher's shop in Wellington four years later. Gear expanded his trade by acquiring other Wellington butcher's shops, and by 1 873 he began what would be an increasing move into vertical integration. He constructed a preserving plant to enable the distribution of meat into outlying districts, and a year later in 1 874 opened slaughterhouses and boiling down works at Petone. In November 1 882, six months after the Dttnedin landed at the London docks, Gear forming tlle Gear Meat Preserving and Freezing Company, bringing in the capital and talent of other Wellington businessmen, P .A. Buckly, W.H. Levin, John Duthie, and Nicholas Reid. Of this group, Levin and Reid were strategic choices by Gear. While Gear had substantial experience in meat processing he had no knowledge of international 17 Lind recounts some of the enthusiasm among other projectors. See Lind, Clive A., The Krys to Prosperity: CeJltenlzial History of S oHthlalld FroZeII Meat Ltd., Invercargill: Southland Frozen Meat Ltd, 1981 , pp.4 7 -63. 18 (yclopedia ofNeuJ Zealand, vol. 1 , Wellington, pp.704, 826-827. 1 33 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT trading practices . abundance. 1 9 This was something that merchants Levin and Reid had ill The venture was a success. By the late 1 890s, Gear Meat Preserving and Freezing Company employed 250 staff over five departments: the engineering and freezing department, the boiling down works, the fellmongery department, the stock and slaughtering department, and the meat preserving and canning department. In addition, Gear had a manure plant employing another 20 staff. Gear's works were capable o f freezing 1 6,000 sheep per day and storing u p t o 3000 carcasses.20 Gear and the Hellaby brothers were quickly joined by others also keen to enter this new market. Shares placed through joint stock company floats were eagerly subscribed by merchants, farmers, promoters, financiers, industrialists, and merchants. Over the next two years a cluster of local initiatives emerged. This included firms, such as the New Z ealand Refrigerating Company (1 881), the Wellington Meat Export Company (1881) , the Southland Frozen Meat and Produce Export Company (1 882), the Canterbury Frozen Meat and Dairy Produce Export Company (1 882), the Hawke's Bay Meat Export Company (1 882), New Zealand Frozen Meat and Storage Company (1 883) , the Otago Meat-Freezing and Produce Company (1 883), the Christchurch Meat and Produce Freezing Company (1 883), the Marlborough Freezing Company (1 883), the South Canterbury Refrigerating Company (1 883), the West Coast Meat and Produce Export Company (1 883) and the Wellington Meat-preserving and Refrigerating Company (1 883) .21 Within three years, the frozen meat trade attracted significant capital investment, directed into the building of processing and storage facilities. Put together, combined share capital of the firms listed above was £535,000, £1 88,883 greater than the 19 Levin in particular. William Hart Levin started in his father's mercantile business in 1 864. By then, Levin and Co., had been established in Wellington for over 20-years. S tarted in 1 84 1 , by N atharuel Levin, himself the son of a Jewish merchant, the fIrm had begun importing soft goods and by 1 843 started exporting. By the 1 860s, when Levin's son William entered the firm it had expanded to include a large wine and spirit business, wool exports, insurance agencies, estate management, loan company investments through New Zealand Trust and Loan Company (from 1 866), and shipping agent for Shaw Savill and Co., since 1 862. It was in tlus regard that the connection with the Gear meat company was favourable. Levins and Co., had extensive knowledge of agency arrangements, London markets and the cost and supply of slupping routes. The Dtllledin was the fust refrigerated vessel of the Shaw Savill and Albion Company (Shaw Savill and Co., and the Albion Company amalgamated at the end of 1 882). See Gore, Ross, Levins 1 84 1- 194 1: The History of the First Htll1dred Years of Levin and Compatry Limited, Wellington: Levin and Company, 1 956 for a list of agencies handled in tl1e firm by 1 883, pp.64-65. 20 (yclopedia of New Zealand, vol. 1, Wellington, pp. 826-827. 21 Statistics of New Zealand 1 34 INNOV ATIO DYNAMIC increase shown for the frozen meat industry in the industrial statistics during the same period.22 In 1 881 there had been 40 meat works in the colony. These works employed 465 people with a total capital investment of £96,845. Five years later, there were only 44 works, but numbers employed in the industry had nearly doubled and capital invested in plant machinery and buildings had risen fourfold to £442,962.23 The frozen meat trade was capital intensive, with the trend over the period toward larger plants employing larger staff. 1 20 100 80 60 40 20 F I G URE 1 3 FACTORY S I ZE FROZEN MEAT INDUSTRY: 1 8 8 1 - 1 9 1 1 -- Total number of plants -- Average plant size (people) o +-----,-----�-----.-----.-----.------,-----, 1 881 1886 1 891 1 896 1 901 1 906 1 9 1 1 Source: Generatedfrom Statistics of ew Zealand: 1881 -19 1 1 The industry developed so rapidly that the problem for the meat freezing companies was not securing enough stock to send to England, but finding available space on the existing ships. In 1 885, for example, the Southland Frozen Meat Company was unable to lure a vessel to Bluff and had to send carcasses by rail to Christchurch. 22 The value reported in the census stausucs was for fixed capital in land and buildings, plant and machinery. It did not show other capital, which would always be needed in commercial activity including working capital to finance day-to-day operations, capital held in stock, raw materials and work in progress. 23 It sparked a provincial if not national cooperative effort. The first national conference of meat companies was held in Christchurch on 8 August 1 884. Aside from setting quality standards for the preparation and transportation of frozen meat, they also secured reduced shipping rates. 1 35 EN1REPRENEURSHIP AND ECONOMIC DEVELOPMENT F I G URE 1 4 CAP ITAL I VESTME T FROZE I MEAT I DU STRY : 1 8 8 1 - 1 9 1 1 £45,000 £40,000 £35,000 £30,000 £25,000 £20,000 £1 5 ,000 £10,000 £5,000 -- Capital investment per plant -- Pla.nt and machinery investment per plant £0+----.----,----,----,----.----.----. 1 88 1 1 886 1 89 1 1 896 1 90 1 1 906 1 9 1 1 Source: Generated from Statistics of New Zealand: 1 88 1 - 1 9 1 1 EARLY DIFF ICULTIES There was more to gaining a foothold in a new market than just forming a company, and the export of frozen meat did not go ahead without some early difficulties. 'There is a general all round objection in England,' wrote one correspondent, 'to the introduction of any New Zealand produce. Buyers do not like going outside of their ordinary groove. '24 Meat was of varied quality upon delivery, and the first shipment from Southland was derided at home and abroad for sending old ewes in a deplorable state. High returns were not guaranteed with meat prices on the London market favouring the fresh article, rather than frozen stock. Any aversion, however, was not lost on some English butchers, who purchased cheaper frozen ew Zealand meat and sold it at premium prices disguised as English mutton. New Zealanders in London who visited Smith field market, or agents of ew Zealand firms, were quick to communicate their impressions to newspapers back home. In early 1 884, the Done berthed in London and discharged cargoes of frozen meat, butter, and cheese. Charles Pharazyn, who was in London at the time, wrote that the condition of the meat was equal to English meats and addressed the question as to why 1 36 INNOVATION DYNAMIC there would be a pnce difference of up to 3d per pound in the English markets for frozen New Zealand meat. Two reasons occurred to Pharazyn; firstly, that it was difficult for a new innovation in such great supply to find new channels of consumption; secondly, that the meat was being bred too fat for the English palate compared to English mutton.25 Detractors were also found in the home markets. In Auckland, one writer to the Herald was clearly incensed about the idea of despatching frozen meat from the port of Auckland. He reprimanded the promoters, pointing to the difficulties being experienced by the Australian Frozen Meat Company: 'Now, this company has the cream of squatting influence at its back, having on its share list the most prominent runholders. Everything is in its favour-wealth, supply unlimited, perfect means of transit. In writing this I desire those about me to consider whether we are not doing a very foolish thing to try to s truggle into the trade . . . '26 Persist they did, and it was evident from the sheer quantities of frozen meat being s hipped that significant capital and enterprise was being directed towards this new industry. In 1 882, 762 tons of frozen meat was exported from New Zealand. In 1 883, it was over five times this amount at 4300 tons. One correspondent wrote from London in December 1 883 applauding the launch of the steamers, Ionic, Doric, and Tongan'ro into the meat trade. They were needed; in 1 884 the frozen meat trade tripled to over 1 2,000 tons per year. As to the condition of the cargoes and the market in general the correspondent remarked, ' . . . it is quite clear that the New Zealanders have secured by their enterprise a position of superiority in regard to the frozen meat trade which cannot easily be challenged. Not only are their cargoes of meat, as a rule, superior in condition to those arriving from the Australian colonies, but New Zealand sends four or five sheep for every one sent from all the other colonies put together. '27 As the correspondent looked to the next year, he expressed some anxiety that the distribution channels in England might not be able to cope with the expected numbers of New Zealand mutton, which 2� Cluistchurch Press, Thursday January 17 1 884, p.3. 25 ibid., Friday, January 25, 1 884, p.3. Pharazyn also stressed the need for the shipping companies and freezing companies to reduce their changers to make the trade more profitable for the farmers. 26 New Zealand Herald, Friday June 1 1 883, p.3. By June 1 883 Auckland had shipped its flrst frozen meat cargo of 8000 carcasses, the Harbour Board having made provision at the Auckland docks of the necessary facilities. 27 Christchurch Press, Wednesday February 6, 1 884, p.3. 1 37 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT looked to double on the previous year's tally of 250,000 carcasses. To dispose of this amount of stock, provincial centres in Britain would also have to be supplied as well as metropolitan areas. Even as early as 1 889, New Zealand promoters had assumed the prime mover position in the world market for frozen meat. Figures provided by Clive Lind, suggest that by 1 889, New Zealand had sent over three million carcasses to London, compared with two million from the River Plate and 600,000 from Australia. 28 Predictably, frozen meat continued its climb in importance as an export staple through out the 1 890s. In 1 890, almost 50,000 tons of frozen meat was shipped to Britain, and ten years later it was almost 1 00,000 tons. By value, the industry also doubled. It exported just over £1 million of frozen meat in 1 890 and over £2 million by 1 899-meaning that that price had remained stable in the face of rapidly increasing supply. By then, the trade had reached such proportions that government were anxious to involve themselves in the industry. F I GU RE 1 5 MOVEMENT O F MAJOR EXPORT CLAS ES AT 1 0 -YEA R I NTERVALS : 1 8 80- 1 9 30 £14,000,000 £12,000,000 £10,000,000 £8,000,000 £6,000,000 £4,000,000 £2,000,000 £0 Source: Generated from Statistics if New Zealand: 1880-1930 28 See Lind, Clive A., The Krys to ProsperitJ: Centennial History if S ollthland Frozen Meat Ltd., 1 981 , Southland Frozen Meat Ltd. 138 INNot 'ATION DYNAMIC The Premier while on a state visit to England in 1 897 to participate ill the celebrations surrounding Queen Victoria's sixtieth year on the throne, visited the English shipping companies. Directly, he informed them that unless a reduction in charges was forthcoming the government would intervene. Exactly what he had in mind is not known, but nor did the shipping companies linger to find out, and a drop in freight rates was soon advised. By 1900, the export of meat had increased another million pounds in value to £2,21 8,405 (See Table 4) . It rose by almost two million pounds over the subsequent ten years to 1 9 1 0 (£3,997,306). By 1 920, this figure had tripled and meat exports that year valued at £12,2 1 2,267, eclipsed wool as the dominant export staple. The biggest structural change in the New Zealand export economy was now complete. Innovation driven export growth, in what Belich termed the 'protein trade', had usurped wool's leading position. EXPLANA TIONS FOR GROWTH One of the questions that might be asked of the frozen meat industry is : How did it manage to expand with such speed? Certainly farmers saw it as a boost to both productivity and prices as they could export all year round, generally achieving superior prices on the English market to those achieved at home. In addition, the frozen meat trade benefited from an existing distribution network. Firms, such as the New Zealand Loan and Mercantile Agency Company Ltd., National Mortgage and Agency Company of New Zealand, and Miles and Company already had established agents and branches in New Zealand, with willing buyers of colonial produce in the United Kingdom. These fIrms merely added another class of goods to their established list as the frozen meat trade grew. New Zealand promoters of frozen meat did not have to develop entirely new channels of distribution; rather, they could concentrate their efforts on refining the product and processing. The British consumer played a signifIcant part in accepting this innovative new product, sustaining demand for colonial suppliers. Visionary support for the expansion of the frozen meat trade was also found among shipping companies. SHIPP ING .-\ND THE D EVELOPMENT OF INFRASTRUCTURE As economist Carl Menger asserted, the launch of an innovation in the market would spur innovation in what he termed 'complementary goods. ' For the frozen meat trade, the beneficial economic effects were not just the development of processing plants and profitable returns to company projectors and farmers, but also in the other activities that were spin-off activities from the initial innovation. Some were goods related to the 139 EN1REPRENEURSHIP AND ECONOMIC DEVELOPMENT production of the initial innovation, such as the production of wraps for meat carcasses. It was an industrial activity that was not large, but nevertheless one that was not needed prior to the initial innovation. Other complementary goods could emerge in the provision or delivery of the new innovation to market. F I G URE 1 6 S H I PP I G TON AGE A D OUTGOI G VESSELS : 1 8 5 3 - 1 890 1 ,200 1 ,000 800 600 400 200 -- Average tonnage outwards vessels -- umber of outgoing vessels Year Source: Generated from Statistics ojNew Zealand: 1853-1 890 The infrastructure of the frozen meat trade-shipping companies, agency firms, warehousemen, insurance firms, retail and commercial outlets, all increased in scale and scope as import and export trade in the colony intensified. 29 Shipping companies, in particular, embraced the innovation 1n frozen meat. Speed was essential for transporting frozen items long distances, and although the iron clipper Dunedin was fast, she was not as fast as the new steamers being launched on 29 The number of insurers and their international connections give some indication of the sophistication in this area and among the 38 insurance companies trading in Dunedin in the 1 880s were the National Insurance Company, South British Insurance Company, Magdeburg Fire Insurance Company of Hamburg, New Zealand Insurance Company, Victoria Insurance Company, Transatlantic Fire Insurance Company, and the Australian Alliance Assurance Company. 140 INNOVATION D'rNAlvIIC international routes. In this respect the New Zealand Shipping Company was well placed to get some of this new business. Founded in Christchurch in 1 877, the line was initially under contract to the New Zealand government to bring out immigrants from the United Kingdom. Following the success of frozen meat exports, the company took a significant risk. While refrigeration was in its infancy, it ordered five steamers from a Glasgow shipbuilding firm capable of transporting between 1 2,000 and 1 5,000 carcasses. The gamble paid off. Given that steamers could make the trip between England and New Zealand in almost half the time that the iron clippers could, it was inevitable that the New Zealand Shipping Company would soon dominate the trade. The Company commenced its direct monthly steamers to the United Kingdom in 1 883, and by 1 902, it had 16 ships working the route. For other firms to have a share of this new market, they would have to upgrade their fleets at substantial cost. They did. Shaw Savill merged with the Albion line in 1 883, just as the New Zealand Shipping Company began to work the frozen meat trade. Quick to respond to a colonial competitor in a market they had previously monopolized, the English firm commissioned seven large cargo steamers for the New Zealand trade, and these were then followed by a raft of other ships, the Ionic, the Don·c, T ainui, Arawa, and Victory. The English firm of Turnbull Martin and Co., who ran the Shire line of steamers, launched the specially built ElderJlie, just two years after the Dunedin's voyage. At 300ft long, Elderslie could carry in excess of 8000 carcasses. She was one of six steamers the company ran. They called at Townsville and Brisbane, before taking on wool and dairy produce from New Zealand ports bound for Rockhampton. In London, storage facilities for frozen meat were increased and further ships were fitted with freezing plants, such the Arawa, Kaikottra, and Mataura-with a capacity of 7000 carcasses each. The Tyser Line, an English company with the New Zealand head office ill Napier, started working the New Zealand route later than any of the other major shipping firms though showed no hesitation in committing sizeable resources to the frozen meat trade. By 1 887, its ships, such as the Balmoral Cast/e, were carrying cargoes of 22,000 carcasses; only one of the 13 steamers the company had working the New Zealand route.311 .10 Lind records that in Liverpool and London by 1 889 storage facilities for frozen meat had a capacity o f 400,000 carcasses, smaller facilities in Glasgow, Birmingham and Manchester added another 300,000 to that total. 1 0 Sailing ships and 1 6 steamers were servicing the frozen meat trade between New Zealand and Britain with an overall capacity of 1 .2 million carcasses. See p .8S. 14 1 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT In sum, the process of capital attraction that was evident among producers of frozen meat products repeated itself in the shipping industry; evidence of the flow on effect of innovation-led economic development. This movement of resources was aided by the technological improvements in steam shipping which assisted the movement o f frozen produce. The technological improvements wrought in steam transportation changed the nature of coastal shipping around the colony, prompting new entrants to this market too. Merchants Levin and Company ran small river steamers out of Foxton, while the Anchor Steam Shipping Company traded its four s teamers out of Nelson plying the West coast of the South Island. In Wellington, iron founder Charles Segar used his ships in the Wellington Steam Packet Company to work the route between Wellington and Nelson. Similarly, in Auckland, J .J. Craig used his steamers to move coal and cargoes around nearby coastal regions, but his main competitor, the Northern Steamship Company, quickly dominated the northern coastal trade through sheer capacity. Though they only started in 1 881 with six steamers, by 1 889, the Northern Steamship Company had added another three ships and by 1 901 they had 28 vessels on the water.31 Such developments were dwarfed by the capital applied to the Dunedin-based, Union Steam Ship Company. Starting only SL,{ years earlier in 1 875 with five steamers, the projectors were headed on a course of aggressive expansion through constant recapitalisation of the company. Within three years of starting, James Mills and his fellow directors had added another 14 ships, working the coastal and inter-colonial trade with A us tralia. Over the next five years, another 1 0 ships were added as vessels increased in size and reach. Six more steamers were added in the two years to 1885, and by 1 904, the firm had 53 steamers working the Australasian, South Seas, India, and Canada shipping routes with over 2,600 staff.32 Mills' domination of this trade did not go unchallenged; the Melbourne-based firm, Huddart, Parker and Co., put 1 7 steamers on the Australasian shipping routes from 1893. 3 1 yc!opedia ofNelV Zealand, vo1.2, Auckland. 32 See Duncan Haws, Union Steamship Compa'!J of New Zealand, Pembroke: TCL Publications, 1 997; Gordon McLauchlan, The Line that Dared: a History of the Union Steam Ship Compa'!J, 1875-1975, Auckland: Four Star Books, (1 987) . 142 INNOVATION DYNAMIC P ROCE S S INNOV "\ T ION AND THE GOLD INDUSTRY Gold was the second export staple to benefit from the effects of technological innovation. The alluvial gold rushes of the 1 850s in Australia and 1 860s in New Zealand triggered substantial population increases to these territories. In New Zealand, Otago initially benefited from the gold mania as immigrants and speculators poured into the region by the thousands. Gold was exported to either London or Melbourne for minting and exports increased dramatically. Within three years of the 1 861 strike in Otago, gold exports had risen to over half a million ounces per year, remaining at this level until the early 1 870s. The high-point in gold exports occurred in 1 87 1 , when 730,000 ounces were exported at a value of £2,787,520. After this, output and returns fell away until 1 880, when yearly exports dropped to under 300,000 ounces. While the incentive to commit such large amounts of capital and resources to gold production had been the advent of technological innovation, part of the explanation also lay in the price of gold. Whereas the price of wool was subject to swings in value, gold provided more certain returns for those willing to divert capital and resources to technological exploration3} As the graph below depicts, the price between 1 880 and 1 9 10 only moved between £3 1 6s and £4.}4 33 The export prices for kauri gum, butter, cheese, and frozen meat were also relatively stable. Frozen meat showed the least price elasticity of any export staple in the 1 880s. 3� By way of comparison, the average percentage change in price per year between 1 880 and 1900 for wool was almost -2 percent; for gold it was -0.2 of 1 percent. 1 43 £4.0 £3.5 £3.0 £2.5 £2.0 £1 .5 £1 .0 £0.5 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT F IGURE 1 7 GOLD PRICE P E R OUNCE : 1 8 5 3 - 1 9 1 0 £0.0 -h-,."...,.,....-rrrr..,...,.--",.."-"...,...,..,..,...,.--r.-r..,...,.--,,...,-,-,-..,...,.--r.-r...,.,..-,-r,-,....,-..,...,.--r.-r,...., �'? �'\ b' � o..� �'? (\'\ ':b' ':b� :§l '?i'? �'\ �, �� � � � � � � � � � � � � � � Source: Statistics of New Zealand: 1853-1910 From the mid-1 880s, encouraged by gold discoveries in the Coromandel near Auckland, a second wave of gold-fever erupted. This time, however, what eventuated was driven by technological innovation in the form of the hydraulic stamper battery. These batteries first crushed quartz into grains the size of sand then released the gold using chemical processes. In the 1 881 census there were no hydraulic gold mining and dredging operations returned. By 1 886, there were 1 24 operations employing over 600 people with over £220,000 of capital invested in plant and machinery. 144 INNOVATION DYNAMIC F IGURE 1 8 GOLD EXPORTS I N O U CE S : 1 8 5 7 - 1 9 1 0 800,000 700,000 ANI 600,000 500,000 400,000 I 300,000 I 200,000 I J -- Gold exported in 100,000 ounces ° ...j r-- N r-- N r-- N r-- N r-- N r-- l/") \0 \0 r-- r-- 00 00 C\ C\ 0 0 00 00 00 00 00 00 00 00 00 C\ C\ ..... ...... Source: Generated from Statistics of New Zealand: 1857-1 910 Auckland promoters, in particular, rushed to divert capital to the goldfields. Between 1 886 and 1 890, eighty joint-stock companies were registered in the Auckland province for the purposes of gold and silver mining and quartz-crushing.35 Some, such as the Paroquet Gold-mining and Quartz-crushing Company (1 887), the May Queen Gold­ mining Company (1 889), the Occidental Gold-mining Company (1 890) , and the Carbine Gold-mining Company (1 890) were significant concerns each with a nominal capital of £25,000. Others were smaller, such as the Caledonian Gold-mining Company (1 889) with a capital of £6,000, the Freedom Gold-mining Company (1 890) with a capital of £6,000, the Midas Gold-mining Company (1 890) with a capital of £6,250, and the Perseverance Gold-mining Company (1 890) with a capital of £9,000.36 However, individual companies disguise the enormous scale of this enterprise. The combined share capital of these 80 new firms was £1 ,1 00,475.31 In total, the capital in these new firms was equivalent to one fifth of all the industrial capital in the colony as recorded in the 35 A full list of these firms is included in Appendix F. 36 These figures and the years of incorporation are sourced from various years in the Statistics of New Zealand. 37 In 2003 dollars this was equivalent to almost half a billion dollars ($440 million). 145 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT 1 886 census.oH Not surprisingly the New Zealand Herald, reported daily on the production figures from the gold batteries . TABU , S GOLD EXPORTS : 1 8 5 7 - 1 9 1 0 Year Quantity in Value Year Quantity in Value Ounces Ounces 1857 10,436 £40,442 1 884 246,392 £988,953 1 858 13,533 £52,443 1 885 222,732 £890,056 1859 7,336 £28,427 1 886 235,578 £939,648 1 860 4,538 £17,585 1 887 1 87,938 £747,878 1861 194,234 £752,657 1 888 229,608 £91 4,309 1862 410,862 £1 ,591 ,389 1 889 1 97,492 £785,490 1 863 628,450 £2,431 ,723 1 890 187,641 £751 ,360 1864 480,17 1 £1 ,857,847 1 891 251 ,16 1 £1 ,007,172 1865 574,574 £2,226,474 1 892 237,393 £951 ,963 1 866 735,376 £2,844,517 1 893 227,502 £91 5,921 1 867 686,753 £2,700,275 1 894 221 ,614 £887,865 1 868 637,474 £2,504,326 1 895 293,493 £1 ,1 62,181 1 869 614,281 £2,362,995 1 896 263,694 £1 ,041 ,428 1 870 544,880 £2,1 57,585 1 897 251 ,647 £980,204 1871 730,029 £2,787,520 1 898 280,175 £1 ,080,691 1 872 445,370 £1 ,730,992 1 899 389,570 £1 ,513 ,1 80 1873 505,337 £1 ,987,425 1 900 373,614 £1 ,439,602 1 874 376,388 £1 ,505,331 1 901 455,558 £1 ,753,784 1875 355,322 £1 ,407,770 1 902 507,852 £1 ,951 ,426 1876 318,367 £1 ,268,559 1 903 533,3 1 4 £2,037,832 1877 366,955 £1,476,3 12 1 904 520,323 £1 ,987,501 1878 3 1 1 ,437 £1 ,244,1 90 1 905 520,485 £2,093,936 1 879 284,100 £1,134,641 1 906 563,843 £2,270,904 1880 303,215 £1 ,220,263 1 907 508,210 £2,027,490 1881 250,683 £996,867 1 908 506,381 £2,004,799 1882 230,893 £921,664 1 909 506,371 £2,006,900 1883 222,899 £892,445 1 9 10 478,286 £1 ,896,318 Source: Statistics of New Zealand 1853-1 9 10 A further burst of enthusiasm for gold mining was related to the introduction of the cyanide process .39 This process added cyanide to crushed ore dissolving silver and gold into solution, which could then be collected and melted into bullion. The Crown mine, outside Waihi, on the banks of the Waitawheta Stream, was the first mine in the 38 Some of this difference in total capital would likely be accounted for in working capital, as opposed to fLxed capital that tile census records. 39 A description of the early use of the Cassell process and dry and wet-crushing can be found in McAra's account of the Martha Ivline. See McAra, J .B., Gold Mining at LfI"at"hi: 1878- 1952, Waihi: Waihi Historical Society, 1 978, pp.89-94. 146 INNO V ATION DYNAMIC world to trial the Cassel cyanide process. The American-based Cassell Company took a percentage of the profits in payment for the use of its process. Encouraged by the success of the experiments, the company erected their own factory in 1 890 to work the mine a n d other claims. New Zealand Crown Mines Ltd., constructed its first crushing plant in 1 889 and by 1 896 had constructed two considerably larger plants. Overall, between 1 89 1 and 1 896, capital investment in the hydraulic gold mining industry increase d 228 percent and employment rose 50 percent, adding another 249 jobs. The rate of increase in job growth was 3 . 8 times faster than the population growth rate. The hills of the Karangahake Valley outside Waihi reverberated with industry. Trains delivered quartz from the mines, new claims were blasted out of the hillsides, stamp-batteries pounded through the day. Each stamp head weighed 500 lbs and stamped at a rate of 1 1 0 stamps per minute, the noise could be heard a mile away. It did not deter entrepreneurs. In 1 89 5 , a 40-stamp battery was constructed with a cyanide plant to work the Ivanhoe claim, a 50-stamper plant at the Talisman claim in 1 899, and a colossal 1 00-stamper battery erected at Waikino to work the Waihi mine of the Waihi Gold-mining Co. This was in addition to the 90-stamp battery in operation at the Waihi mill itself. 4() Where the plant and machinery for such industrial development came from was equally vital in economic development terms. The expansion of a local engineering industry was aided from the innovation in hydraulic gold mining. The development o f the firm A. and G. Price was one such example. Brothers Alfred and George Price had both had served engineering apprenticeships at the woollen-milling town of Rodborough, England, before immigrating to New Zealand in 1 868. With limited capital, they rented a small shed and stable in Onehunga as their first engineering shop. Being engineers, the pair were not only able to design and build their first product, a bench-mounted flax dressing machine, but they could also build their own six­ horsepower steam engine to drive their various lathes and machinery, minimising their initial needs for capita1.41 In the first 1 2 months of production, the Price brothers were able to sell 1 00 of their patent flax dressing machines and employ six staff. Within two years of founding 40 At the turn of dle century the Waikino battery was the second-largest stamp battery in the world. McAra, Gold Minillg at Waiht; p.201 . 41 Vennell, C.W., Mel1 ofMetai: The Story of A.al1d G. Price Lld. 1868-1968, Auckland: Wilson and Horton Ltd, 1 968, pp.6-7. 147 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT their business, staff numbers had increased to 23. For the Price brothers, limited start-up capital did not hinder their expansion. Their skill, as much as their finances, gave them entry into the market; the expanding economy enabled them to trade their way up. Taking advantage of the interest in the flax trade, the Prices produced all the equipment necessary for other would-be entrepreneurs to start their own flax mill. For £1 80, Prices supplied three flax dressing machines, a water wheel for driving the machines, shafts, pulleys, a press for packing fibre, and assorted equipment.42 They then followed a similar interest in the gold mining industry. In 1 87 1 , the Price brothers took the gamble of relocating their fledgling factory from Auckland to Thames.43 It was a risk, but if the hydraulic gold mining industry expanded then Prices were in an optimal geographic position to service the new market with heavy industrial equipment. Gold had been discovered in Thames in 1 867. By 1 87 1 , 256 gold companies had been floated to exploit this new opportunity. Over 50 stamp batteries were in operation by the time the Price brothers arrived in Thames to set up their works. Price brothers manufactured equipment to order, capitalising on their expertise and the need for industrial equipment in isolated locations. Over the next few years, they extended their range of manufactured articles to include water pumps, water wheels, ship engines, propellers, flax machines, and timber jacks. In 1 88 1 , Price brothers entered shipbuilding, constructing the 22-ton cutter-rigged paddle steamer, Patiki. During the expansion of mining activities at nearby Waihi, Prices provided much of the plant and equipment to the various stamper batteries . In 1 89 1 , for example, they outfItted the 20-head stamper battery for the Crown Mines Company at Karangahake with 900lb stamper heads. In addition, in 1 895, they provided a 20-stamp battery for the Talisman Company, a 40-stamper plant for the Woodstock Company, constructed the l OO-stamp Waikino plant, and supplied a 60-stamper battery for the Moanataiari mine. The firm remained under the direct control of the Price brothers as a partnership until 1907, when it was reconstructed as a limited liability company due to the death of Alfred Price, aged 70. Share capital was set at £60,000.44 42 Interestingly, tIus figure of £1 80 was not too far from the £231 for plant and maclUnery per mill suggested by Ce/wls statistics in 1 886, the first year the flax industry returned figures for capital investment. 43 It appears that for three years the Price brothers kept both their Auckland works and the new Thames plant in operation as the Auckland market for fla.'{ maclUnes was still quite buoyant. In addition, Price brothers used their Auckland plant to supply their first contract as railway engineers constructing carriages and wagons in 1 873. See Vennell, Men of Metal, pp.8-9. 44 Both of the Price brother's sons continued in the firm. See Vennell, Men of Metal, p.37. 1 48 INNOVATION DYNAMIC The development of gold dredging in Otago provided similar contracts for the South Island engineering industry. Across the colony the number of engineering plants rose from 35 in 1 880, to 102 by 1 900; employment increased from 950 to 3397 and capital investment in the industry more than doubled to £366,363. In number of works, the gold mining industry rose to a peak of 1 68 in 1 895, then fell away to 90 by 1 9 1 0. Auckland and Nelson were the dominant provinces for capital investment and productive capacity. By way of comparison, the capital directed to gold extraction in the Auckland region alone, was twice the capital invested nationally in the coal industry.45 By 1900, there were over 4000 people working in the hydraulic gold industry and by 1 902 gold production had again risen to 507,852 ounces per year at a value of £1 ,95 1 ,426. So far in this section we have seen how innovation in gold extraction and production, through the application of hydraulic and chemical processes, re-invigorated the gold indusu-y in the colony from the mid-1 880s. Unlike the initial gold rushes, which had seen a movement of people, this second wave of gold-fever triggered a move of industrial capital. However, economic benefits also accrued from complementary innovation as firms benefited who were supplying entrepreneurs engaged in gold exploration. The following section explores the innovation of dairy products into United Kingdom and Australian export markets. Once again, entrepreneurs successfully pursued technological innovation, supported by small-scale capitalism. INNOVATION IN DA IRY PRODUCTS In the early period of New Zealand's existence, dairying was adopted as a means to augment subsistence farming, providing butter and cheese to local communities.46 In these small communities, the general store acted as a point of exchange between farmers, who paid in butter or cheese, and the storeowner who sold the products to his other customers. Some records suggest that cash rarely changed hands.47 The possibility of dairying as an industrial activity did not emerge until the period post-refrigeration. And as the subsequent increase in the number of dairy factories showed, its adoption was as �5 In 1910, no figure for capital investment was given, however the figure for 1 905 was £310,094. This had decreased from 1900, when investment in machinery and plant was £372,093. 46 See \\i'arr, Eric, From Btlsh Btlm to Btltter: a Journry ill Wordr and Pictures, Wellington: Butterworths, p.36. 47 See for example the accounts of J ames Roulston as cited in NigeI Smith's, Hen/age of Indtlstry, p.196. 1 49 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT much about the importation of technology, and the acceptance of the factory system for producing butter and cheese, as it was about advances in refrigeration.48 It was evident dlat New Zealand cheese makers and butter producers ill the 1 870s did not have the expertise necessary to export and early attempts often failed. Butter was either packed in brine, tinned, or salted. Brine leached out of kegs, oil from tinlber leached into butter; tainted, the product resembled 'axle grease' with a pungent fish-like odour.4� Interestingly, this was not the case widl cheese makers in me United Kingdom and Ireland who, prior to refrigeration, supplemented New Zealand's local production. Not surprisingly, some of the colony'S earliest entrepreneurs who sought to enter this market adopted dairying technology from overseas. One of the first was the promoter behind the initial shipment of frozen meat in me Dunedin, William Davidson. Davidson, and his manager Thomas Brydone, representing the New Zealand and Australian Land Company constructed on the company's Edendale estate (north-east of Invercargill) , a purpose built cheese and butter factory costing £ 1200 . The plant was in operation prior to the sailing of the Dunedin. It was an ambitious, but well-planned scheme. Davidson laid out Edendale according to a plant he visited in Canada, and the dairy factory became a model for early producers. Initially, Edendale produced only cheeses commercially, successfully winning the government bonus in 1 883 for the ftrst export of 50 tons of cheese from the colony.511 Other entrepreneurs hired skilled butter and cheese makers to help them enter the new market. For example, the success of Wesley Spragg in establishing the factory system in Pukekohe was due in part to hiring a Danish butter maker as factory manager.51 Spragg had originally headed the dairy department of the Auckland-based New Zealand Frozen Meat and Storage Company in 1 883. After the company's demise, Spragg purchased an existing cheese and bacon factory and converted it to a milk receiving station. Knowing the problems with inconsistent quality in butter supply, Spragg aimed 48 The first dairy factory opened in New Zealand in 1 871 at Highcliff on the Otago Peninsula, the work o f Scots-born John Mathieson. But it was another decade before cheese and butter production emerged as a viable export commodity. See for example Aldridge, G.F., and C.W. Burnard, A history of the National Dairy Association of New Zealand 1894-1984, Masterton: Printcraft, 1 985, p.1-12. 49 Indeed the advent of refrigeration did not solve all dle problems of transporting such a perishable commodity over long distances and difficulties widl butter packed in kegs persisted until the invention of the enamel-lined butter box by Auckland chemist James Pond in 1 885. 50 The bonus was £500. 5! See Warr, From Bush Bt/rn to Butter, p.85. 1 50 INNO[/ATION Dl'NAlVlIC to centralise the receiving of milk at Pukekohe, then send the cream by rail to Auckland for further processing. The Pukekohe factory was upgraded and expanded with financial backing from London-based ftrm, Lovell and Christmas, which marketed and distributed butter in the United Kingdom; by 1 892, Spragg was processing cream from over 250 farms. Likewise , Spragg's chief regional competitor, Henry Reynolds, hired American David Gennell to manage his first factory in the Waikato. Henry Reynolds, a Waikato entrepreneur, constructed his fmt dairy factory in 1 886 at Pukekura, outside Cambridge. In a pattern similar to the rise of the Dunedin brewer, Speight's, Gennell's skill as butter maker assisted Rcynolds to secure first prize at the Melbourne Exhibition in 1888. Sales increased as a result of this publicity, and Reynolds was able to export butter to Australia, China, Hong Kong and England. To facilitate his expansion in the United Kingdom, Reynolds constructed a butter cool store at Hay's Wharf in London-the largest of its kind. By 1 894, his butter factories and creameries in the Waikato were producing 300 tons of butter per year.52 However, the ambitious entrepreneur encountered financial difficulties, and he was bought out by Spragg in 1 896.53 One of the important distinctions between dairying and frozen meat production was the different processing requirements. Cattle could be easily herded or transported to freezing works for processing. There was no interim processing stage, nor would stock deteriorate while waiting for slaughter. Milk offered a different kind of challenge. Product quality varied gready, milk deteriorated quickly, and it had to be skimmed to remove cream before processing as butter. To achieve more efficient production, promoters constlUcted skimming stations as an intermediate step between farms and dairy factory. Interestingly, while industrial statistics detail the increase in dairy factories, they do not report the investment and growth in skimming stations, which were equally important in the productive process for butter. A single butter factory might support several dozen skimming stations, where milk would be received and the cream mechanically skimmed. For example, Wart records that on the sale of Spragg's business to the New Zealand Dairy Association in 1 901 , his two butter factories, Pukekohe and 52 Reynolds was also the originator of the 'anchor' brand. 53 Equally the government initiatives in this industry benefited from the industry experience of Scottish­ trained John Sawers the first Government appointed Dairy Expert in 1889. 1 5 1 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT Ngaruawahia, supported 40 skimming stations in the district. The output of these two factories was 1200 tons per year. 54 The skimming process changed gradually after 1 897, when home separation was introduced providing farmers with the ability to separate cream from milk on the farm, often using Scandinavian-manufactured separators. The adoption of home separating machinery, a complementary good in Menger's economic schema, in itself provided an opportunity for promoters to enter a new market. Danish-born Carl Dahl, for example, commenced production of wholesale tents, cordage, and waterproof clothing in Palmerston North in 1 885. In the 1 8905, Dahl looked at diversifying and used his contacts in Denmark to import Danish cream separators. He supplied this new market from 1 900 to 1 92 1 , when he sold his business to the National Dairy Association of New Zealand. ENTREPRENEURS AND THE D"-\ I RY I NDUSTRY As with the production of frozen meat for export, possibilities in the dairy industry attracted investors and promoters from outside the agricultural community. Historian David Yerex identified four types of entrepreneurs who entered the race to manufacture butter and cheese for export consumption: merchants, landowners, agents of British [ums', and farmers' cooperatives.55 These were the dominant groups, but Yerex did not accentuate the importance of the rust group, the merchants, in the subsequent expansion of the dairy industry. Few had a farming background, yet it was their trade skills and commercial networks that that enabled them to maximise this new opportunity. The merchants' position in the rural community as provider of goods, and more importantly credit, meant they had access to the raw material and the cash-flow with which to commence an enterprise. Taranaki merchant Chew Chong was a case in point. Exporting the Jew's ear' fungus to China gave him valuable exporting experience, while his branch network of rural stores provided useful links in the farming community. Commencing a dairy factory for Chew Chong was a way to increase his trade in butter and cheese, seizing a new and expanding opportunity with resources he already had. Chinese-born Chew Chong opened his Eltham butter factory in 1 887. 54 See Warr, From Bush Bum to Butter, p.86. 55 See Yerex, David, Empire of the Dairy Farmers, pp.65-68. 1 52 INNO VATION D'rNAlvlIC Not all the entrants to the dairy industry were immigrants . New Zealand-born merchant Newton King established his first auctioneering business (aged 25) in partnership with Robert Bauchope. The p artnership lasted a year. In 1 88 1 , King commenced the stock and station business , Newton King Limited. Following a programme of branch expansion in stock and station outlets serving the farming community around New Plymouth, it was perhaps not surprising that King too entered the dairy processing industry in 1 888 with the Crown Dairy Company. Eventually, he maintained 21 dairy factories as part of his cooperative. Consistent with the entrepreneurial personality, King continued to pursue new ventures in emergmg industries even late in life. In 1 908, aged 53 , he began supplying cars through the Calthorpe Car Agency; in 1 909 he commenced importation and supply of milking machinery through the Ridd Milking Machine Company. 56 New Zealand-born Charles Wilkinson started work as a s tore manager before commencing his first venture, CA. Wilkinson Merchants, in 1 889. Like Newton King and C hew Chong, his mercantile interests with the rural community were an obvious launching point for commencing a dairy factory, which he did in 1 89 1 , aged 23.57 Entrepreneurs entered the dairy industry with backgrounds other than the stock and station industry. Henry Brown and William Corpe were two dairy factory owners with backgrounds in the timber industry. English-born Henry Brown, a carpenter from missionary parents, opened his first sawmill in 1 863 at the age of 2 1 in Inglewood. Brown, who was to become a central figure in the development of the town, branched out into other enterprises. He started a j oinery factory, and in 1 882, the same year as the DlInedin shipment, commenced the Moa Cooperative Dairy factory. For Brown it provided not only an avenue to enter what appeared to be an emerging industry, but also an outlet for products from his joinery factory including butter boxes and cheese crates.58 William Corpe immigrated to the colony from England in 1 858 aged 22, and his career bore sinUIarities to the other dairy entrepreneurs. Corpe settled in Makino where 5(, 'Newton King Limited centennial, 1 879-1 979', Taranaki DailY Ne}})s, 5 October, 1 979. 57 Another merchant also to enter the dairy industry was Henry Manoy. Born in New Zealand in 1 879, Manoy and his brother owned a number of shops in Motueka outside Nelson. In addition the 1\fanoy brothers ran a dairy factory and a bacon factory. 58 A dairy factory owner also with a trade background was New Plymouth born James Patterson. Aged nine Patterson went to sea as a cabin boy and in 1 882, after completing his blacksmith apprenticeship, opened his own blacksmith shop. He conducted this for 1 8 years before in 1900, aged 41, he began a process of farm buying and land development that was to characterise the rest of his business career. At his height he owned 35 farms, with some 4000 cows and dairy factory. 1 53 EI\I[REPRENEURSHIP AND ECONOMIC DEVELOPMENT he worked as a clerk then farm manager. At the age of 32, he started what would be the rUst of six entrepreneurial ventures. In 1 868, Corpe started a flax mill; in 1 872, he in opened a general store and transport company, and from 1 878 onwards, he established a number of sawmills supplying timber for railway contracts. In 1 884, Corpe founded the Makino Butter and Cheese factory-a venture that would prove to be the most successful of his career. In 1 903, he sold his Makino factory to a11Dther dairy entrepreneur with a mercantile background, Joseph Nathan. Nathan and William Goodfellow were two entrepreneurs who s tood out in the history of the colonial dairy industry. Both the entrepreneurs were notable for different reasons; Nathan for his successful adoption of dried milk through the Glaxo brand; and Goodfellow for the amalgamation and centralised marketing of the dairy industry. Goodfellow's entry into dle dairy industry was not unlike the other merchants discussed. Born in T e Awamutu in 1 880, he worked as a hardware merchant before s tarting a branch of an Auckland-based hardware fIrm in Hamilton, at the age of 2 1 . Thereafter, he worked for Green and Colebrook general merchants a s manager. In 1 909, Goodfellow founded the Waikato Dairy Company after being left with dairy plant and machinery following a customer defaulting. It was not long before all of Goodfellow's interests were absorbed in the dairy industry. In 1 9 1 5 he started the Waikato Cooperative Cheese Company. In 1 919 he merged with his competitor, Spragg's New Zealand Dairy Association, forming the New Zealand Cooperative Dairy Company. The company then pursued a process of acquisition to become the largest dairy company in the colony. Goodfellow remained managing director of the cooperative until 1 932, when he left to pursue other initiatives. Goodfellow undertook at least 1 1 different entrepreneurial ventures over the course of his commercial career. Interestingly, the same spirit of cooperation that characterised his management of dairy companies imbued his other schemes, which were often undertaken with partners. While it is fair to state that the farming community were a vital part o f the rise and success of the dairy industry, it is also accurate to state that those who inititally gave the industry the most momentum and created the largest economies of scale were those outside the farming community.5� 59 One of the reasons for the rise in the popularity of the cooperative form of dairy factory ownership among farmers was fUlancial. As Yerex pointed out in Empire of the Dairy Farmers, p.68. 'For others it was a matter o f principle not to allow outsiders to dictate terms. More and more dairy farmers were becoming aware that the retailers and agents in Britain, the shipping companies and the factory owners in New Zealand, were all making sure of their profits; the suppliers got what was left.' 1 54 INNOVATIO DYNAMIC Wesley Spraggs, Chew Chong, William Corpe, Newton King, ]oseph Nathan, and William Goodfellow entered the dairy industry from mercantile backgrounds. These men were able to leverage their talents as managers and entrepreneurs, as opposed to having in-depth technical skill in agriculture.60 This was vital. As much as the dairy industry needed product development skills, it needed the development of effective factory management systems and efficient distribution channels. These skills were not agriculturally based-they were entrepreneurial and commercial skills. F I G U R E 1 9 BUTTER EXPORTS : 1 8 5 3 - 1 9 1 0 £2,000,000 £1 ,800,000 £1 ,600,000 £1 ,400,000 £1 ,200,000 £1 ,000,000 £800,000 £600,000 £400,000 £200,000 £0 "" 00 "" 00 "" tr) tr) -.0 -.0 r- 00 00 00 00 00 ...... Source: Statistics of New Zealand 1 866-1910 Some farmers did enter the production of dairy produce through the cooperative system of dairy company ownership. For some it was a financially advantageous 60 The effect of entrepreneurship, especially mercanrile and industrial entrepreneurship, on agriculrural wealth has not been sufficiently explored in ew Zealand business history. Steven Eldred-Grigg, for example, suggests social and political pressures as the reasons behind the fall of New Zealand's gentry, rather than the rise of an entrepreneurial class. See Eldred-Grigg, Steven, 'Whatever Happened to the Gentry? The Large Landowners of Ashburton County, 1 890-1 896', New Zealand JOllrnal of History, 1 1 : 1 (1977), pp.3-27. 1 55 ENTREPRENEURSHIP A.ND ECONOMIC DEvELOPMENT undertaking as having their own dairy factory gave them control of product quality and price. Yet, most of the cooperative dairy factories were small. By 1 886, there were 36 cheese and butter factories in the colony, with the largest concentration (1 6) in the Auckland province. The average size o f a dairy factory was three employees. Even so, they required a capital investment larger than many single proprietors could manage­ average capital investment per factory in 1 896 was £1 320. By 1 89 1 , the number of factories in the colony had doubled to 74, average capital investment per factory, £1357, and average staff size was four. It was the following five years that witnessed the most dramatic rise in dairy exports and factory fever. The number of cheese and butter factories more than doubled to 1 70; the number of factories in the Taranaki Province increased by 42. By 1 896, the industry had risen to the 1 1 th in terms of capital invested in land, buildings, and plant (£234,006), rivalling the investment in the colony in gold dredging. Many of those companies registered between 1 891 and 1 896 had a share capital of a few thousand pounds. The Okain's Bay Co-operative Dairy Factory Company, for example, had a share capital of £1 000; the Cheltenham Co-operative Dairy Factory Company in Feilding had a share capital of £2000; the Cheviot Co-operative Dairy Factory Company had a share capital of £4000. The three largest establishments founded during this period were the New Zealand Dairy Farmers Co-operative Company in Dunedin in 1 893 with a share capital of £1 00,000, the New Zealand Farmers Dairy Union of Wellington (£50,000), and the Canterbury Farmers Co-operative Association, registered in 1 894 with share capital of £50,000. By 1 90 1 , the dairy industry had risen to seventh place in industrial capital investment in the colony. There were 247 factories in operation, which were benefiting from greater national cooperation following the 1 894 Dairy Industry Act.61 By 1 9 1 1 , the number of butter and cheese factories in the colony had increased to 338. Overall, these factories employed nearly 1 500 staff, and produced 541 ,85 1 cwt. of butter (valued at £2,685,1 03) and 474, 1 1 1 cwt. of cheese (valued at £1 , 1 99,677)J,2 Compared to the colony'S other major exports, in 1 901 the dairy industry was worth more than gold exports, and only £900,000 behind exports of frozen meat. Over the next ten years, the dairy industry txipled in export value, rivalling wool products. By 1 930, the dairy industry 61 }"mong other things the act allowed for export grading and factory inspection. 1 56 INNOVATION DYNANIIC was the colony's leading export staple. This remarkable transformation had come about from a mix o f forces for change working together: technology transfer, new product development, the adoption of the factory system, improved distribution systems, and the role o f entrepreneurs outside the immediate agricultural community to coordinate and apply these innovations. C ON C L U S I O N This chapter has argued that innovation, brought about b y entrepreneurs, had a direct impact on the size and stlUcture of the colonial economy. It has examined three of the export staples: frozen meat, gold, and dairy exports. In each of these industries, innovation, pursued by entrepreneurs, was the trigger for a subsequent expansion in the size of the industry and its ability to service foreign markets. In the export of frozen meat, this innovation was the advent of refrigeration; in the production of gold, the innovation was the application of hydraulic gold mining, then the use of the cyanide process. Finally, in the export of dairy products, the innovation was the use of the factory system-aided by technology transfer, which enhanced both the productive capability of the industry and its ability to get produce into foreign markets. In each of these industries, the joint-stock company was used by entrepreneurs to galvanise interest in the venture and raise capital. It enabled capital to be sourced from a wide base. The large number of fIrms floated in these industries and their high capitalisation rates were evidence of the interest shown in commercial investment. Share capital, rather than loan capital, seemed to be the preferred form of industrial fInance during this time. As markets expanded in these export sectors the original promoters were joined by other entrepreneurs. Then, once the initial innovation had established its viability in the market, still more invested capital and resources. However, it is diffIcult to make a case for the diversion of capital from other possible forms of industrial investment, because the total industrial base of the economy expanded during this period. In other words, it was not apparent that a limited stock of funds was being diverted between preferred schemes. Rather, an increasing stock of funds was being invested in entrepreneurial ventures as well as other forms of industrial activity. 62 Only 126 of these enterprises were organised as cooperatives. The balance was a mix of sole proprietorships, public companies and private companies. 1 57 ENTREPRENEURSHIP AND ECONOMIC DE�'ELOPMENf Complementary goods and services expanded in industrial activities allied to the initial innovation. The number of ships plying freight routes between the United Kingdom and New Zealand increased along with the size and capacity of these ships. Specially built vessels were brought in to allow the increased exploitation of the innovation. In the gold industry, the demand for stamper batteries, plant, and equipment enabled local engineering fIrms to expand to meet this demand. These fIrms then exploited other lines of business activity as their capacity to do so increased. In the engineering indusu-y, the number of fIrms and the amount of capital and labour steadily increased. In the dairy industry, milking machines and cream separators allowing room for other entrepreneurs to provide and service such equipment. In the three industries discussed in this chapter, primarily new fIrms exploited the emerging opporturuues. Existing businessmen, promoters, and new entrepreneurs floated neW companies, increasing the overall s tock of fIrms in the market. Similarly, this chapter suggested that the pursuit of entrepreneurship was not the domain of existing enterprises; rather, new specialist fIrms were created to pursue the innovation. In summary, what emerged in the colonial economy was a unique dichotomy that characterised the latter part of the nineteenth century in New Zealand. For paralleling the decline in staple prices, land prices, and increased migration rates was the development of new export markets and increased industrial activity. This was not to suggest that the economy of the 1 880s and 1 890s was one of endless advancement, untouched by failure or diffIculty. This was not the case. Land prices fell, unemployment in some sectors rose, and there is some evidence that bankruptcy rates increased. But these indicators were only one side of a set of economic scales that were counterbalanced by aggressive population growth, continued government spending on infrastructure, continued positive balance of payments, and entrepreneurial activity that stimulated new industries, expanding overseas markets. I f depression is a descriptor used of the 1880s and 1 890s in New Zealand then enterprise must be an equally used term; the two events were not mutually exclusive. This marks the conclusion of Part Two of this thesis that has considered the entrepreneurial economy. It has looked at some elements in the economic and political environment that worked to create a positive climate for entrepreneurial activity in the colonial economy. The following section of the thesis considers in more detail the actors themselves. It continues the theme stated in the introduction of this thesis, where it was suggested that the layers in the economy needed to be peeled back to allow a fuller 1 58 INNO � 'ATION DYNAMIC understanding of the forces at work in the colonial economy. The entrepreneurs, and the enterprises they created, will now be examined using case analysis to further understand entrepreneurship and its relationship to economic development between 1 880 and 1 9 1 0. + + + + 1 59 El\JTREPRENEURSHIP AND ECONOMIC DEVELOPMENT PART 1 1 1 THE COLONIAL ENTREPRENEUR 1 60 CASE ANALYSIS APPROACH 5 A CASE ANALYSIS A P PRO A C H TO BUSIN ESS HISTORY For such a project, the only possible method was observation - repeated until the eyes ached; than a call for assistance from the different human sciences; and above all systematic comparison, the bringing together of experiences of the same nature, without being afraid, when dealing with systems that changed so little, that anachronism would lay too many traps for us during these necessary confrontations.1 From the outset of this thesis, it was stated that one of the aims of tllls research was to investigate the entrepreneur at several levels in the economy. The preceding chapters have exanlined some aspects of the econonlic context entrepreneurs found themselves in during tllls period of history. Case analysis of a group of entrepreneurs provided another perspective, and such a study has not been undertaken before in New Zealand business history. While the results cannot be taken as applicable to the general population, as case study does not generalise except to theory, the cases nevertheless exemplify entrepreneurial behaviour and business activity in New Zealand at this time, in a way that has not been available previously. The purpose of this chapter is to discuss the research technique adopted for case analysis in tms thesis and to present some of the basic findings of the research. A case group of 1 33 entrepreneurs were selected, and tms chapter outlines how tllls was acmeved. In particular, it will discuss the criteria used in selection and the types of questions investigated. It will present some of the summary characteristics of the case 1 Braudel, Fernand, Civili::::.atioll and CapitahJm 151b _ 18i11 Century, Volume II: The If7heels of Commerce, London: William Collins Sons and Co, 1 982, p.21 . 1 6 1 ENTREPRENEURSHIP AND ECONOMIC DET/ELOPMENT analysis and discuss some of the similarities/differences between this study and other business history research using case analysis. The use of s tatistical techniques and case analysis to analyse the past is not new. Business historians and social historians have used this technique to study industries, groups of fIrms, business elite, families, households, communities , occupations, and entrepreneurs. Perhaps the best-known of all such studies was that done by Alfred Chandler, Strat egy and St ructure, where he presented an analysis of four fIrms to illustrate his thesis that a fIrm's strategy and its organisational structure were inherently related: General Motors, Standard Oil Company, Sears Roebuck and Company, and DuPont. 2 The advantages and disadvantages of such an approach are clear. New insights can be gained into the workings and characteristics of a particular group of individuals or cluster of fIrms, and these discoveries add to our understanding. Similarly, however, a number of business historians have cautioned the need to embed such an approach within the context of its environment. Geoff J ones noted recently: It has been a long-term aim for many (if not all) business historians that their subject should evolve from producing well-written empirical historical case studies to delivering valid generalisations about business s tructures and behaviour. It would be an exaggeration to say that the 1 990s has seen great advances in tllls respect, but a bold generalisation nlight be that there has been some movement in that direction.} Using case analysis, business and economic historians have studied a range of questions concerning the entrepreneur. Some have examined particular debates, such as Bernard Sarachek's investigations in the Horatio Alger myth using case analysis of Jewish American and American entrepreneurs from the nineteenth century.4 William Miller's work has used similar groupings of American industrialists and political leaders to 2 See Chandler, Strategy and Structure. 3 Jones, Geoffrey, 'Company History and Business History in the 1 990s', Business Records and Business History: Essq)'s ill celebration of tbe 5(jI' Ani1iversary of tbe Danish Natiollal Business Arcbives, Denmark: Erhvervsarkivet, 1 998, pp. 1 1 - 12 . 4 For Horatio AJger myth see Sarachek, B. , '.-1.merican Entrepreneurs and the Horatio Alger Myth', jourllal of EfOtlomic History, 38 (1 978), pp.439-56; Sarachek, B., 'Jewish .-1.merican Entrepreneurs', Tbe jourllal of ElYJllomic History 2 (1 980), pp.359-72. 1 62 G4SE ANALYSIS APPROACH consider the characteristics and backgrounds of the business elite.s Case analysis of a particular entrepreneur or a particular firm has been a popular line of enquiry, and there are numerous s tudies that use this approach.G Some researchers have used case analysis as a means of investigating particular industries, such as the work of G.B. Magee on the Victorian and Edwardian British paper industry.7 Other researchers have used case analysis to examine the prevalence of entrepreneurial activity in society at a particular time, such as Britain in the late nineteenth-century.R Some, such as H. Berghoff and R. Maller, have used large case analysis in comparative studies between different cultures.9 The researchers conducting these investigations have often used similar methods. A sample or case group of entrepreneurs has been constructed using sources such as biographical dictionaries, Who 'J IVho, industry histories , company histories, and biographies. The sample has then been analysed with respect to key criteria, such as the migrant status of the entrepreneurs, the father's occupation, educational levels, birth order, family social status, wealth, career mobility, and the entrepreneur's relationship with his father. Among larger studies examining multiple entrepreneurs, the research has fallen broadly into two groups. The first group has comprised studies that have investigated business elites, defined as captains of industry, business leaders, CEOs, and managers who may have lUn large or dynamic furns, but were not the founder or owner of the fum. Studies, such as those by Miller and C. Wright Mills, which used these criteria, have found that the elite were well educated and came from upper social classes with wealthy S For business elite see iYIiller, W., 'American Historians and the Business Elite', Journal ofEcollomic History, 9 (1949) , p . 1 84-208. Mills, C . W., 'The American Business Elite: A Collective Portrait', The Journal ofEalflomic History, 5 (1 945) , p.20-44. Also, Supple, Bany E., 'A Business Elite: German-Jewish Financiers in Nineteenth-Century New York', Busil/ess History Review, 3 1 :2 (1 957), pp.1 43-1 77. G See for example Boje, P., 'A Career Approach to Entrepreneurship: The Case of 1110mas B. 111rige' , BNSillllSS History, 35 (1 993), pp.33-44. 7 Magee, G. B., 'Competence or Omniscience? Assessing Entrepreneurship in the Victorian and Edwardian British Paper Industry', Busilless History Review 71 (1977), pp.230-59. 8 For debates about entrepreneurial activity in Britain during the late nineteenth century see Kirby, M.W., The Declil1ll of British EWllomic Power Sillce 1870. London : George Allen and Unwin, 1981 ; Mathias, P., The First IlIdustrial Nation: All Et"OlIomic History of Bn"tail1 1700- 1914, 2nd ed. New York: Methuen, 1 983; Pollard, S. 'Entrepreneurship, 1 870-1 914.' In Floud, R., and D. McCloskey (eds.), The Ecollomic HIstory of Britain SincII 1 700. 2nd ed. vol. 2, 1 860-1939, Cambridge: Cambridge Univ. Press, 1 994, pp.62-89. 9 Berghoff and Mbller investigated over 1 000 German and United Kingdom entrepreneurs comparing their social and educational backgrounds and achievements. Berghoff, H., and R. Moller, 'Tired Pioneers and Dynamic Newcomers? A. Comparative Essay on English and German Entrepreneurial History, 1 870- 1 9 1 4', Economic HIstory Review, 47 (1 994), p.262-87. 1 63 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT or prosperous families. They had professional or executive fathers, commenced work later in life, and they were not foreign born. 1U Conversely, studies that have concentrated on owner-entrepreneurs, such as those by Sarachek for example, have found that entrepreneurs began work earlier in life, were less likely to have had a college education and came from middle-class families where the father was most likely to be a business owner. I I While not applicable in every circumstance, findings such as these have expanded our understanding of the backgrounds and characteristics of entrepreneurs at particular times and periods. Arguably, some findings, such as the incidence of the fathers of entrepreneurs who were business owners, appear to be applicable regardless of time or culture. 12 CASE ANALYS I S : GE ERAL I SSUES The selection of entrepreneurs for this study involved two stages: firstly, to establish criteria for deciding who might be in the study; secondly, to locate the entrepreneurs. The work of Frank Knight and Joseph Schurnpeter was used to differentiate entrepreneurs from business people in general. Knight's definition of entrepreneurship emphasised the entrepreneur's ownership of the resources of production and responsibility for decision taking. Knight stated: 'The entrepreneur is the owner of all real wealth, and ownership involves risk; the coordinator makes decisions, but it is the entrepreneur that accepts the consequences of decisions.'13 In addition, J oseph Schumpeter provided useful clarity as to the functions and bounds of entrepreneurial behaviour, emphasising the newness or generative aspects of entrepreneurial endeavour. Noted Schumpeter: ' . . . the function of entrepreneurs is to reform or revolutionise the pattern of production by exploiting an invention or, more generally, an untried technological possibility for producing new commodity or 10 See Mills, 'TIle l1.merican Business Elite', (1 945); Miller, \V, 'American Historians and the Business Elite', (1 949); Berghoff, H., and Malier, R., 'Tired Pioneers and Dynamic Newcomers?' (1 993) . 1 1 See Sarachek, 'American Entrepreneurs and tile Horatio Alger Mytil', (1 978); Sarachek, Jewish American Entrepreneurs', (1 980); Collins, O. F., D.G. Moore, and D.B. Unwalla, The Ellterprising Mall, East Lansing: MSU Business Studies, 1964. 1 2 Lam, S. K. S., Portraits of Succesiful Entreprelleurs alld High-FlYers: A Psychological Perspective. Aldershot: Ashgate, 1999; Cooper, A.c., and W.e. Dunkelberg, 'Entrepreneurial Research: Old Questions, New Answers, and Methodological Issues', American Journal of Small Busilless, 1 1 (1987), p.1 1 -23. 1 3 See Knight, Risk, Ullcertailll!y alld Profit, p.45. 1 64 C4SE ANALYSIS APPROACH producing an old one in a new way, by opening up a new source of supply of materials or a new outlet for products, by reorganising an industry and so on. ' 1 4 Taken together these definitions encompass many of the elements described in the definition of entrepreneurship proposed at the end of chapter one in this research and were used for the case analysis because of their operational attractiveness. A short list of questions could be devised to decide whether or not someone came within the bounds of these definitions . The questions were: 1) Did this person have an ownership stake in the firm they were involved in? 2) Did they have responsibility for making decisions regarding the firm's activities and direction? 3) Did they have to accept the financial consequences, good or bad, of those decisions? 4) Were they expanding the firm beyond its original confines using innovation? CASE "-\NALYSI S S IZE There are advantages and disadvantages associated with small and large samples, and any study is a compromise between depth and breadth. One approach for the present research would have been to study a small number of individual entrepreneurs and their firms, say between three and six, using in-deptll primary research. Such a case­ study approach can yield rich insights into the motives and behaviours of a few individuals, and there are examples of such case-analyses in business history research using this approach. l s The other choice is breadth-to select a larger group of individuals (perhaps 1 00 or more), for case analysis. Such a choice inevitably loses the detail of the first approach, but is able to reveal trends, common characteristics, or even difference, across a group. Behaviours which appear significant across a few cases may be isolated characteristics, 14 Joseph ,-1.. Schumpter, Capita/ism, Soda/ism alld Democracy, London: George Alien Unwin, 1 976, p .132. IS For discussion of case analysis and its limitations see Eisenhardt, K.M., 'Building TIleories from Case S tudy Research', Academy �lManagement Review, 14 (1 989) p.532-550; Eisenhardt, K.M., 'Better Stories and Better Constructs: TIle Case for Rigor and Comparative Logic', Academy !if Management Review, 1 6:3 (1 991), p .620-627. Also Miles, M. and A.M. Huberman, Qualitative Data Anajysis, Beverly Hills, CA: Sage Publications, 1 984; Yin, R . , Case Sttldy Research, Beverly Hills, CA: Sage Publications, 1 984. Perhaps the best-known example of case analysis in the business history context is Chandler, A.D., Strategy and Stmcttlre, Cambridge, MA: MIT Press, 1 962. In an organisational setting see Lawrence, P., and J . Lorsch, Organization and Ellvironmellt, Boston: Graduate School of Business, Harvard University, 1 967. 1 65 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT when compared with a much larger group. It is similar to a photographer taking two pictures of the same subject. For one picture, the photographer shoots a close-up of a small group. For the second photograph, the photographer stands back, and, after changing lenses, shoots again. This time the photographer takes a wide-angle picture of the larger crowd, that the small group were a part of. Both pictures capture the same scene, but with different perspective and different texture. The wide-angle lens was the choice for this study. Having studied two New Zealand entrepreneurs in detail, Robert Laidlaw and David Levene,1 6 I was interested to take a larger case group of entrepreneurs and look for recurring patterns, trends, and difference. SELECTION The entrepreneurs were selected from a variety of sources: Scholefield's Biographical Dictionary, Dictionary of New Zealand Biography (both earlier and later versions), the Otago/ Southland Biographical Dictionary, Who 's Who, the yclopedia of New Zealand, newspaper reports, company histories, biographies, industry histories, and publications, such as Graeme Hunt's, The Rich List. The case group was non-random and included 1 25 men and 8 women, all of whom were born before 1 886. The sources listed above provided a list of over 500 names. This list was culled by asking the four questions listed above of each person. These questions separated those who were managers of a firm from those who were owner/entrepreneurs. In addition, the questions separated those who may have owned a business, but were not transforming it beyond its original economic size. Today, we would recognise these people as buying or running a business for lifestyle reasons as opposed to those who were actively pursing the further development and expansion of their firm. One final question was then asked of those who remained: Were they active in business in the period under consideration? A large number of possible participants were eliminated by this final question. Essentially these were people who settled in New Zealand in the 1 850s or 1860s, and had retired from active comrnercial life by the start of the 1 880s. To be included in this study, entrepreneurs had to have been active ill business in New Zealand for at least the first decade of the period under review. 1 6 Hunter, ran Robert Laid/alu: Mall for Our Time, Auckland: Castle Publishing, 1 999; Hunter ran, Dauid Levene: A Mall alld His Business, Auckland: Castle Publishing, 1 999. 1 66 CASE ANALHIS APPROACH BUS IN ESS ACTIV ITY Each year that a case analysis participant was behaving as an entrepreneur was recorded. For example, if someone completed their apprenticeship in 1 880, then worked for 1 1 years before setting up their own business in 1 89 1 (which lasted for the next 35 years), this person was recorded as being active as an entrepreneur in the decades: 1 890- 1 899, 1 900-1 909, 1 9 1 0- 1 9 1 9, and 1920-29. Any years an entrepreneur spent working for someone else, often at the start of his career, were not recorded as being involved in business activity, nor were those years after an entrepreneur retired. The table below indicates the spread of business activity from the entrepreneurs involved in this research. TM�LE 6 ENTRE P R E N E U R I AL ACT I V ITY Year 18605 1870s 1 880s 1 890s 1 900s 1 910s 1 920s 1 930s 1 940s 1 950s 1 960s Number 41 66 98 1 13 1 1 5 9 8 7 5 43 28 1 5 4 Percentage 30.8 49.6 73.7 85.0 86.5 73.7 56.4 32.3 21 . 1 1 1 .3 3.0 Source: Case Analysis New Zealand Entrepreneurs For the years, 1 880 to 1 909, the percentage of case analysis entrepreneurs undertaking new venture activity did not fall below 73 percent. The highest decade was 1 900-09, with 1 1 5 entrepreneurs (86 .5 percent) in the case group engaging in venture activity during this period. The 1 870s and 1 920s showed 49 percent or more of the case group engaged in entrepreneurial activity; by the 1 960s, this figure had fallen to three percent, with only four entrepreneurs active. If anything, this analysis showed the extensive careers that many entrepreneurs undertook, with some continuing their business careers well into their seventies and eighties. Retirement, it seemed, was not a popular life choice among the entrepreneurial class. Deciding how to characterise farming presented a particular challenge in this research. Was a farmer an entrepreneur? Farmers can display some characteristics associated with entrepreneurial behaviour. They can be self-employed, own the means of production, and bear risk, not knowing from one year to the next what their income might be. However, in the final analysis it was decided not to include farming as an entrepreneurial activity, but view it more as a professional or occupational choice in line with other overseas studies. Notably, some entrepreneurs purchased land and invested in farming activities. This was often to support other venture activity, for example, growing wheat as Josiah Firth did for his Auckland floutmill, or for land development as the newspaper proprietor, George Alderton, did in Kerikeri. Farming, for these entrepreneurs, was one 1 67 ENTREPRENEURSHIP AND ECONOMIC DEv'ELOPlvlENT of a number of ventures associated with controlling the supply chain, rather than the choice to be a farmer as a profession. C-\SE G ROUP S I ZE Three factors were considered when choosing the case group size: comparability, access, and execution. As regards comparability, it was the intention in this research to compare the findings with those of other researchers who have posed similar questions using entrepreneurs in different cultures and time periods. Other studies of this nature, such as those by Miller or Sarachek, have included 1 00 or more entrepreneurs in their samples. Having a similar sample size for this research would allow a more meaningful companson. Accessibility refers to the availability of material. Could sufficient material be located on 1 00 plus entrepreneurs to answer a question set? Like other international studies, this case analysis would make use of biographical material rather than primary records. For many entrepreneurs this was not difficult. Adequate biographical, company, family, or industry history existed that enabled the completion of case analysis. Other entrepreneurs proved more difficult. John Bycroft, James Pascoe, Robert Hannah, and others will have to wait for future studies, because sufficient biographical material could not be located. Thirdly, execution: How many entrepreneurs could be realistically studied in the time available for this research? A pilot study of 1 0 cases was undertaken to gauge the time involved and test the question set. While a list of over 500 possible names was initially assembled, 1 33 cases were finally chosen for the research. CASE AN/iLYS I S DOCUMENT The case analysis document was constructed over the period of two years, and it went through four revisions over that time to add additional detail, or improve the collection of data. The final version is included in Appendi'C B. Additional fields have been added since the study was completed to further improve data collection and analysis should the case analysis be used again. The case analysis instrument was divided into siX sections: background information; business activity, strategy, lifestyle, partnership, and failure. Each section included a range of questions relevant to that topic; business activity was the largest section. In total, 1 74 fields were created in an Excel spreadsheet to collate the 1 68 CASE ANALYSIS APPROACH information. After data input, basic statistical analysis was done on each category. What each section considered is now discussed. B.-\ CKGROUND Background information included the name, birth date, and death date o f the entrepreneur, their age at death, place of birth, ethnicity, and the New Zealand town or city they resided in for the longest period in their life. Background information on the entrepreneur's parents was also collected, such as the occupation of entrepreneur's father, and whether or not this occupation was the same as that of the entrepreneur. The number and type of jobs the entrepreneur had prior to their fIrst venture was collected as a way of understanding the level of experience and expertise an entrepreneur had prior to their fIrst venture. Occupational data was collected to see if entrepreneurs experienced a wide range of work and career experiences, or they focused on a particular career or profession. Migration was also investigated. A body of research exists on immigrant entrepreneurs and this study provided an opportunity to investigate this phenomenon in a New Zealand context. Questions considered included: What countries did immigrant entrepreneurs come from? When did they arrive? Were immigrants more entrepreneurial than New Zealand-born entrepreneurs? B US INESS ACTIV ITY The business activity section was the largest of all the sections. Firstly, basic business information was collected: the venture type (industry); the name of the venture (company or fIrm name); the year commenced (e.g. 1 901) ; the duration of the venture; and the years the venture lasted (if known) . The business strategy each entrepreneur used was recorded. Did the venture last for fIve years or more? This question was chosen as a way of exploring the failure rate of new fIrms. Space was included in the case analysis to record up to ten ventures per entrepreneur. In most cases this proved suffIcient. Where it was not, the detail of further ventures was not recorded, but the total number of ventures was noted. Venture activity was also analysed as to the age at which the entrepreneur started their ftrst venture and the age at which they started their most successful venture (usually the one they were most renowned for, or appeared the most lucrative) . Other data was added to this, namely, the number of ventures prior to most successful, total ventures the 1 69 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT entrepreneur founded, and total number of ventures the entrepreneur was involved in­ even where they were not the founder. Three categories for analysis had to be constructed while the study progressed. The first was: Why did the entrepreneur commence their first venture? An initial investigation of the entrepreneurs in this study revealed nine different reasons why entrepreneurs commenced their first venture. On a subsequent pass through the case group, such reasons were assigned to the entrepreneurs where appropriate. The same process was used for the sources of capital for an entrepreneur's first venture. Again, these categories were not chosen, but collected during investigation of the case group, so as new categories revealed themselves these were added until a final set of responses was established. This is not to say these terms are all-encompassing categories, or every possible stimulus of entrepreneurial activity, but, they adequately represented the group of entrepreneurs investigated here. STR.'\ TEGY The classification for strategy included both commonly used terms and more specific strategies. At a general level it was recorded if entrepreneurs acquired other firms or if they started up their own activities. Did they use vertical integration or horizontal integration, that is, securing elements in the supply-chain from raw material to final product, or did they spread out acquiring firms at the same level in the supply chain doing the same kinds of activities? These categories were further analysed as to whether or not the entrepreneur had started the firm themselves, or had purchased it as a going concern. Other definitions of strategy types used in the research are as follows: rocttJed ActilJiry and DiverJijication: Diversification was a strategic decision to minimise business risk, diversifying the business operations of a company into different products, markets, or geographic locations. For the entrepreneur, a fall in profits in one area of business might be offset by profitable trading in another. Focus was the converse of this s trategy; the entrepreneur concentrated activities in one area, cultivating in-depth expertise and industry knowledge.17 Aligned ActilJitieJ: This term was used to describe an entrepreneur starting up an activity aligned with their present business, yet could not be described as horizontal or 1 7 A full discussion of focus strategy versus a diversification strategy can be found in Ries, i'L, Focus: the Future of Your Company Depends Otl It, New York: Harper Business, 1 996. 1 70 CASE ANALYSIS APPROACH vertical integration. For example, a bakery might commence a confectionery business. This was not in itself a replication of the initial activity, nor was it in the supply chain, rather it was an aligned activity, using similar processes, skills, and business knowledge as the fIrst activity. Brand} E:'Pamion: This term related to those entrepreneurs who either started or purchased branch operations in different geographic locations. The opposite of this was to concentrate activities on one site and expand this single business unit; perhaps encompassing retail, wholesale, and production activities in the one location. This s trategy was termed capacity. LI FESTYLE This section of the case analysis investigated the public activities of the entrepreneurs. Were entrepreneurs involved in community boards, such as road boards, harbour boards, education boards , and drainage boards? Political involvement at a local or national level was recorded, as was involvement in sporting groups or associations. It was recorded if the entrepreneur gifted land, money, or art to the local community; similarly, if they were philanthropic in the treatment of their employees using measures, such as superannuation schemes, welfare schemes, and improved working conditions. Other questions in this section included: Did the entrepreneur retire to United Kingdom after they had fInished their commercial careers? Were they involved in the Chamber of Commerce? Was the business they were involved in a family business? Did the entrepreneur's business continue after their death? Did family members continue in the business? P"\ RTNERSH IP Early investigation o f the entrepreneurs suggested that a number began their ventures as partnerships. This might mean joining an established partner who had an existing business or perhaps several partners with complementary skills starting a new business. It seemed a useful avenue for research to assess how prevalent this was as a form of start-up, and how successful these partnerships were. Partnership was defIned as two or more entrepreneurs undertaking a business activity together. When this business activity was a family business, for example the Firth family commencing Ironclad Industries Ltd., this too was recorded as a partnership, as several family members came together at the same time to commence the business. 1 7 1 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT FA I L U RE Entrepreneurial failure is a topic that has received attention both in the academic literature and the popular press. The claim that 50 percent or more o f businesses fail within the first five years of operation has been made frequently, and it is open to debate. 1 H This study provided an opportunity to investigate the incidence of venture failure from a historical perspective. For each business venture an entrepreneur started it was recorded if the business lasted 0-5 years, or five years and over? Failure was also considered in the case analysis tl1tough questions, such as: Did the entrepreneur have a business that failed, and if so, did they recover? B oth of these terms need to be qualified. Failure in this research included a company put into voluntary liquidation, bankruptcy, or the entrepreneur closed the business to avert further losses. Failure also included the entrepreneur being ejected from the business tl1ey originally set up. TIus might occur through bankruptcy proceedings, or from a public company voting the founder o ff the board of directors. Recovery in terms of this study meant if the entrepreneur recovered financially to such an extent that they were able to develop a business again, and enjoy a measure of financial success. C A SE A A LYS I S The cases were analysed usmg descriptive statistical analyses such as central tendency and variance. Categories were created for fields, such as age or year ranges (e.g. 0-1 0, 1 1 -20). Questions, such as date of birth, age at death, wealth at death, or year o f immigration, allowed obvious numerical responses. Other responses to questions could be coded as 0/1 (for yes/no questions) , further responses remained qualitative. For example, questions as to the kind of business strategy employed, or the source of business capital, were collected as written responses and coded at a later stage. 1 8 Contemporary researchers differ in d1eir definition of failure in terns of an entrepreneur closing down a business. A useful review of the literature on failure research, by \.Vatson and Everett, clain1s dnt me rate at which entrepreneurs close down a venture because mey cannot make a go of it is in d1e region of 9 to 1 7, percent depending on d1e industry. Closing down due to bankruptcy is between 1 and 2 percent. See Watson, J . , and J.E. Everett, 'Do Small Businesses have High Failure Rates? Evidence from Ausualian Retailers', Joumal of Small Busilless Management, 34. (1996), pp.45-63. More liberal approaches have deemed it failure when an entrepreneur and meir start-up firm parted company. See for example, Churchill, B .C. , 'Survival Patterns of the Postwar Business Population', Survry of Current Busilless. (1952), pp. 12-19; and Baldwin, J. R., and P.K. Gorecki, 'Firm Entry and Exit in d1e Canadian Manufacturing Sector, 1970-1 982,' Calladian Journal of Ecol1omics. 24, (1 991), pp.300-323. This could be for any reason including me business going bankrupt, or volw1tarily closing down, or being closed down in one location to open in another, or d1e entrepreneur selling d1eir business to a partner or manager, leaving to pursue a better opportunity, or even as nonsensical as d1e entrepreneur selling the busiJ1ess at a profit to anomer company. 172 CASE .ANALYSIS APPROACH One example of this technique was to begin with the question: At what age did the entrepreneur commence their first major job? This was a straightforward numerical question. To further investigate the entrepreneur's career and understand their decision­ making additional questions were added, such as: How many jobs did they have prior to their first venture? How many occupational classes did they engage in over their career? What was their most successful venture? Was their most successful venture in the same occupational field as their first job? How many ventures did they have prior to their most successful venture? How many years of commercial experience did they have prior to their first venture? Did they form a partnership? Was their most successful venture a partnership? 'What if, type s cenarios could be constructed, for example: Of the entrepreneurs that experienced failure in their first venture, how many had less than 1 0 years commercial experience? Did the entrepreneurs who used inherited wealth a s their source of capital, develop a larger business more quickly, than entrepreneurs who did not? The benefit of using biographical information to analyse business behaviour was that it allowed the researcher to view a decision both before and after the fact. What occurred after they moved to a new city, or started a particular venture, or undertook a particular strategy? What were the outcomes on the firm of these decisions? Such an approach was not without its difficulties. Biographical information was not always complete or readily accessible. The biographer or company historian did not collate their narratives with the business historian in mind. At times they accentuated activities or occurrences, which were outside the area of interest. This could mean a further investigation of newspaper records, company history, family history, or industry history to yield answers. Sometimes, even a question as straightforward as date of birth necessitated the response, 'unknown', as birth records were not collated in the countly of origin at the time of birth, or held by the family. SUMMARY F I D I GS The following section presents summary characteristics o f the case analysis that are not presented in other chapters. In particular, the data on the year of birth, life expectancy, father son relationship, occupational categories, industrial categories, settlement location and country of origin are shown. Case analysis research ':Vas compared to the population in general or to research from comparable studies, where this was possible. 1 73 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT B I RTH .-\ND DE.-\T H INPORl'vL-\TION Long life characterised the case group. Seventy-eight percent of the entrepreneurs lived over the age of 70; 39 .8 percent of the case group lived into their eighties and nineties. Only SLX percent died before the age of 59. Fifteen percent died between the ages of 60 and 69. It is difficult to get a strictly comparable figure from the general population for the average lifespan given the variety of birth and death dates among the case group, and the limitations of statistical reporting during the period of study. However, one approximation is the average age at death. For the colony in 1 901 this was recorded as 41 .64 years. 10 The average age at death of the case group was 76.6 years. It is only conjecture to suggest why a group of entrepreneurs may have had such a marked difference in life span to the general population. One might argue that the entrepreneur was able to assume a greater degree of control over their direction in life and welfare and as a consequence lived longer. Perhaps, due to their commercial success, the entrepreneur enjoyed higher living standards, hygiene and medical attention? The case analysis could not provide a defInitive answer to this question. SETTLEMENT Where did the entrepreneurs in this study settle? This question gave an indication of where the entrepreneurs in the study lived, and the locations of theu' business activity. For while some of the entrepreneurs in the s tudy operated national businesses, entrepreneurs still tended to live in proximity to the largest plant, or head office of their organisation. The data from this question was a representation of settlement patterns as well as representing the concentration of entrepreneurial activity among the case group. This information is shown both in tabular form and on the map of New Zealand that follows. Considering the concentration of entrepreneurs overall, the three main centres of Auckland, Dunedin and Christchurch were the only locations to record percentages of entrepreneurial settlement in double figures. 1� New Zealalld Yearbook, 19 1 1 . The 1 920/21 New Zealand Yearbook gave the average ages at death of the population in 19 1 1 as 46. 1 7 years for males and 42.37 years for females. By 1920 these averages had increased slighdy to 48.74 years for males and 45.92 years for females. For a discussion of Maori life expectancy see Pool, lan, Ye Iwi l'vlaori: A New Zealand Population Past Present and Projected. Auckland: .-\uckland University Press, 1 99 1 , pp.75-88. 1 74 CASE ANAL1'SIS APPROACH Auckland had 23.3 percent of the entrepreneurs from the case analysis; Dunedin had 20.3 percent; Christchurch had 1 0. 5 percent, and Wellington, 8.3 percent. All other locations were below five percent. There was little similarity between the percentages of entrepreneurs the case analysis and the settlement patterns of the overall population (as given in the table for 1 881) . Other than the higher percentages of entrepreneurs in the larger settlement areas was to some degree in line with the general settlement pattern. T,\ H LE 7 S r':TTLEi\I ENT LOCAT ION OF CASE AN :\LYS I S ENTREPREN E URS Location >\shburton Auckland Balclutha Btills Number 2 3 1 Christchurch 14 Dunedin 27 Gisborne Hamilton 4 Hastings 3 Hawera 2 Hokitika 2 Inglewood 1 Invercargill 5 Masterton Napier 3 Nelson 6 New Plymouth 2 Otaki 1 Palmerston North 5 Picton 1 Thames 4 Wanganui 4 Wellington 1 1 Whangarei 1 Total 1 33 Percentage 1 .5 23.3 0.8 0.8 10.5 20.3 0 .8 3 .0 2.3 1 . 5 1 . 5 0.8 3 .8 0 .8 2.3 4.5 1 .5 0.8 3 .8 0 .8 3.0 3.0 8.3 0.8 100 Population As Percentage 1881 1 526 0.3 30952 6.2 820 0.2 642 0. 1 307 15 6.1 42794 8.5 1 737 0.3 1 36 1 0.3 617 0 . 1 943 0.2 2600 0.5 395 0.1 6976 1 .4 2241 0.4 5756 1 . 1 6764 1 .4 3310 0.7 248 0.0 1 366 0.3 834 0.2 4863 1 .0 4646 0.9 20563 4.1 495 0.1 173164 34.6 Note: \'vhere the size of some towns that entrepreneurs were not given in the 1881 Census I have assigned them to the closest town, borough or city that was recorded. For example, an entrepreneur in Te IvIata has been included in Thames figures. 175 ENTREPRENEURSffiP AND ECO OMIC DEVELOPMENT F IGURE 20 SETTLEME T LOCAT IO OF CASE A ALYS IS E TREPRE EUR ,J .. . �. ,� / Hokltlka �Imernton 7' jOtaki / ,,/ hri stchurch Source: Case Analysis ew Zealand Entrepreneurs The settlement pattern of the entrepreneurs for the case analysis is also presented on the above map. The red circles proportionally represent the number of entrepreneurs from the case analysis in each of these locations. Curiously, while Auckland and Christchurch had 6.2 and 6 .1 percent of the general population respectively residing in 176 CASE ANAU'SIS APPROACH these cities, Auckland had twice the number of entrepreneurs settling there from the case analysis. It is possible that this reflected to some degree the economic orientation of these two cities, and while Auckland had a more aggressive commercial focus, Christchurch had a more determined agricultural focus. However, it would require a more sophisticated sample to investigate this hypothesis in more detail. E-\. THER-SON REL-\' T IONSH I PS Business historians have investigated the relationship of the entrepreneur to their father as well as the birth order of entrepreneurs in the family. In particular, Bernard Sarachek has undertaken two studies based on biographical research. The fIrst investigated 1 87 American entrepreneurs; the second investigated 139 Jewish-American entrepreneurs. Typical of the entrepreneurs Sarachek selected were John Deere, George Eastman, Andrew Carnegie, William Colgate, and Granville Dodge. Sarachek asked a number of questions of the entrepreneur and their relationship with their father. For instance: Did the entrepreneur have a supportive father, such as Chrysler, Ford, and Mellon, or were they completely rejected by their fathers like Jay Gould and Jean Paul Getty? From his investigation, he found that almost one-third experienced the death of their father before the age of 1 6; 41 percent had what he described as supportive fathers. How supportive a father was to an entrepreneur was not investigated in the present research, nevertheless, there were still some similarities between Sarachek's research and the New Zealand case analysis. Considering the occupational background of the entrepreneur's father, the highest category across both studies was the percentage of fathers who owned their own businesses; 44 percent in the New Zealand study, and 38 percent in Sarachek's research. Having a father who was in business provided several advantages. The adverse social stigma that can be created from a non-standard career path had been overcome in the immediate family.2u The sons and daughters of business owners also benefIted from early training in business by their father. Some entrepreneurs in the case analysis spent their fJrst job working for the family firm before taking control of the family business or commencing their own business initiative. Finally, fathers who were in business might 2il Gershenkron, A, 'Social ;\ttitudes, Entrepreneurship, and Economic Development', Explorations in Entrepreneurial HiJtory 6, (1 953), pp. 1 - 1 9. 1 77 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT provide capital for their offspring to start a venture, or introduce their offspring to a network of suppliers for capital, goods and information.21 Was the first-born son likely to be entrepreneurial as opposed to other siblings?22 In Sarachek's research, 29 percent of entrepreneurs were the eldest child with the highest percentage of entrepreneurs coming from middle-order children (50%). For the New Zealand case group, it was only recorded whether or not the entrepreneur was the fIrst­ born son. For 84 of the 125 male entrepreneurs in the case group, their birth order could b e reliably established. Of these, 34 (40 percent) were flrst-born sons, and 50 (60 percent) were not. Sarachek has also investigated the skill level of the fathers of entrepreneurs . This was also done for the New Zealand case group. Both groups of entrepreneurs displayed a similar low percentage of fathers who were unskilled workers; with 6 .8 percent for the New Zealand group and six percent for Sarachek's study. Similar across both studies was the percentage of fathers who were skilled workers. This was 1 8.8 percent in the New Zealand group and 1 2 percent in Sarachek's study. The percentage of fathers who were farmers was greater in the American sample (29 percent) than the New Zealand case group (1 8.8 percent) . The percentage of fathers who were major and minor executives in either study was low. Minor executives were 0 .8 percent in the New Zealand s tudy and 2.8 percent in Sarachek. Major executives were zero percent in each study.23 21 For the New Zealand s tudy, the number of entrepreneurs who followed the same occupational field as their father was also measured. Interestingly, seventy-nine percent did not follow their father's choice of occupational field, and only twenty-one percent did. Exposure to self-employment as part of the family habitat played a more important role in a child's later career decision, than the actual occupational field of the father. 22 111ere was no comparable population data on this. 23 The absence of any major executives in any of the case groups is worth noting. For New Zealand, one argument might be that there were few major corporations for fathers to be major executives in. This was not the case. International banks and insurance companies were present in New Zealand, shipping companies, several retail chains had branches nationwide as well as large primary processing firms in the timber, dairy and woollen industries. However, one point that the present classification of the data omits is the scale of the business a father owned. In other words , we might ask of the fathers who were business owners, how many of these headed firms that were of such a large scale that the fathers might be considered major executives of their own businesses? Clearly, there were some, and the children of these business owners had exposure to business of a large scale from their early years. The exact number of siblings who fall into this category was not investigated, but it is worth further consideration to see what effect this exposure may have had on the scale of the ventures their sons and daughters then started. 1 78 C4SE ANALYSIS APPROACH In both studies it appeared least likely that an entrepreneur would come from one of two extremes; either from a family where the father was a labourer or unskilled worker, or where the father was a highly successful career executive. TAB L E 8 OCc: tJ l' :\TlON 01 ' j :NTRE I' RENEURS ' FAT! I ERS Fathers Occupations Workers Skilled Workers Farmers Professionals Owners of Businesses '\finor Executives Major Executives Other Unknown Total Case i1nalysis Fathers 9 25 25 10 52 o o 1 1 1 33 As Percentage 6.8 18.8 1 8.8 7.5 39.1 0 .8 0 .0 0.0 8.3 100 Sarachek .�s (Non- Percentage Jewish) 1 0 5 .6 22 1 2.2 52 28.9 22 1 2.2 68 37.8 5 2.8 0 0.0 1 0.6 0 0.0 1 80 1 00 Source: New Zealand Fathers, see text and Appendix; Sarachek (Non-Jewish Fathers) and Collins and Moore adapted from Sarachek, le\\l1sh l\merican Entrepreneurs: p.36 1 . In addition, for both studies, the most frequent occupational category of fathers of entrepreneurs was proprietorship. Thirty-nine percent of the New Zealand group had a father who had his own business, compared with 37 percent of Sarachek's study. In both studies, entrepreneurs commenced their first venture early in life, regardless of their background. In Sarachek's study, six out of ten of the entrepreneurs started their fust entrepreneurial venture before the age of 30; in the New Zealand study, seven out of ten had done so before the age of 30. FIRST POSITION The age an entrepreneur took their first full-time job was not always clear from biographical accounts. At times, it can be inferred from the events surrounding a first job; 1 3 of the entrepreneurs in this case group fell into this category. Overall, two entrepreneurs (1 .5 percent) started their fust job under the age of ten-both boys were 179 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT aged mne. Ninety entrepreneurs (67.7 percent) commenced full-time employment between the ages of 1 0 and 1 5.24 Thirty-four New Zealand entrepreneurs commenced their fIrst job between the ages of 1 6 and 1 8, and seven, were aged 1 9 and over before commencing their fIrst full time work.25 Of the seven, SL'{ were women. The women entrepreneurs in this case analysis often engaged in child-rearing or household responsibilities prior to starting out on a business venture. The reason women entered entrepreneurial activity was in some cases adversity, such as the death of a husband, or having an ineffectual husband as income earner. Tl\BLE 9 AGE I'I RST STARTED WORK A.ge range o to 9 10 to 1 5 16 to 1 8 19 and over Total Number 2 90 34 7 1 33 As Percentage 1 .5 67.7 25.6 5.3 1 00 Source: Case Analysis New Zealand Entrepreneurs OCCUPATION Overall, the number o f occupations held b y the 1 33 entrepreneurs totalled 628.26 The lowest number of occupations was one, and only three entrepreneurs displayed this. In each case, the entrepreneur moved directly into proprietorship. Two of these were women, and this move was triggered by adversity. The highest number of occupations by a single entrepreneur was ten. One in four entrepreneurs had four occupations and 47.4 percent of the case group had fIve or more occupations. The variety of these occupations is largely explained by entrepreneurs changing jobs prior to undertaking new 24 By comparison, in Sarachek's study of Non-Jewish entrepreneurs tllls figure was 36 percent. 25 The results of tlus study show an approximately 50 percent rugher incidence of entrepreneurs who started work in the 1 0 to 1 5 age group, than North American studies whereas the percentage of entrepreneurs in the 16 to 18 year category is similar. The number of entrepreneurs starting full-time work after aged 1 9 and over in the New Zealand study is low (5 percent) and trus is in direct contrast to Sarachek's studies of Jewish and Non-Jewish entrepreneurs wruch both recorded 29 percent. Millar's s tudy of business elite was even higher, noting 45 percent of business leaders started their first regular job aged 1 9 or over (meaning they had received further education) . 26 Measuring occupation presents some interesting challenges. For instance, is the managerial role a different occupation to that of a worker in the plant? While the industry is the same, one could argue tl1at the vital nature of the position had changed. The skills, knowledge and abilities required of the person to discharge their new role can be vitally different from their previous work. Is the move to proprietorship also a change in occupational class? For the New Zealand case analysis both management and proprietorship were recorded as different occupations. 1 80 CASE ANALYSIS APPROACH venture activity. In addition, being the proprietor of a concern was recorded as a separate occupation as distinct from being an employee, even though the industry remained the same. This categorisation tended to accentuate the number of occupations without necessarily indicating a greater range of commercial experience by the entrepreneurs. TABLE 1 0 N U MBE R 0 1 ' D I F FERENT OCCU PATIONS Number of Case Analysis As a occupations Entrepreneurs Percentage 3 2.3 2 1 3 9.8 3 22 1 6.5 4 32 24. 1 5 1 7 12.8 6 22 16 .5 7 9 6.8 8 or more 1 5 1 1 .3 Total 1 33 100 Source: Case Analysis New Zealand Entrepreneurs NUMBER OF ] OBS PRIOR TO FIRST VENTURE This study counted the number of jobs, or full-time positions, that an entrepreneur held prior to starting up their fmt venture. This did not include unpaid work. Holding a position in this study was viewed as analogous to working for the same fIrm. When a person changed roles in their immediate firm it was not counted as an additional position. It was only counted as an additional position when they moved to another fIrm or place of employment. This was different from the occupation category, where changes in roles performed inside a single fIrm could also reflect in occupational changes. The three entrepreneurs who held no jobs prior to undertaking their fIrst venture included two women, Sophia Anstice and Shirefie Coory, who commenced their fIrst business ventures out of adversity and without commercial previous experience. The other, Leo Walsh, entered an engineering business with his brother when he turned 1 8; there was no evidence of him having had a job prior to this. While having one job prior to starting a new venture, was the largest category, (3 1 percent) , the case group was closely split between those who had between one and two jobs (54.9 percent) and those who had three or more (42.9 percent) . 181 ENTREPRENEUIUHIP AND ECONOMIC DEVELOPMENT T i\l�LE 1 1 N U MBE R O F J O B S P R I O R TO F I RST V ENTU R E Number of Case Analysis As a jobs prior to first venture Entrepreneurs Percentage 0 3 2.3 42 3 1 .6 2 3 1 23.3 3 22 16 .5 4 1 6 1 2.0 5 8 6.0 6 or more 1 1 8.3 Total 1 33 1 00 Source: Case Analysis New Zealand Entrepreneurs ENTREPRENEURL'\ L ACTIY ITY BY INDUSTRY Table 12 indicates the case group's distribution of entrepreneurial activity by industry. This was not a straight-forward classification to make. Entrepreneurs may have more than one venture, in more than one industry, over their lifetime and the researcher must decide at what point to select the industry to use as a classification. Similar difficulties exist in sociological research analysing class mobility, where researchers have used the occupational category stated at the time of marriage. Others argue, however, that this may not be the most reliable indicator as it does not represent a person performing in their most mature career position. 1 82 CASE ANALYSIS APPROACH TAl-IL IC 1 2 I N D U STRY ACTI V I TY 0 1' ENTRE l' REN I , URS Industry Case .-1nalysis .-15 Percentage Mercantile 32 24.1 Manufacturing 20 1 5.0 Newspapers and 1 7 12.8 publishing Services 9 6.8 Shipping 9 6.8 Brewing including 8 6.0 Winemaking Meat and Dairy 6 4.5 processing Engineering 6 4.5 Forestry and 5 3.8 Sawmilling Transportation 4 3.0 Automobile Production and 3 2.3 Distribution Financial Services 3 2.3 Land Development 3 2.3 and Construction 1fining and oil 3 2.3 exploration Fishing 2 1 . 5 Education 0.8 Entertainment 0.8 Farm Development 1 0.8 Total 1 33 1 00 Source: Case Analysis New Zealand Entrepreneurs For this research entrepreneurs were categorised according to that commercial activity they undertook which was the largest, or most fmancially successful of their career. Naturally, there was some degree of judgement in this, but it was a more reliable measure than using an entrepreneur's fIrst business venture. Numerous entrepreneurs changed occupations after their fIrst venture and were more successful, or spent greater duration of their working careers, in different occupations to their initial one. Across the case analysis, mercantile activities (32 entrepreneurs, 24 percent) were the largest indust1:y classifIcation. This included: retail operations, stock and station agents supplying the farming community, department stores, and wholesale and distribution activities (in industries other than automobile distribution) . Such a result reinforced the need for additional research into the retail sector in nineteenth-century New Zealand. For while it was clear that the colony experienced a manufacturing boom 1 83 ENTREPRENEUR5'HIP AND ECONOMIC DEVELOPMENT in the latter part of the nineteenth century, it may be that its economic contribution was overshadowed by that of the mercantile trades. The second largest cluster was in manufacturing, (20 entrepreneurs, 1 5 percent), followed by the newspaper and publishing industry (including printing) with 1 7 entrepreneurs (1 2 . 8 percent) . This was not surprising. Partly due to the geographic isolation of many New Zealand communities in the late nineteenth and early twentieth century, a small township could support its own newspaper and commercial printing operation. This permitted some entrepreneurs a captive, if not ready, market from which to develop their enterprise and expand into other regions. Services industries included activities such as auctioneering, advertising, and tourism and nine entrepreneurs (6.8 percent) of the case group were engaged in these types of activities . Shipping activities accounted for six percent as did brewing. Meat and dairy processing and engineering each accounted for 4.5 percent. The smallest categories were education, entertainment, and farming. For instance, one entrepreneur pioneered a regional art school, and another's primary activity was the buying, running and selling of multiple farms . LIMITA nONS Some o f the limitations o f this study have already been mentioned. I t focused on a group o f entrepreneurs and explored this group using available biographical materials rather than considerable primary sources. Such an effort would clearly yield further insights, though was beyond the bounds of the present study. Nor could such an approach, if adopted, rely on locating sufficient primary records for each entrepreneur considered. Furthermore, while the study uses statistical techniques, the case analysis was non-random and was not designed to be representative of the population. However, in reality, obtaining a random case group of New Zealand entrepreneurs who were perfectly representative of industry groups and periods, and for whom adequate information is in existence to conduct research on their business activities, would be a difficult task, if not impossible. Given these kinds of constraints, the present research covers many of the entrepreneurs who might be reasonably studied using a case analysis technique at this period in New Zealand's history. In addition, the study includes entrepreneurs from many of the main population areas of New Zealand in the period, and represents a wide range of commercial activities . 1 84 CASEANAUTIS APPROACH NEW ME:\SURES The appearance of a large, expensive, collective book on the history of household and f1mi1y needs neither apology nor defence. This is a new, or a newly defined, area of study and its importance to human behaviour in the present as well as the past is manifest. The burgeoning subject stands in evident need of a body of comparative data and of an assemblage of techniques for their analysis.27 In the book, HOUJeho/d and ramify in Pas t Time, Peter Laslett and the Cambridge Group for the History of Population and Social Structure, presented new measures by which households and family could be examined and discussed. Mean Household Size (MHS) was one of these, and it encouraged other researchers to be equally creative producing new classifications and statistical measures for investigating families.28 The study of entrepreneurship could also benefit from such an approach, and from the present study, three measures are proposed which others may find useful. The first of these is Lifetime Venture Activity (LV A), which measures the number of ventures an entrepreneur undertakes over their career. Analysing the case group of entrepreneurs it became clear that while we may identify an entrepreneur with a single business venture for which they are well known, over their total career they often pursued multiple business ventures and start-ups. Indeed, to have only one venture in a lifetime was the minority not the majority experience. Eighty-one per cent of the case group was involved in more than one venture over their lifetime. This ranged from two or three ventures to five or more. Some ventures lasted only a few years; others lasted 40 years or more. Some ventures failed, but the key finding was that entrepreneurs habitually undertook multiple ventures over their lifetime, not just one. A distinction could be made between the ventures that an entrepreneur started that were entirely new, and those ventures that an entrepreneur was involved in which were started by someone else. This could happen through acquisition, purchasing a business outright, or entering into a partnership with someone who had already begun a venture. Lifetime Venture Involvement (LVI) measured the latter category, that is, the total number of ventures that an entrepreneur was involved in regardless of whether or not they started the venture. A second measure, Lifetime Ventures Founded (LVF) , 27 Laslett, Peter, HotlJebold and FamilY in Past Time, London: Cambridge University Press, 1972, p .L\:. 28 Wachter, Kenneth, Eugene Hammel, and Peter Laslett, Statistical Studies of Historical Social Structure, London: Academic Press, 1 978. 1 85 ENTREPRENEURSHIP AND EC7 £555 £515 £.H8 10 2(. U,825 £-183 13 37 38 lm 25 I ()() 23 (,] 1 4 68 5 1 5 £!.,16H £17,�56 £10,568 [6,saO £3,560 £,)fX) £�7-1 £.59 £m [286 £25� £180 £310 £433 £�(.O £,220 £389 £226 [306 £I�'J £3IX) £53 £157 £21 1 £10 £105 £1lX) £88 £1,5 £15 Source: Compiled from Cellsus statistics: 1 88 1 . Note: for some industrial classes no capital figures were given and 50 are not shown above. One of the characteristics in the above table is the large number of industrial classes that required limited amounts of capital investment, perhaps only a few hundred pounds, and the relatively small group of industries (gas works and woollen mills) that required £10,000 or more, This trend continued throughout the period of this study. On average, between 1880 and 1 910, approximately 59 percent of all industrial This enterprises were carried out on a total capital investment of £1999 or less . proportion went as high as 74 percent of all industrial enterprises at the time of the 1 896 Census , and as low as 47 percent at the 1 9 1 1 CenJttJ, This trend is shown graphically in the figure below, 237 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT F I G U RE 2 5 PERCENTA G E OF ESTABL I SHME TS B Y C AP ITAL I NVESTME T : 1 8 8 1 - 1 9 1 1 1 9 1 1 1 906 1 901 1 896 1 891 1 886 1 881 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I 1 1 I I I I 1 1 j I I I I I I I I I I I 1 j I I I -- -- -- • • I . 0-999 . 1 ,000-1 ,999 o 2,000-4,999 • 5,000-9,999 . 10,000 or more 0% 1 0% 20% 30% 40% 50% 60% 70% 80% 90% 100% Source: Compiled from Censtls statistics: 1 881-1 9 1 1 The average capital investment per industrial enterprise was a measure of existing capital commitments in an industry; it could also be used as a guide to the capital entry costs in an industry. From this figure observations might be made about the ease of entry to some types of activities and the barriers to entry in others. However, average capital investment per industrial enterprise has some limitations. It is a measure of central tendency and it is not an indication of capital entry costs in all cases. Nor does it account for working capital. In some industries, working capital requirements were substantial where large amounts of work in progress was on hand, such as iron and brass foundries, or equally where the industry was highly labour intensive, such as the clothing industry, requiring working capital to pay wage bills. Furthermore, entrepreneurs might be able to reduce their initial capital requirements using capital economising techniques, such as purchasing second-hand plant or renting factory premises. From the Factory and Industry Statistics it was possible to investigate the latter of these two techniques, where entrepreneurs did not require purpose-built premises. Industries that were of this type included boot and shoe manufacture, sawmill operation, printing works, agricultural implement manufacture, biscuit manufacture, and other activities. Overall, a sizeable number of industrial activities could be undertaken in basic commercial buildings that were not purpose-built. Merchants and retailers were also of this sort. Mercantile activities provided a uniquely low-cost introduction into new venture activity, where the entrepreneur's ability to generate additional capital was tied to their ability as a trader. Those who were able to 238 CAPITAL turn their stock over more frequently might generate more profit on the same amount of capita1.41 OPPORTUNIT IES ON LIMITED CAP ITAL Analysis was undertaken on the factory and industrial statistics to identify the capital entry requirements in those industrial activities that did not require purpose-built prerruses. The full results of this analysis are listed as part of the tables included in Appendix C. An example of this is shown in the following table. This ranks the industrial classes from the 1 88 1 Census by average investment per establishment in plant and machinery. As a trend, it is apparent that in 1 881 the plant and machinery costs of industrial establishments were typically less than half the total capital cost. This explains in part why entrepreneurs could enter industrial activities that appeared outside their initial capital limitations. For example, James Speight, William Dawson, and Charles Greenslade would not have been able to fund the cost of constructing a brewery at an average total investment of £3206; however, tl1ey could finance the plant and machinery cost which was on average only £850 for the industry. 41 It is interesting to note in this regard that 33 percent of the case entrepreneurs chose some sort of mercantile or retail pursuit as their first venture. In doing so, they not only selected a potentially low cost option in terms of capital requirements, but also placed d1emselves in the strong position of being able to generate additional capital quickly if they were particularly adept at trade. Not all stayed in mercantile pursuits. The percentage commencing d1eir first venture as merchants or retailers was almost 50 percent higher than those who by the end of their careers could be classified as such. For example, storeowner Hugh Cassidy later branched out into other fields of endeavour that would prove more successful and more profitable. In Cassidy's case it was transportation as he commenced his third venture, Cassidy Clarke and Company in 1 873, eight years after his first business enterprise. 239 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT TAI:I IY 24 CAP I 'i';\ L I NVES ·CM I ·: NT IN PLANT AND M AC I ! I N I ': R Y : 1 8 8 1 Manufactories and Works Ga�works Woollen Mills Patent Slips Collieries Iron and Brass Foundries Sawmills and sash doors Printing Soap and Candle Grain Mills Bioi ling Down and Meat Preser\'ing Breweries Machinists and Millwrights Agricultural I mplemcnt manufacturers Coffee Spice and Chicory Biscuit Factories Rope and twine Block and Pump manufacturers Boot Manufacturers Fellmongering Tanning and Woolscouring Aerated Water and Cordial Clothing Factories Bone Cutting Mills Sauce and Pickle Brick and Tile Coach-building and Painting Works Stone Quarries Spouting and Ridging Chair and washboard Hat and Cap Factories Chaff cutting works l'urniturc making manu (acturcr8 Ship and boat building works Limeworks Cleaning and Dyeing Works Fish Curing Bacon Curing Malthouses Colonial Wine Sail Factories 1 7 4 4 51 35 223 106 1 5 13 1 40 <)<) R 23 9 1 8 1 8 3 31 1 1 9 7<) 8 1 7 3 1 27 49 10 ') 3 8 38 45 25 23 10 1 4 20 34 5 13 1 88 £177,749 06,000 £6,700 £100,071 £83,581 £397,084 417 31 992 953 4238 1779 £99,449 108 £15,550 450 £207,085 468 £62,525 526 £233,218 90 £6,690 315 £27,582 63 £16,700 14il £18,380 124 £9,735 (, £1,800 1 299 £33,lOD 859 228 756 25 15 685 387 136 20 8 58 100 466 100 63 26 68 64 67 15 37 £88,156 £,'36,201 £6,200 £6,500 £800 £77,030 £,'35,570 £16,533 £2,500 £1 ,075 £3,892 £13,476 £71 ,415 £8,OG8 £4,560 £4,170 £2,655 £10,030 £'47,850 £825 [6,038 014,367 £62,500 £30,220 £121 ,07<) 01,686 D76,544 £129,717 £17,690 £150,093 04,320 £84,IHO £6,703 £16,272 £5,650 £9,%5 £8,285 £1,300 £13,267 £47,926 £30,700 £2,480 £5,195 £900 £28,735 £10,760 £2,160 £1 ,895 £470 £1 , 1 90 £3,980 £,'4,5 12 £2,500 £2,020 £655 £905 £1 ,060 £666 £75 [130 £492, 1 16 £98,500 £,36,920 £221,150 £155,267 £773,628 £229,166 03,240 £357,178 £96,845 £,317,398 £13,393 £43,854 £22,350 £28,345 £18,020 D,100 £46,367 £136,082 £66,901 £8,680 £1 1 ,695 £1 ,700 £105,765 £46,330 £18,(m £4,395 £1,545 £5,082 £17,456 £,75,927 £10,56H £6,580 £4,825 £3,560 £11,090 £48,516 £900 £6, 168 £28,948 £24,625 £9,230 £4,336 £4,436 £3,469 £2,162 £2,216 £2,727 £2,421 0,206 £1 ,674 £1 ,907 £2,483 £1 ,575 £1 ,001 £1,033 £1 ,496 £1, 144 £847 £1 ,085 £688 £567 £833 £946 £1,869 £488 £515 £635 £459 £1 ,687 £423 £286 £483 £254 £555 £1 ,427 £IilO [474 £18,492 £15,625 0,555 £2,374 £2,048 £1,689 £1,224 £1 , 179 £1,146 £858 £850 £838 £707 £628 £554 £460 £433 £428 £403 £389 £310 £306 £300 £226 £220 £216 £'211 £157 £149 £105 £100 £100 £88 £6(, £65 £53 £20 £15 [10 Source: Census 1881 Furthermore, some industrial activities required much smaller amounts of capital to purchase the requisite plant and machinery, For example, the average plant and machinery cost for a hat and cap factory was £149 , This was 23 percent of the total capital investment per establishment in that industry. Similar was furniture manufacture, of which there were 45 factories in 1 881 with an average cost per establishment in plant and machinery of £100. Neither of these industries required purpose-built plants. For the entrepreneur of limited personal capital, these kinds of industries offered an opportunity for market entry. 240 CAPITAL This analysis was then extended to all the census periods covered by this thesis. The purpose of this was to identify fIrstly the market entry opportunities for single entrepreneurs of limited personal capital, and secondly, the market entry opportunities for groups of entrepreneurs funded by personal capital. For the purposes of analysis, two levels of personal capital funding were selected. For the individual entrepreneur, £250 of accumulated capital was set as an arbitrary figure, and for a group of entrepreneurs acting together, £750 was set as an arbitrary figure.42 As an indication of the kinds of opportunities open to entrepreneurs who only had very limited funds, the following table gives a ranking of industrial activities at ten-year intervals between 1 88 1 and 1 9 1 1 . The industries shown are only those where the average cost o f plant and machinery per business establishment was £250 or less . In 1 88 1 , 1 6 industrial classes were possible entry points for entrepreneurs with £250 or less to invest in an industrial enterprise. By 1 890, this had broadened to 29 different classes of industry, representing 32 percent of all industrial fIrms. The 1 9 1 1 figures indicate a more restricted class of activities open to entrepreneurs. Part of this was due to a change in the statistical recording of industrial categories . For example, in 1 900 waterproof factories were recorded as a distinct category, but by 1 9 1 1 they were included with clothing factories as an industrial class. Hence, it is inaccurate to suggest that between 1 890 and 1 900 there was a burst of enthusiasm for industrial enterprise that had lessened by 1 9 1 0. For even with the alterations to collection categories, the number of works open to an entrepreneur who might be self-funding their own venture was considerable. For instance, the 1 7 classes of industry in 1911 requiring a capital investment in plant and machinery of £250 or less represented 1 342 establishments, 28 percent of the entire factory and industrial establishments recorded in the Census. 42 There was some evidence to suggest that they were representative of entrepreneurs in the study. It could be argued, for example, that an entrepreneur might save £2S0 over a S-1O year period given that an average wage in the latter part of the nineteenth century was approximately £100 per year. For the period of this thesis Statistics of New Zealand gave the daily wage rates by occupation for the difference provinces of New Zealand. A wage of between 8 to 12 shillings per day was commonplace for numerous trades and on average tilis constituted a yearly income of approximately £100. Historian Donald Gordon suggested the same figure as the average annual income in the period in his history of James Speight and Co. See for example Gardon, Donald, Speigbt's, p.SS. 241 ENTREPRENEURSHIP.AND ECONOMIC DEVELOPMENT AV l ': R :\ CE CAP I 'L\ L ENTRY COSTS l Q -YEAR INTERVALS Capital Capital Capital Capital 1 88 1 Entry 1 89 1 Entr)' 1 901 Entry 19 1 1 Entry Cost Cost Cost Cost Bnck and Ttle 12() Cyd.: 2-\.5 Baking POWOCf manufacturer 238 Cycle 2 16 C();tch-buiIJlog and Pamtmg ::0 Clothing factories 239 Brush, broom 235 V cm:tian hhnu 2 1 5 \'\forks Stone Quarries 2 1li Cooperages J,()( I l'lock mills 224 r�lcctn)-rlating \\'()rks 2( H ) Spouting and Ridging 21 1 Flock mills 1 04 Mattn.:ss factory 2 19 Lead headed nail 177 Chair and washboard 157 Tinware factories 10( 1 Colonial wine 2 1 1 Sail and oilskin 1 47 I !at and Cap ractoflL'� 1 49 Stock-weaving 10( 1 Bone Mills 2118 Tobacco 13-1 Chaff cutting works 1 ( 15 SUh'llf boiling and 185 \Vatcrproof factories 1 95 Monumental masonry 1 1 2 confectionary Furniture making 1 1 1 1 1 Bone Cutting Mills IH5 Tinware factories 1 65 Sausage skin factorit:s 1 1 14 manufacturt:rs ShIp anu boat budding works 1 1 1 1 1 f Il'matitc Paint factoril's lH I I Furniture making 1 6 1 Saddler), 95 manufacturers Limcworks BH Saddlery In Coach building 1 5 1 Musictl instrument factories �4 Cleaning and Dyclng \\'orks ()() Coach building 175 Cycle 1 34 Portmanteau manufacturers 82 Fish Curing 65 Chaff cutting works 1 58 Returns not i.ncl. in othcr 125 M'.lttrcss factory 72 classes Bacon Curing 53 Fish curing 1 26 [ Sail Factories Chaff cutting works Slup and boat budding works I�lmcworks Fish Curing Colonial \\'ine c � � ... � o a t.... :..:J �, .2 0. � 1J � 756 1 8 124 �9 387 79 22H 127 M6 17 25 8 5H 1 5 20 (..I 3 H 20 to 26 13 37 38 J(X) 2S JoO 23 63 14 (,8 5 15 1J .� ... � £8,MlO £3, l IX) £18,OZO £�6,330 £66.901 £105,765 £1 1,695 £5,082 £1,71�) £ 1 1 ,(1)0 £1,5�5 £4,395 £�,H25 £6,1(,8 £17,�S6 £lO,568 £(,,5HO £3,5(,0 £9(X) � Q. i ... .� .!.I. £1,OH5 £1,033 £1,IXll £946 £�7 £833 £6H8 £635 £567 £555 £515 £�8H £�83 £�7� U59 £�23 £21J(, £25� £180 I N D U S T R l ;\ L :\C TI V I TI E S R l\ N K E D BY Ci\ I' I T A L P E R P L A N T : 1 8 8 6 :\Ianufactoncs and \\'orks \\'OOIlCI1 �hlls Ga�works Boiling dO,,",'l, meat frcezmg and prcscrvlng work:; Gr,n-ing-docks patcnt slip Paper nulls Chtmical \X'orks Soap and candle Iron and Brass foundncs Sa\\mills Clothmg Factonc,:, Brcwc!1cs �fachillists and �hllwrights o j ] 1l cS 20 " �. o Q. E 1l cS 1J(,7 3H �4 X38 15 37 S6 1 8 20� 58 1750 26H so·n 1 1 12()i) 9H 475 90 1l .� ... � £2()3,179 £65(),.tOS � Q. i ... "6.. .Q.. £33,880 £.12,H20 £4�2,')(,2 £1O,()(,7 £33,395 £12,Jl(K) £3O,�m D5,92'd £23'),9.18 £%·1,(1)5 £37,530 £323,756 £15,H20 £8,349 £(,,4IX) £5,(X,8 [4,218 £�, LJ7 £3,597 £3,412 £3,30� £3,16� ;\gricultural lrnplcmcnt manufactun:rs 17 336 £50,205 £2.953 Grain .\ftIls Printing Establtshmcnts Rope and 'I\-vine Coffee and Spice Gold quartz mining and crushtng BISCUit factorics Barbed \\-;rc Colllcncs Cap and I bt I lydrauhc gold mltltng and gold dredging .\ia1thouscs Till\vare factories Boot and shoe I;cllmongenng, tamung and wool�couritl� I .une\\'orks Sugar boilmg and confcctionary Chee�e and butter BOller makers 121 �4H 13:; 2107 21 2-12 14 149 101 1 1 56 22 185 43 79 1�4H H 1 1 8 1 2-1. 617 D29,30� £331,723 £�9,821 £32,439 £21 1 ,021 [43,Jl()5 £3,850 £1�8,773 £14,790 £224,787 35 H5 £W,3(X) .1 40 £5,070 �2 165� 00,935 97 2� 1 1 36 1(1)3 £138,750 Jl() £33,290 1 10 £14,(,10 I ll) £�7,513 13 Q,,5Jl() £2,722 £2,457 £2,372 £2,317 £2,089 £1,991 £1,925 £1,883 £1,�9 £1,8B £1,723 £1,(,90 £1,689 £1,430 £1,387 £1,328 £1,320 £1290 ..., c· o " v 0 E .­t> i � E z -g if • t � �. ;: � £22,143 £22,-1 16 £2,774 0,130 £4,�(K) £1,M7 £2,61� [2,OS3 £1,6'10 £521 £�5 £1,15� l'\.lanufactortcs and '\'orks Furmture making manufachlrer� Brick and Ttfe Baking powdt.:r manufacturer Coachbut!.ding \"enettan blind Spoutmg and Ridg-ing i\fusical instrument factones l lcmahte Pamt Fnut preserving and Jam Stone (building) quarnes Basket and Perambulator Aerated \\tater £I,(X)5 Chaff cutting works £1,HX) £1,219 £1 ,333 £759 [2,089 £592 £1 ,025 £1,883 £128 £1,813 £% £523 £376 £� 1 1 £3�7 £596 £493 1.3(K) Stock-wea\'itlR Bone Cutting i\lills ehalt and \\.-'ashboard Bacon CUnt1g Brush manufacturer Glue manufachlrer Cleaning and Dyeing '\'orks Flax mills Cycle works Cooperages Satl and oihikin factories Flock mills Fish Curing Sauce and Pickle I lee! and toe plate Ship and boat building works Colonial ",;'ne � E � � � ... .2 �. .2 � ] 1l � ] 75 707 £93,032 126 598 £15 1 ,4 1 1 89 (l(r\ 7 39 10 70 19 20 216 14 196 10 39 1 1 2 273 £2,�()() £11)(,,238 0.950 £10,670 £3,130 £5,175 £20,520 £13,566 £9,225 £93,478 1l c. o 0. ] 'B.. � £1 ,2�0 £1 ,202 £1 ,2IX) £1,I'H £1,13(, £1 ,()(,7 £1 ,0-13 £1,035 £1,026 £969 £92.1 £H35 83 265 £(..1,'169 083 16f! 19 11 37 137 7 42 1 1 1 0 33 30 149 8 1 -1. ()O £3,9(X) £5,2()9 £2,995 £26,7(1) U,775 £1,850 £6,150 £18,016 £1,037 D,255 32 1 1 8 £15,370 4 12 £1,610 21 122 £8,146 53 10 35 £3,445 17 £1,050 172 £17,(1)4 15 £3,198 080 053 049 022 £682 £617 £615 £601 £519 £518 £480 £�03 £388 £3H3 £350 £323 £320 ... c· 5 � � � .S � 1 P t; � -=:. � "il £310 U33 U(,() £220 £3H9 £226 £30(, £149 £3IX) £53 £157 £211 £66 £10 £105 £ 1W £8H £65 £15 .... c · o 0 E .E - -'= � g .= "'0 � d � ] -2' £123 £398 05 £269 £214 £465 £1 10 £398 £394 £558 £29 £329 £170 £190 £249 £�05 £(,3 £1H £3{X) £67 £231 £183 £215 £21 £250 £89 07 £150 £10·1 £10 319 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT I N D U STR I AL ACTI V IT I E S RAN KED BY CAPITAL PER PLANT : 1 89 1 .'.fanufactnrit.'s and \'Corks Graving docks patent slip \'\'oollcn ?\hlls Gas works i\ieat prcsclYlIlg. frccz11lg alld b{)iiitlg do\\'l Soap and candle I roll and Brass Foundries Clothing factoncs Grain mills Chemical \X'nrks SpOlltlllg and RldJ..,>1tlg Printtng Establishments Breweries \\'oOdCI1\\"afC and wood tuming Paint vamish :\ntimollY mining and .\fanb1'J.IlCSC \'Corks Btscuit miHs I Iydraulic gold tnming and gold dredging Sawmills 8 27 M {3D,769 1 175 £259,955 249 l,,730,490 £38,MI £32,494 £27,1155 c C' " � � � - � .5 l:: *' ] � � -'= =$ e, § i\1anufactories and \X'orks £"22,.j87 Bnck and Tile £2<.1,786 Tinware faCH)r1es £22,932 Cycle 43 1568 U76,151 {I 1,1173 U,171 FUOliture making manufacturers 19 2W 79 1787 19 1290 129 .t99 8 55 12 1I�) 142 2569 102 476 51 8 91 l,,74,H3 £268.887 {S9,735 £391,828 £23,7('(, £29,670 £341,683 £236,825 £I 1,HO £6.813 £6.750 £3,918 {3,.jIl.j £3,IH {3.1137 £2.971 £2,473 £2,.106 £2)22 £2,288 £2,271 £2,2511 {Z,501 £1 ,829 £219 {I ,288 £1,103 £"573 £1,22.j £"554 £588 £1,4511 {U67 Sugar boiling and confectionary Coachbuilding FIa .. , mills Cleaning and Dyeing \'('orks Stolle(buildl11g) yuarries Venenan blind Paper bag and cardboard box Stock-weaving Fruit preserving and jam Brush, broom Aerated water 22 .13 1 £48.960 £2,225 {909 Bone Cutting �hJl, H 495 £1 54.270 {Z,085 {Z,085 Chaff cutting works 243 3266 £500,272 £2,059 {I,015 Baking powder manufacturer :\hmcultural Implemcnt manufactUf('fs 36 528 L73A78 £2,().tl L751 Sail and oilskin Coffee and Spice Gold quartz mmmg and crushmg Buot and shoe Collieries Cap and l lat I -ime and cement works �Ialthouses Rope and T\\,nc Fcllmong-L'nng Tanllmg and \'('oolscouring Saddlery ChccsL' and butter 17 81 135 1971 47 19.j3 95 HjSS 1 6 1 1 2 21 93 27 87 2.j 222 £30,850 £241.715 £82.137 {155.671 {26,1X)5 £33580 {42.H2 £36.086 104 11% £153,592 184 {I 1 ,699 H 269 {100,426 £1.815 £1 .790 {I,7.j8 £"1.639 {I,625 {1 ,599 {1 ,572 £1 504 £1,477 {U62 £1.157 UI.j £1.790 D9G £1 ,639 {105 £580 {I 23 031 £365 £"178 [370 Cooperages Fish curing PortmantL'au manufacturers Bacon curing Sauce and Pickle f lL'hlatitc Panl[ factories Colonial wine �lock mills Baskct -and l)cratnbuhtor Slur and boat bm1dmg works Sausage i'kin and \,o!tn string 106 .j9.j 1 2 9 3 7 31 9.j 585 12 53 108 678 177 3204 12 .j8 35 29 35 6 51 15 1 1 7 I I 81 112 261 {1 19,780 £13,155 £7,289 {96,543 £lO,nl £96,225 £146,792 £9,581 £6,7H {6,727 £5,594 U,I)'!O £111,().J2 £7,233 l,,73,147 £U30 £1 ,08 UO %2 £380,-'44 2-l 2,2 [66,HCr) 18 78 £D,572 145 2460 £372,(1)J 15 184 £38,4.>6 .H H5 D5,O.J8 26 305 [5(),95S '>34 (,B 12 D03,620 30 £10,266 £10/193 £6,133 £4,7(,2 £4,724 £4,5')8 £4,512 £4,250 £4,191 £3,981 £3,253 £3,250 £3,102 £2,976 £2,1)26 £2,784 £2,6-1.> [2,5M £2.,5(12 £2,27-1 £2,191 £2, 107 £2,05.1 Fdlmongcring Tanning and \'\'oolscouring 1 }1) 19()" [235,952 £1,91-)3 Grass seed drcsstng 25 flU £�8, 195 HUlhng dO\vn \vorks U (11 £26,831-) :\gricultural lmpkmcnt manufactun:rs 33 5&'J £61,339 Baktng powder manufacturer Paper bag and cardboard box Fruit pfeserying and lam Saucc and PlCklc Bacon curing Cheese and butter Spouting and Ridh·ing I lematite Paint factofles I lat and cap \'amish Boot and shoe Sail and oilskin \\'aterproof factunes Picture Frame maker� Colon tal WtnC I lerbal remedy factories Tailoring Establtslunents Fumlture making manufacturers Hosiery Brush, broom Yinegar \vorks ,\lattress factory Portmanteau manufacturers Shirt-making Brick and Ttle \'foodeI1\Vlre and wood tuming Timvarc factones ( I()pcrage� 1 1 29 £I 8,2(X) 7 81 £11 ,499 Ll 167 23 12H 31) It)() 247 l lBB 35 261 -I 12 15 1 17 19 12(1 2696 .10 231 1 14 22 14 59 175 1(J21 144 1310 17 12 12 282 128 55 22 £20,1)35 £36,715 £62,11)2 £388,750 £52,687 £5,943 £19,217 £5,765 £t7(J,992 £40,S93 0,845 £1 1,750 £18,183 £10,305 £211,01(, £170,338 £19,997 £13,829 £4,480 £13,1(,5 £6,460 25 108 28 W 23 531 £26,528 838 £ 1 14,567 £28,227 £56,914 [21,7H7 156 337 138 £"1 ,928 £1,')17 £1,859 £1l,55 £1/,43 £I,(,JO £1,SIJ() £1,595 £1,57� £1,505 [1,486 £1,478 £1,441 £1,405 £1,563 £1 ,308 £1,3IK, £1,2�9 £1,288 £1,211(, £1,183 £1,176 £1,152 £1,120 £1,(1)7 £1 ,077 £I,()(,I £I,(K,I £1,IX)H £949 £947 £2:),279 £27,238 £17,270 £1 1,595 [H,708 £6,133 £3,646 £2,390 £2,312 £1 ,987 £544 £1 ,743 £1,039 £2,321 £1/..!7 D08 £1,5�1 [1 ,598 £1,21(, £+15 £2,S6() £1 ,622 £3m £691 £1 ,222 D28 [r,79 £5�3 D48 £613 [238 [514 £457 £314 £432 £820 £284 [(.98 [25.1 £541 £392 {J� £195 £50 £21 1 £108 £40 £1(>1 [511(, £2,15 £405 £219 [1 12 £251 £331 £328 £165 £3(.1 Manufactories and "'orks Corset and belt Coachbuildlllg Cycle Cleaning and Dyetng \'"orb Basket and Perambulator Chaff cutting works Aerated water Saddlery Returns not incl" Above Honc i\lills Dressmaking and millinery I<'a.x mills \' enetian blind Flsh curing Stollc(building) quarries Flock nulls Slur and boat butldmg works Sausage sktn factories Rabbit prescrvlIlg works CondcJl!'>cd rrulk Sugar refining Tobacco lee factOries Glue fac(One� Olcomargannc works Harrow and ladder factory Papcrmtlls Tobacco ripe Glass factory Glass bevelling w(lrh 1�lcctro-plating works Pumice works I leel and toe plate I..cad headed nat.! Iron pIpe and fluffiUlg works �tusical instrument (acrones Cork cuttmg Lapidaries Billtard table Rubber stamp maki.ng :\mmunition facrotlcs Cultcry faewr), Bellows factory \\'hipthong Block and pump \X' 001 rug and mat making Perfumery Ink Starch works Sheep dip factones Match factotles Biaclong factones Coconut oil mill Textile-bag and sack �fonumental masonry Fruit cannin� works Cigarette manufactories I'at refining works 25 £5,659 160 1 1�5 £150,811 71 395 £65,103 1 1 5 1 21 1 1 8 55 2(,() 125 452 1 15 652 74 296 8 17 290 2BH8 101 1 698 12 51 28 Ll7 8 58 5 10 ]2 2 1 1 10 ')8 7 62 27 1 3 .>.> 256 20 98 1 1 28 7 1 1 3 105 17 4 5 32 7 183 10 81 5 18 14 [9,6.>5 £18,180 £46,786 £105,178 £96,559 £59,659 £6,23i.) £19-',99H £64,+16 D,469 £17,:m £4,6(,0 £2,(150 £15,1')8 £3,949 £3(,2 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £ll £0 £I) £0 £0 £0 £0 £0 £0 £17,391 £0 £0 £0 C!43 £943 £921 £876 £866 £H51 £841 £840 [BlI(, D79 £669 £638 £622 £(>1(, £583 £530 £475 £395 £52 £0 £0 £0 £0 £0 £0 £0 £0 [0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £56 £151 £134 £121 £122 £43(, £298 £45 £125 £208 [39 £283 £66 £12,1 £583 £224 £85 £83 £17 £D £D £D £0 £0 £D £0 £0 [0 £D £0 £0 £0 £0 £D £0 £0 £0 £0 £11 £0 £0 £0 £0 £0 £0 £0 £D £11 £11 £11 £0 £0 £0 £0 £46 £0 £0 [0 322 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT I N D U S T R I A L ACTI V I TI ES R A N K E D B Y C A P I TAL P E R P L A N T : 1 906 Manufactories and \'('orh Granng docks patent slip 2� £�7,�20 MaJ1U£actont'S and \Vorks D ,878 Fdlmongcring T82 £1.M5 £�5 25 24 3 1 1 2� 3 1 1 17 219 51 22.f 5� 473 2·10 4117(, 22 399 39 3(1-1 1 1 1 5� 19 70 172 1 518 1 83 1-165 113 586 � 1-1 1 3 -16 22 1 1 6 308 2997 1-1 3� D;2(,3 £1,816 £'261 £�2.317 £1,763 £42.3 17 £1.763 £�,982 £1 ,666 D8,%6 £1,519 £80,270 £1 ,�86 £355,�0 £1 ,�83 £31.l,SO £l ,�O £55,8 15 £U31 £15,657 £tA23 £26,825 £1 ,� 12 £239.375 £1 .392 £251,717 £1 ,37(, £161>A70 £1.353 £5,3�O £1.335 £1(,,155 £1 .2�3 £2(,.736 £1,215 £372.026 £1 ,208 £1(,.775 £1,198 £-178 £478 £2M £-137 £%7 U98 £338 £5-17 U3r> U39 £239 £205 U6(, £50 £19� £-121 £35 £15 29 163 £32,692 £1 ,127 £HX) 22 51 (..I I) 35 106 5� 23 1 1 8 21 106 97 -l52 � 7 -17 197 338 3039 7 15 2() 1.f8 12 151 30 237 £2-1,792 £8,930 £9A7(, £to8,GN £22567 £20,'172 £B3,6M £3,�02 £39.035 £2(,9,(XXI £�.785 £17,190 £6.807 £1�,722 £1,127 £1,1 1 6 £1 ,053 £1 .025 £981 £970 £863 £851 £831 £796 £(,M £61,1 £%7 U91 DG8 £IOS £103 £67 £98 £365 £ 124 £241) £6(1-1 £20 D�O D9 £61 £177 323 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT I ND USTR I A L ACTIV I TI ES RANKED BY C AP ITAL PER PLANT: 1 9 1 1 Manufactories and Works Electric tramways Meat preserving, freezing and boiling down Electric l .. ighting works Woollen Mills Ga..-;works Lime and cement works Rope and Twine Biscuit factories Gold quartz mining and crush ing Collieries Breweries I Iosiery 1663 £1 ,387,635 £277,527 41 3978 £1,741,170 £42,468 1 4 1 70 1 1 1410 48 757 17 456 8 190 381 �) 4014 £4D4,681 £289,089 D ,079,387 £255,614 £98,342 £89,974 £837,1 56 [28,906 [26,281 £22,487 [1 5,036 D2,293 £9,997 £9,302 1 1 8 3331 £1 ,015,921 £8,610 60 741 14 527 [499,357 [92,1 59 [8,323 [6,583 � c' c " " c E ,-� .c � u " � � E ,- -c " � � � � � - :5 p.. § Manufactories and Works [241,819 Cycle £1 8,269 Electrical engineering works [1 6,762 [16,4J.)5 [15,696 £9,804 [8,421 £5,133 [9,302 [0 Brush, broom Stone(building) quarries Coach building Returns not incl. Above Venetian blind Cooperages Aerated ... vater Furniture making manufacturers [2,665 Tinware factories [4,(Xll Sauce and Pickle 7 1 3 1 5 £144,877 £2,041 £21 6 1 5 128 [28,576 [1 ,905 £207 J () 133 £18,71 4 £1 ,871 £563 18 221 £33,21 7 £1 ,845 [1,845 1 80 1439 £320,974 £1 ,783 [282 35 207 [60,458 [1 ,727 £559 5 34 [8,589 [1,718 [21 5 20 1 7 1 [33,881 £1 ,694 043 124 570 [2(X),965 [1 ,621 £535 207 1689 £327,682 D ,583 [267 65 414 [98,589 £ 1 ,517 £322 23 143 £34,751 [1,5 1 1 [286 Agricultural Implement manufacturers 19 646 £1 1 8,631 £6,244 £2,406 Baking powder manufacturer 1 1 68 £16,223 £1 ,475 £338 Grain mills Printing Establishments Rangl'-making works Paper bag and cardboard box Soap and candle Engineering works Sugar boiling and confectionary Flax mills Malthouses Bone Mills 66 424 241 4222 1 1 271 13 240 20 252 120 2442 33 729 81 1244 28 107 III 92 [4J.)7,721J D ,302,497 [58,542 [60,91 5 [92,61J9 [514,8W [141,074 D42,638 [I 1 4,1 71J [4J.),1 75 Value industries les than 4 of onc sort 1 1 3 l(X)8 [422,988 I ron and Brass Foundries Brick and Tile Sa\vmjJ]s, sash and door factofH:s Billiard table Fcllmongcnng Tanning and Woolscouring Boiling down works Textile-bag and sack Bag and sack works Gold dredging Grass sccd dressing Boot and shoe Cheese and butter Clothing factories Chemical Works Ship and boat building works Fruit preserving and jam Bacon curing Coffee and Spice Varnish (,9 1 305 94 966 534 6877 4 35 [241,381 D26,2�) 1),806,628 [13,4J.)7 79 1 372 [261 ,456 23 1 1 7 4 45 4 45 82 632 37 1 10 74 2072 338 1 504 05,2GO [12,885 [12,885 [263,336 D 1 6,01 1 [227,057 [954,122 (,9 2947 [194,481 13 98 29 589 22 289 42 201 12 66 4 17 [36,488 04,741 [55,461 [103,266 [25,977 [8,555 £6,178 [5,4J.)5 £5,322 [4,686 [4/,30 £4,290 [4,275 [4,230 £4,078 [4,01 8 0.743 0.498 £3,471 £3,383 0.352 £3,310 £3,272 £3,221 £3,221 £3,21 1 £3,135 £3,06R {2,823 £2,819 [2,807 £2,577 £2,521 [2,459 £2,165 [2,139 £2,61 4 [2,438 D ,337 £2,101 D ,579 [1 ,993 £1,893 [928 [891 [1 ,840 Colonial wine Sail and oilskin Umbrella factories Wircwork Factories Monumental masonry Hydraulic Gold mining Glass factor), Chaff cutting works Saddlery Spouting and Ridging D ,337 Fibrous-plaster works D ,266 Tobacco [1 ,329 Basket and Perambulator [2,214 Electra-plating works £327 Portmanteau manufacturers £1,142 Tailoring Establishments D ,126 [571 [571 £3,2 1 1 £694 [1 ,226 [1,368 [568 [690 £644 £954 088 £38G [529 Fish curing Cleaning and Dyeing Works Sausage skin factories Asphalt works Dressmaking and miIJinery Toy factones Musical instrument factories Woodcnwan: and wood turning Picture r rame makers Wool rug and mat making Lapidaries Lead headed nail rvfattress factory Rubber stamp making 12 20 34 224 5 Gl 14 64 26 122 197 895 12 84 13 37 1 1 7 594 1 7 92 {l7;290 £1 ,441 £457 {46,593 D ,370 £147 [6,768 [1 ,354 £107 [1 8,708 D ,336 [225 [34,221 £1,316 D 1 2 [247,623 [1 ,257 {l,257 [1 5,070 [1,256 £256 DG;2(,6 [1 ,251 [495 D 42,974 [1,222 [95 [20,541 [I,Z08 [391 13 GG D 5,445 [1,188 20 [10,501 £1 , 167 26 1 57 [29, 1 1 5 [1 ,120 £62 [134 £40 [2lX) £82 1 3 [6,G50 £1 , 108 6 39 [6,61 1 [1 ,102 448 4225 £483,7 1 9 [1 ,080 20 59 14 59 13 174 7 33 382 4128 4 1 9 1 7 3D 14 37 5 1 5 4 6 6 10 42 128 5 [20,724 £1 ,036 [14,141 [1 ,010 D3,10! £1,0 8 0.(144 [I ,rXlG D59,81 9 [942 D,538 £885 [5,274 [879 0.228 D l ,1 32 [3,950 [2,747 D,G50 [23,978 {2,64J.) £803 095 090 [687 [608 £571 [528 [40 £382 £262 [104 £35() [41 [270 £94 [258 [63 [67 [105 £177 OZ {52 324 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT A p P E N D I X D TWENTY LARG EST I N D U STR I i\L ACT I V IT IE S BY CAP ITAL INVESTMENT Source: Generated from information contained in census statistics, respective years. 20 Larg�at industries by capital invested: 1881 '\Ianufdctorics and \\'orks � ." 0 t ] c· J ." !:t Cl " � � '" 8 0 .e ! ] " 0- il 0 c - � � i .§ � ... .,, 'il 1 � � 0 � E E ,;; oD � J � "i j � Cl ." � et "" i:' u Cl .l! � t ... Sawmll1s/s;tsh and door works 43 43 16 " 10 28 47 223 419B 4<) 4238 3970B4 3765-H D73,628 Gasworks 17 188 188 177749 314367 £492,116 Gr,un mills 18 13 10 39 38 131 -1-50 450 207085 150093 0>7,17B Brcwenc5 1 5 1 1 H 19 19 99 526 526 233118 841lW £317,39B Printing works 10 16 15 28 106 1735 44 1779 99449 119717 £119,166 Collieries 28 51 992 992 lOOO7 ! 1 21079 £221,150 (ron and Brass f'oundncs 10 ]() 35 952 953 Kl'iHI 716H6 £155,267 i'"cllmongcnng Tanning amI \\ '()olsc()unng 12 12 17 34 29 1 19 838 21 859 KKtS6 47916 £n6,OH:! Hnck ,md TI)e work:; JI) 19 23 ,,5 127 666 19 685 77030 187]5 [11l5,76S \\'o()l1cn mills 193 114 417 36(KK) 61500 £9H,500 BOl1mg Down and '\(elt Pr(,Sl'rnll� 40 .l(,5 468 62525 34320 £96,B45 f'urnlfUrc mabn� 1l1;J.llu(,u:nlrcrs 14 45 43H 2" 466 7 1 .t15 .t512 [75,927 .\cratcd \'Vatcr and Cordial 14 1 1 12 23 79 223 221-1 36201 30700 £66,901 .\Ialthullses 12 34 67 67 47850 666 ["8,516 Boot '\1,ulufactuH'rs 12 1 1 3 1 956 343 1 21)9 33100 13267 £-t(),367 Coach-bUl\dmg and P Iron and Brass foundncs 1 3 1 1 20 58 17�8 1 710 67658 5321& t 19062 [239,938 I lydraultc gold mining and gold dredging 14 1 0� 12� 617 617 22�787 [22�,787 Gold quartz milling and crushing _'2 -tS 22 101 1 1 56 1 1 56 2 1 1 02 1 [21 1 ,021 \'Coollcn mIlls �78 389 867 9620 60800 1 32859 £203;179 Hnck and Tile works 29 23 1 6 39 1 26 S9-t 598 66363 3-t9H) 10132 [1 1 1 ,m Collieries 1 1 52 79 lH8 lH8 148773 [1�8,773 Fdlmongcring. tanning and woolscounng 1 1 12 11 30 97 11187 1093 �0130 58330 39890 £138,750 Coachbuildlllg 1 5 � 1 5 26 17 89 ()62 66-1- ·12615 39725 23R98 [106,238 :\eratcd \.\.-"ilter 27 1 5 1 9 26 1 1 2 2()-I- 273 31 (1(,0 25538 36880 [93,478 " urniturc making manufacturers 2 1 1 1 17 75 65-1- 53 707 38390 �5�1(1 9232 [93,(132 Soap anu candle 1 8 20-1- 20� 8810 20070 �70�8 05,928 Boot and shoe 1 5 1 6 �2 129-1- 3()0 1 65-1- 2-1-025 3 1099 1 58 1 1 00,935 Chaff cuttmg works 2� 1 5 21 83 263 2()5 36952 1 3873 14 14� [6�,%9 ;\lalthollscs 1 1 1 2 35 85 85 18625 3831S 33(.0 £60,3(XI Total 3 17 -1-5 88 ?(l l 57 178 �(, 257 5�2 1731 19671 9(1-1- "0635 1268�87 1 1 8 19 12 2�80685 £H31 ,08� 326 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT 20 Largest industries by capital invested: 1891 Manufactories and \Vorks >. c .<: � c.. il ." " eo ." � c � ; � "' 0 ::I C ; � -B � rJ E � � .� to e � -€ � g UJ ." .5 =E c u .s ..8 ., � ." :..c a.. e -'" '5 Z � B 0 � ::E il � u ." il ::I � � � li u " c <: � u. � "' ::E " � :t ::E u Gas works 2 4 I 2 2 4 6 27 249 249 49763 61564 619163 1J30,49O Sawmills 47 1 1 13 48 6 34 13 20 SI 243 3260 6 3266 160750 92848 2-16674 £500).72 Meat preserving. freezing and boilin)l down 7 6 6 10 43 1561 7 1568 67206 229607 179338 £476,151 Grain mills 13 2 14 4 8 40 43 129 499 499 77237 148410 166181 £391,828 Graving docks patent slip 4 2 2 9 64 64 141333 4050 202386 £347,769 Printing, Establishments 30 28 7 6 16 37 142 2373 196 2569 71366 96542 173775 £341,683 Iron and Brass Foundries 21 2 12 2 4 2 15 20 79 1785 2 1787 65085 59312 144490 £268,887 Woollen Mills I I 2 4 8 602 573 1175 24600 69067 166288 £259,955 Gold quartz mining and crushing, 62 45 4 24 135 1971 1971 241715 £241,715 Breweries 12 14 4 16 7 19 18 102 476 476 66764 113565 56496 £236,825 Collieries 9 13 6 67 95 1655 1655 155671 £155,671 Hydraulic gold mining and gold dred)lin)l 4 6 63 74 495 495 154270 £154,270 Fcllmongcring 'fanning and Woolscourin)l 12 10 13 7 2 25 33 104 1190 6 11% 48753 66886 37953 £153,592 Flax mills 71 3 34 12 7 16 26 177 3196 8 3204 51905 28238 66649 £146,792 Brick and Tile 14 2 20 4 11 18 33 106 484 10 494 39313 38541 41926 £119,780 Cheese and butter 22 11 10 4 26 74 218 SI 269 41369 31648 27409 £100,426 Furniture making manufacturers 24 14 2 19 21 94 551 34 585 41570 45178 9795 £%,543 Coachbuildin)l 18 6 18 7 2 32 18 lOB 675 3 678 45727 31646 18852 £%,225 Boot and shoe 22 6 10 8 47 1475 468 1943 26010 37500 18627 £82,137 Soat! and candle 6 3 4 19 201 8 209 11282 15650 47511 £24,443 Total -101 57 69 247 55 168 47 258 513 1815 22980 1372 24352 1030033 1170252 2775169 £;4,975,454 327 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT 20 Largest industries br caeital invested: 1896 Manufactories and \'X'orks ca c: .J:: Cc ci. 'IS "1:l 01) "1:l � Cc � c: � 0 � c c: � 0 � � E g .§ .� � r 2 � � il 8' u " t.:.l "1:l c: � � u 0 " � E j 'il � o.. U � "'" A ""() � � "'& 'IS '3 U -o 3 � � � ] Z � � ; -<: f-< � CO r:: :t ... U � Ca .. works 2 4 2 2 4 6 27 293 2 295 41 422 79Glll 645641 D66,673 Meat prcscning, freezing and boiling down 2 4 9 30 1908 52 1 9G1l 64184 320324 312928 £697,436 Sawmills, sash and uoor factories 49 19 23 64 4 42 25 22 51 299 4055 4 4059 1 86958 llMl(,67 298797 £586,422 I Iyuraulic Gold nuning 2(1 43 42 105 744 744 5115674 .£:S05,674 Printing Establishments 31 9 39 9 6 2() 29 154 2 123 228 2351 68847 124369 203699 £396,915 Grain miiJs 1 2 4 9 8 32 23 90 419 419 41730 134714 179403 £355,847 Gold quartz mining and crushing 105 2 3 1 24 168 2814 2814 335474 .035,474 Graving docks patent slip 3 6 29 29 1 3825 501 1 312970 .031,806 Iron ano Bra'is Foundries 22 2 1 5 2 2 21 24 90 1639 1 642 7081 1 55152 126172 £252,135 Gold drcd).,';ng 32 35 258 258 16 1999 86003 £248,()()2 Cheese amJ butter 21 53 8 1 8 2 III 14 44 170 548 28 576 27335 91601 1 \5070 £234,006 Breweries J \ 5 5 12 3 1 2 4 1 6 1 7 85 465 465 51533 1 1 5033 63850 £230,416 \\'oolleo Mills 1 3 4 9 655 761 1416 1 1050 68358 144065 £223,473 J;c1lmongcring 'l'arming amJ \'\'oolscouring 1 5 16 17 29 28 1 17 1621 cS 1629 41490 77186 52729 £171,405 Collieries 1 1 1 8 4 13 1 18 164 1799 1 799 148367 £148,367 Boot and shoe 28 5 I 1 7 14 65 1 752 597 2149 36989 466\11 26436 £1 \0,035 CO.tl c _ :>i " :oS 0 -;:: " § c :§ :..c c.. " v -'" oD � � E (5 ;::; "§ j V " "§ � b � :u 1; f-< .; < '" Cl Il. 0 o:l � ; � ;::; f-< Gas works 2 2 4 3U 568 4 572 65555 88874 817130 £971 ,559 Meat pn;scfving, freezing and boiling- down 2 4 13 34 2172 49 2221 797 13 419775 394232 £893,720 Gold quartz mining and crushing 78 1 5 26 120 4333 4333 735927 035,927 Sawmills, sash and door factories 48 23 26 66 46 29 1 8 70 334 6805 6812 1 87398 108015 408207 003,62U Gold drcdj.,"ng 1 3 1 1 1 121 145 %5 965 161830 528600 £690,430 Printing l �stablishmcnts 35 12 4 40 2 3 35 49 188 2627 507 3 1 34 109130 160787 289621 £559,538 Cheese and butter 27 1112 37 4 17 42 247 1 165 23 1 188 38780 1 47307 202663 £388,750 J JrdrauJJc Gold mining 10 51 68 130 962 962 172594 207750 £380,344 Collieries 1 1 1 6 13 105 145 2460 2460 372093 £372,093 Grain mills 8 5 23 27 78 513 2 5 1 5 44688 132817 18 1 15 1 £358,656 Breweries 9 10 2 I I I 4 16 15 74 677 5 682 78694 139014 76884 £294,592 \X·oollcn Mills 1 III 769 924 1 693 1 1 264 93454 172704 £277,422 J ;cllmongcring Tanning ano \\'ooJscouring 16 4 1 5 1 4 4 4 29 33 1 1 9 1 957 6 1 963 5231 9 1I J2855 S0778 £235,952 Gra\'ing docks patent slip 3 2 7 32 32 1 Il860 14350 204955 £230,165 I ron and Brass Foundries 1 3 1 3 2 14 14 65 1950 5 1 955 58686 45517 107079 £21 1 ,282 'L'aiJncing l:stablishmcnts 32 J2 67 111 22 22 175 722 899 1621 135541 68408 71167 £11 1 ,1116 Dressmaking and millinery 41 12 78 9 69 65 290 2, 2865 2888 109428 73264 1 1 306 £193,998 Boot and shoe 31 24 2 3 27 35 126 190(, 790 2696 57415 70189 49388 £176,992 Furniture making manufacturers 26 !.j 36 4 4 20 32 144 1 243 67 1 3 10 7521Xl 71884 23234 £1 70,338 Engineering works I I I 9 8 37 1437 5 1442 5576tl 34834 64487 f155,o81 Total 402 1 90 88 415 35 ISO 1 38 324 756 2498 33286 6158 39444 1 1 70431 2105768 4935276 £8,21 1,475 329 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT A p P E N D I X E A VERAGE FACTORY S I ZE IN STAF F N UMBER S : 1 8 8 0- 1 9 1 0 Source: Generated from information contained in census s tatistics, respective years. Manufactoncs and \,'orks Aerated \'\!ater and Cordial AgricuJtural Implement manufacturers Ammuniuon factories Antimony mining and Manbr.u1csc Works Bacon Curing Bag and sack works Bakmg powder manufacturer Barbed Wife Bark m,l\ Barrow and ladder factory Basket and Perambulator Bellows factory Bill,ard table BtSCUlt mills Blacking factoncs Block aod pump Bellows making manufacturcr� Botlcr makers Boiling Down and Meat Prcsc[ying Bone Cutting Mills Boot Manufacturers Breweries Bnck and TIle Brush Manufacturers Cap and I lat Factoflcs Cardboard box Cartridge Chaff cutttng \\'orks Chair and washboard Cheese and buner Chemical \\'arks Cigarette manufactories Ckaning and Dyeing \\'orks Clothing Factories Coach-buddmg and Paintmg \\'orks Coconut 011 mill Coffee SpICe and Chicory Collieries Colonial \X'ine Condensed milk Cooperagrs Copper boiling works Cork manufacturer Corset and belt Cutlery factory Cream I "actot')' Cycle works 1881 1886 1891 18% 19111 1906 1911 3 3 -I 5 1-1 20 15 17 18 27 3-1 2 12 -12 5 2-1 7 95 19 3 35 30 22 19 39 5 6 1 5 8 21 3 1 1 5 7 1 1 1 8 2 1l�) 2 3 6 4 3 1 5 41 811 3 4 7 -I 68 6 3 17 2 2 45 1 115 130 85 2 4 4 2S 6 36 16 76 2 1 1 3 1 1 1 4 33 21 11 5 12 6 5 120 7 17 33 6 o/a o/a 6 Cl o/a o/a 6 <) 49 42 4 3 4 1 4 3 1 28 111 12 1 1 1 10 14 13 1 5 o/a 6 4 111 o/a 4 -I 83 43 o/a o/a 9 6 21 28 2 2 29 28 9 4 o/a 6 3 0/. Continued overleaf Manufactories and \X'orks [ Ieel and toe plate I Iematite Patnt factories I lerbal remedy factories I IQsiery J lydraulic Gold mining Ice factories Ink I ron and Brass Foundries I ron pipe and fluming works I.apidancs Lead headed nail Leather aod grindct')' Limeworks Linseed oil mill MachtnislS and Millwrights Malthaus4.!s Manure \\ 'arks Match factories Manress factory Meat preserving, freezing and boiling dnwn Manganese \'(arks l\fonumerltaJ masont')' Musical lrlstrument factory Oilskin I :actories Ointment Oleomargartne works Ornamental Silk Manufacturies Pamt vamlsh Paper bag and cardboard box Paper mtJls Perfumery Picture Frame makers Portmanteau manufacturers Precious stone cutting Printing Pumice works Pyrites-saving machine Rabbit prCSCtYlng works Range-making works Returns not incl. Abm-e Rope and 'I\vine Rubber stamp making Saddlery Sail and oilskin Sauce and Pickle Sausage skin factories Sawmills, sash and door factories 1881 1886 1891 18% 1901 1906 191 1 2 27 1 1 2 10 111 2 17 30 18 19 4 2 16 1 2 23 2 36 4 24 6 4 18 23 4 2 2 3 2 1 8 6 6 1 3 65 1 2 10 28 4 1 5 21l 16 12 4 3 2 2 n/a 0/. 1 7 37 38 2 30 3 3 1 2 65 1 2 33 4 17 28 9 21 � 1 1 1 5 n/. o/a 26 19 o/a 0/. 1 2 14 27 4 ola 0/. 1IJ3 9� 3 86 97 ola n/a 1 3 1 8 39 33 o/a o/a 3 16 18 1 2 20 o/a o/a 21 2S n/a o/a 20 24 2 1 15 9 10 13 13 19 19 13 14 20 21 1 3 330 ENfREPRENEURSHIP AND ECONOMIC DEVELOPMENT f\ V ER J\ G E FACTORY S I ZE I N STAFF N UMBERS : 1 8 8 0 - 1 9 1 0 (CONT I NU ED) Manufactories and \\'orks 1881 1886 1891 1896 1 901 1906 191 1 Manufactories and \X'orks 1881 1886 1891 1896 1901 1 906 191 1 Dressmaking and mtllinery 111 1 1 Sheep dip factories 2 Electric Lighting works Ship and boat building works 4 4 20 " :/cctnc tramways Shirt-maktng 21 18 n/. I �Icctrical cnJ.,rinccnng works Soap and candle 1 1 1 1 1lI 13 13 I �lcctro-plating works Spouting and Ridging 2 8 111 7 10 I �nhrinccring works 39 31 20 Starch works 13 14 1 1 1 3 I;at refining works 14 n/. n/. Stocking \X'caving 34 19 Fcllmongcring Tanning and 1 1 1 2 14 16 13 1 7 Stone Quarries 14 14 4 n/. n/a \\'oolscouring J 'cncmg standard factory Stone sawing works hre-kindle! factones Sugar bOiling and confectionary lLI 4 4 1 2 16 22 Fibrous�plastcr works Sugar refining 27 1 10 160 2;6 228 338 !-'ish curing Tailoring I �stablishmcnts 9 10 9 j;Ia.'X mtlls 18 12 17 17 15 Tcxtilc-b� and sack 14 6 12 11 Flock mills 2 2 4 4 Tinware factories 13 9 6 6 " nut canntng works 13 n/a Tobacco 31l 53 1lI 10 2 Fruit case manufacturer Tobacco pipe 2 2 2 n/a n/. Frutt prcscrnng and jam 1 1 1 3 13 13 Tow hackling Furniture making manufacturers 111 9 9 Toy Factories C;asworks 1 1 17 1 1 19 2S 1 (, VarnIsh 4 Glass bcn:lIing works 1 4 nla n/. V cnctian blmd 4 7 Glass works 0 4 4 4 7 Vincl-,rar \vork.. 6 nla nla Glue Manufacronl's 2 2 2 Violin string Gold dredging \'\'atcrproof factoncs 23 19 n/. n/a Gold quartz mtnmg 14 1 1 1 5 17 36 44 45 \\'hipthong 3 2 4 Gram Mills \'\'oodcnwarc and wood tuming 10 Grass seed dressing 4 \\'001 rug and mat making 9 6 Gra.yins. Docks Pattnt Sh�s 3 nla Woollen MIlls 104 145 147 157 169 155 128 331 ENTREPRENEUR5HIP AND ECONOMIC DEVELOPMENT A p P EN D I X F AUCKLt\ D GOLD M I N IN G COMPAN I ES COMMENCED B ETWEEN 1 886 - 1 8 90 Source: Generated from information contained in Statistics of New Zealand, respective years. ame Year Caeital Name Year Caeital A uckland Gold-mining Company 1886 £10,000 41 Vizard's Gold-mining Company 1890 £10,000 2 Karangaheke Quartz Reduction and Mining Company 1 886 £5,000 42 Excelsior Gold-mining Company 1 890 £12,500 3 South Kapanga Gold-mining Company 1 887 £10,000 43 Shotover Gold-mining Company 1 890 £10,125 4 Vaughan Gold-mining Company 1 887 £8,100 44 Flying Cloud Gold-mining Company 1 890 £12,500 5 Paroquct Gold-mining and Quartz-crushing Company 1 887 £25,000 45 Owera Gold-mining Company 1 890 £12,500 6 Maratoto Gold and Silver-mining Company 1 887 £22,500 46 Pin fire Gold-mining Company 1 890 £12,500 7 Goldwatcr Gold and Silvcr-mining Company 1 887 £6,250 47 Caluope Gold-mining Company 1890 £12,500 8 Gem Gold-mining Company 1 888 £15,000 48 Golden Age Gold-mining Company 1 890 £6,250 9 Askham-Molloy Gold and Silver-extraction Company 1888 £20,000 49 Mount Edward Gold-mining Company 1890 £1 1 ,250 1 0 Observer Gold-mining Company 1 888 £15,000 50 Souvenir Gold-mining Company 1890 £12,500 1 1 Brogan Gold-mining Company 1 888 £15,000 51 Arizona Gold-mining Company 1890 £7,500 1 2 Mata Gold-mining Company 1 888 £27,000 52 Victory Gold-mining Company 1890 £12,500 13 Adeune Amalgamated Gold-mining Company 1 888 £25,000 53 Perseverance Gold-mining Company 1 890 £9,000 1 4 Ncw MoanataiD Gold-mining Company 1 888 £25,000 54 Keystone Gold-mining Company 1 890 £12,500 1 5 Cambria Amalgamated Gold-mining Company 1888 £25,000 55 Consols Gold-mining Company 1890 £25,000 I (j Caledonian Gold-mining Company 1 889 £6,000 56 Just-in -Time Gold-mining Company 1 890 £12,000 1 7 May Quccn Gold-mining Company 1 889 £25,000 57 Kapai Gold-mining Company 1 890 £12,500 1 8 Lone I-land Gold-mining Company 1 889 £15,000 58 Monowai Gold-mining Company 1890 £10,500 19 Norfolk Gold-mining Company 1 889 £25,000 59 Maori Pah Gold-mining Company 1 890 £10,500 2() Dives Gold-mining Company 1 889 £6,000 60 Victoria Gold-mining Company 1890 £12,500 21 'fry Fluke Gold-mining Company 1 889 £12,500 61 Pride of the Hills Gold-mining Company 1 890 £12,500 22 Woodstock United Gold and Silvcr-mining Company 1 890 £27,500 62 Stanley Gold-mining Company 1 890 £9,000 23 Manposa Gold-mining Company 1 890 £12,500 63 Leopold Gold-mining Company 1 890 £13,500 24 Frecdom Gold-mining Company 1 890 £6,000 64 Prosperity Gold-mining Company 1890 £8,750 25 Nemesis Gold-mining Company 1890 £20,000 65 Jubilee Gold-mining Company 1890 £10,000 26 Otam. Gold-mining Company 1 890 £20,000 66 Kuaotunu Gold-mining Company 1890 £12,500 27 Orlando Gold-mining Company 1 890 £10,000 67 Oriental Gold-mining Company 1 890 £10,000 28 Kuaotunu-Bonanza Gold-mining Company 1 890 £30,000 68 Little Nell Gold-mining Company 1 890 £10,000 29 Rcd Mercury Gold-mining Company 1 890 £7,500 69 Hazelbank Gold-mining Company 1 890 £10,500 30 Orient Gold-mining Company 1 890 £12,500 70 Occidental Gold-mining Company 1 890 £25,000 3 1 City of Dunedin Gold-mining Company 1 890 £25,000 7 1 Alfred Gold-mining Company 1890 £13,500 32 Carbinc Gold-mining Company 1 890 £25,000 72 Hongkong Gold-mining Company 1 890 £7,500 33 Junction Gold-mining Company 1890 £7,500 73 Mountain Flower Gold-mining Company 1890 £1 5,000 34 Lady Carrington Gold-mining Company 1890 £12,500 74 Hauraki Gold-mining Company 1 890 £1 1 ,250 35 Waitaia Gold-mining Company 1 890 £1 5,000 75 Pride of Karaka Gold-mining Company 1 890 £8,750 36 Kuaotunu Quartz-Crushing Company 1 890 £5,000 76 Golden Gate Gold-mining Company 1 890 £12,500 37 Wairoa Gold-mining Company 1 890 £10,000 77 Success Gold-mining Company 1890 £1 5,000 38 Midas Gold-mining Company 1 890 £6,250 78 Surplus Gold-mining Company 1890 £12,500 39 Diamond Gold-mining Company 1 890 £10,000 79 Crack-shot Gold-mining Company 1890 £12,500 40 John Bull Gold-mining Company 1 890 £1 2,500 80 Hilda Gold-mining Company 1 890 £1 5,000 TOTAL £1 ,100,475 332 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT B I B L I O GRA P HY PRIMARY OFFIC IAL PUBL I SHED Appendices to the Journal of the House of Representatives, 1 870- 19 10. New Zealand Parliamentary Debates, 1 870- 19 10. New Zealand Yearbook, 1 900-1920 Results of a Census of the Colo'!)' of New Zealand, 1 858- 1926. Statistics of New Zealand, 1 853-1930. NEWSP;\PERS Press, Christchurch, 1 880-1 890 New Zealand Herald, Auckland, 1 878-19 1 0. Newton King Limited centennial, 1 879- 1979', Taranaki Dai!y News, 5 October, 1 979. Obseroer, Auckland, 1 880-1881 . Otago Dai!y Times, Dunedin, 1 878- 1 910. 'Warnock: 1 00 Years Value and Service, 1 886-1 986', Wanganui Newspapers Commemorative Supplement, Wanganui: The Newspapers, 1 986. BOOKS Cydopedia of New Zealand, vols. 1 -6, Christchurch: Cyclopedia Company Limited, 1 897- 1 908. The Dictionary of New Zealand Biograpf(;, vol. 1 , 1 769-1 869, Wellington: Alien and Unwin/Dept. of Internal Affairs, 1 990. The Dictionary of New Zealand Biograpf(;, vol.2, 1 870-1 900, Wellington: Bridget Williams Books/Dept. of Internal A ffairs, 1 993. 333 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT The Dictionary of New Zealand Biography, vol.3, 1 901-1920, Auckland: Auckland University Press/Dept. of Internal Affairs, 1 996. The Dictionary qfNew Zealand Biograpfy. vol. 4, 1 92 1 -1 940, Auckland: Auckland University Press/Dept. of Internal Affairs, 1 998. BOOKS Aldcroft, Derek H . and Simon P. Ville, (eds.) The European Economy, 1 750- 1914: A Thematic Approach, Manchester: Manchester University Press, 1 994. Aldridge, G.F. and C.W. Burnard, A History of the National Dairy AJJociation of New Zealand 1894-1984, Masterton: Printcraft, 1 985. Anderson, Len, Throughout the East Coast: the Story ofWilliams and Kettle Ud, Hastings: New Zealand Pictorial Publications, 1 974. Angus, John H. , Papermaking Pioneers: a History of New Zealand Paper Mills Lmited and its Predecesson, Mataura: New Zealand Paper Mills, 1 976. Angus, John H., The Ironmastm: the Fint One Hundred Yean of H.E. S hacklock Limited, Dunedin: H.E. Shacklock, 1 973 . Arnold, R.D. , The Farthest Promised Land, Wellington: Victoria University Press, 198 1 . Barreto, Humberto, The Entrepreneur in Microeconomic Theory: Disappearance and Explanation, London: Routledge, 1 989. Bassett, Michael, The State in New Zealand, 1840- 1984: Socialism without Doctn·nes?, Auckland: Auckland University Press, 1 998. Baumol, William J., and Alan S . Blinder, Economics Pn·nciples and Polity, 5th ed., Fort Worth: Harcourt Brace J ovanovich, 1 99 1 . Baumol, William, Free-Market Innovation Machine: Anafyiing the Growth Miracle of Capitalism, Princeton: Princeton University Press, 2002. Beaglehole, Diana, Learning to Lead - 50 Years on: A History qf the New Zealand College of Management, 1952-2002, Wellington: New Zealand College of Management Inc., 2004. 334 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT Belich, J ames, Paradise ReJorged: a History of the New Zealanders from the 1880s to the Year 2000, Auckland: Penguin, 2001 . Birch, D. L., Job Creation in America, New York: Free Press, 1987. Blaug, Mark, (ed.), Richard Cantillon (1680- 1734) and Jacques Turgot (1 727- 1781), Aldershot: Edward Elgar Publishing, 1 99 1 . Borrie, W.D., Immigration to New Zealand: 1854- 1938, Canberra: Australian National University, 1 99 1 . Boyce, Gordon, and Simon Ville, The Development of Modem Business, N ew York: Palgrave, 2002. Brasch, Charles, and CR. Nicolson, Hallenstein : the First Century, 1873- 1973, Dunedin: Hallenstein Bros., 1973. Braudel, Fernand, Civziization and Capitalism 151;'- 1�/' Century, Volume 11: The Wheels of Commerce, London: William Collins Sons and Co, 1 982. Brewer, Anthony, Richard Cantillon: Pioneer of Economic Theory, London: Routledge, 1 992. Brinley Thomas, Migration and Economic Growth, 2nd edn., Cambridge: Cambridge University Press, 1973. Brown, Jonathan and Mary Rose, (eds.), Entrepreneurship, Networks and Modern Business, Manchester: Manchester University Press, 1 993. Butlin, Noel, Investment in Australian Economic Development 1861 - 1900, Canberra: Australian National University, 1 972. Cain, P .J . and A.G. Hopkins, Bn·tish Imperialism: Innovation and Expansion 1688- 1914, London: Longman, 1 993. Cameron, Alan and Claire Massey, Small and Medium-Sized Entetprises: a New Zealand PerspectilJe, Auckland: Longman, 1 999. Cameron, Alan, and Claire Massey, Entrepreneurs at Work: Succesiful New Zealand Business Ventures, Auckland: Pearson Education, 2002. Campbell-Hunt, Colin, et aI., World Famous in New Zealand: How New Zealand's Leading Firms Became World-Class Competitors, Auckland: Auckland University Press, 200 1 . Canterbury Progress League, The Story of the Midland Railwqy, Christchurch: Lyttleton Times Co. Ltd., 1 923. 335 ENTREPRENEUIliHIP AND ECONOMIC DEVELOPMENT Cantillon, Richard, Essai sur la Nature du Commerce en General, Henry Higgs (ed.) , London: Macmillan, 1931 . Carrothers, W.A. , Emigration from the British Isles: With special Reference to the Development of the Overseas Dominions, London: P.S. King and Son, 1 929. Casson, M., The Entrepreneur: An Economic Theory. Oxford: Martin Robertson, 1 982. Casson, M., Entrepreneurship and Business Culture: Studies in the Economics of Trust, vol. 1 , Aldershot: Edward Elgar, 1 995. Casson, Mark, The Entrepreneur: An Economic Theory, 2nd edn., Cheltenham: Edward Elgar Publishing, 2003. Chandler, Alfred D. Jr., Strategy and Structure, Cambridge, MA: MIT Press, 1 962. Chandler, Alfred D. Jr., Scale and Scope: the Dynamics of Industrial Capitalism, Cambridge Mass: Harvard University Press, 1 990. Chappell, Norman, New Zealand Banker's Hundred: a History of the Bank if New Zealand, 1861 - 1961 , Wellington: Bank of New Zealand, 1 96 1 . Collier, James, Sir George Grry: Governor, High Commissioner, and Premier: an Historical Biograpf?y, Christchurch: Whitcombe and Tombs, 1 909. Collins, O. F., D .G. Moote and D.B. Unwalla, The Enterprising Man, East Lansing: MSU Business Studies, 1964. Collins, James C, and Gerry I. Porras, Built to Last: Succesiful Habits if Visionary Companies, New York: HarperBusiness, 1 994. Condliffe, J .B. , New Zealand in the Making: A Survry of Economic and Social Development, London: G. Allen and Unwin, 1930. Coulter, Mary, Entrepreneurship in Action, New Jersey: Prentice Hall, 2001 . Cuff, Martine E., Totara Estate: Centenary of the Frozen Meat Industry, Wellington: New Zealand Historic Places Trust, 1982. Dalziel, Raewyn, Julius Vogel: Business Politician, Auckland: Auckland University Press, 1 986. Davidson, Marie, A Hzstory if The Katkoura Co-operative Dairy Co. Ltd., 1894-1994, Kaikoura: Kaikoura Co-operative Dairy Company Ltd., 1 994. 336 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT Deeks, ] . , The Small1'1rm Owner-Manager: Entrepreneurial Behavior and ManagemCllt Practice, New York: Praeger, 1 976. Downey, J.F., Goldmines if the Hauraki Distrid, Wellington: Government Print, 1 935. Drucker, Peter, Innovation and EntrepreneurJhip, London: William Heinemann Ltd, 1 985. Eldred-Grigg, Stevan, A Southern Gentry, New Zealanders who inherited the Earth, Auckland: Heinemann Reed, 1980. Eldred-Grigg, Stevan, The Rich: A New Zealand History, Auckland: Penguin Books, 1 996. Enderwick, Peter, and Michele Akoorie, Fast Fonvard: New Zealand Business in World Markets, Auckland: Longman Paul, 1 996. Franklin, E.C. , A Century if Auckland Commerce 1856- 1956: A Histo,)' of the Auckland Chamber if Commerce, Auckland: Auckland Chamber of Commerce, 1 956 . Gibson, Anne, How to Start a BusinesJ in New Zealand, Auckland: Hodder Moa Beckett, 1 997. Gifford, John, 100 Years if Timber: A History if Henry Brown and the Compm'!J He EstabliJhed, New Plymouth: Taranaki Newspapers Ltd., 1 963. Godley, Andrew,jewish Immigrant EntrepreneurJhip in New York and London 1880- 1914, New York: Palgrave, 2001 . Gordon McLauchlan, The Line that Dared: a History of the Union Steam Ship Compm!J, 1875- 1975, Auckland: Four Star Books, 1 987. Gordon, Donald, Speight's: The Story ifDunedin 's Historic Brewery, Dunedin: Avon Publishers, 1 993. Gordon, Moana, Golden Age if josiah Clifton Firth, Christchurch: Pegasus Press, 1 963. Gore, Ross, Levins 184 1 - 194 1: The History if the First Hundred Years if Levin and Compa'!J Limited, Wellington: Levin and Company, 1956. Habakkuk, H .]., American and British Technology in the Nineteenth Century: The Search for Labour Saving Inventions, Cambridge, Cambridge University Press, 1962. Hartwell, Max, and J aqui Lane, Champions if Enterpnse: Australian Entrepreneurship 1788- 1990, Double Bay, N.s.W.: Focus Books, 1 99 1 . Hawke, G.R., The Making if New Zealand: An Economic History, Cambridge: Cambridge University Press, 1985. 337 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT Haws, Duncan, Union Steamship Compmry of New Zealand, Pembroke: TCL Publications, 1 997. Hay, Geraldine, Bcry ofPlenry Co-operative Dairy Association Dd., 80//' Jubilee, 1 902- 1892, Mt Maunganui: Wm. Hill Printing Ltd., 1 982. Healy, Brian, A Hundred Million Trees: the Story of New Zealand Forest Products Dd., Auckland: Hodder and Stoughton, 1 982. Hebert, Robert F., and Albert N. Link, The Entrepreneur: Mainstream Views and Radical Critiques, 2nd ed., New York: Praeger, 1 988. Heighway, Arthur, Sir William Goo4fellow: His Life and Work, London: White friars Press, 1 972. Higham, Richard, and Sara Williams, The New Zealand Small Business Guide, 3rd ed., Auckland: Penguin Books, 1 999. Hilsgen, Laurie, and Helen Vause, WorkingJrom Home in New Zealand, Auckland: Viking, 1 993 . Honeyman, Katrina, Origins ofEnteprise: Business Leadership in the Industrial Revolution, Manchester: Manchester University Press, 1 982. Hubbard, Elbert, Little Journrys To The Homes Of The Great, 1 3 vols. , Cleveland: World Publishing Co., 1 928. Hunt, Graeme, Hustlers, Rogues and Bubble Bqys: White-Collar Misc0iifin New Zealand, Auckland: Reed, 2001 . Hunt, Graeme, The Rich List: Wealth and Enterpnse in New Zealand 1820-2000, Auckland: Reed, 2000. Hunter, Ian, Robert Laidlaw: Man Jor our Time, Auckland: Castle Publishing, 1 999 . Hunter, Ian, David Levene: A Man and His Business, Auckland: Castle Publishing, 1 999. Inden, Ronald, Imagining India, London: Basil Blackwell, 1 990. Inkson, Kerr, et aI., Theory K: the Kry to Excellence in New Zealand Management, Auckland: David Bateman, 1 986. Irving, ] .e. , A Century's Challenge, Wellington: Wright Stephenson and Co., Ltd., 1 96 1 . Jacques Turgot, Reflections on the Formation and the Distribution of Wealth. Meek, Ronald (transl.), Cambridge: Cambridge University Press, 1 973. 338 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT Kelly, Maunce, Mill in the Vallry: A Ce!ltennial History if Arthur Ellis and Co Limited, Dunedin: Arthur Ellis and Co. Ltd., 1 977. Kirby, M.W., The Decline of British Economic Power Since 1870, London: George Allen and Unwin, 1 98 l . Kirk, Allan, Anchor Ships and Anchor Men: the History if the Anchor Shipping and Foundry Company Ltd., Wellington: Reed, 1967. Kirzner, Israel, Competition and Entrepreneurship, Chicago: University of Chicago, 1 973. Kirzner, Israel, Discovery and the Capitalist Process, Chicago: The University of Chicago Press, 1 985. Knight, Frank, H. , Risk, Uncertainty and Profit, Boston: Houghton Mifflin Company, 1 921 . Lam, Syrine Kit Sum, Portraits o/Successful Entrepreneurs and High-Ffyers: A P!Jchological Perspective, Aldershot: Ashgate, 1 999. Laslett, Peter, Household and f'ami/y in Past Time, London: Cambridge University Press, 1 972. Lawrence, P., and J. Lorsch, Organization and Environment, Boston: Graduate School of Business, Hatvard University, 1 967. Legge, John and Kevin Hindle, Entrepreneurship, How Innovators Create the Future, Melbourne: Macmillan, 1 997. Lenman, Bruce, An Economic History of Modern Scotland /660- 1976, London: B .T. Batsford, 1 977. Lind, Clive A., The Krys to Prospen!J: Centennial History of Southland rrozen Meat lid., Invercargill: Southland Frozen Meat Ltd, 1 981 . Lucas, Kathryn, A New Twist: a Centennial history ofDonaghys Industries Limited, Dunedin: Donaghys Industries, 1979. Marriott, John, Empire Settlement, London: Oxford University Press, 1 927. Mathias, P., The First Industrial Nation: An Economic History ofBn"tain / 700- 1914, 2nd ed. New York: Methuen, 1983 . McAloon, Jim, Nelson: A Regional History, Whatamango Bay: Cape Catley in association with the Nelson City Council, 1 997. 339 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT McAloon, Jim, No Idle Rich: the Wealtry in Canterbury and Otago, 1840- 1914, Dunedin: University of Otago Press, 2002. McAra, J.B. , Gold Mining at Waihi: 1878- 1952, Waihi: Waihi Historical Society, 1 978. McClelland, David, The Achieving Society, New Jersey: D. Van Nostrand Company, 1 961 . McLean, Gavin, A Century of Shipping in New Zealand: the Twentieth Century, Wellington: Grantham House, 2000. McLean, Gavin, Richardson 's ofNapier, Wellington: New Zealand Ship and Marine Society, 1 989. McLean, Gavin, Spinning Yarns: a Centennial History of Alliance Textiles Lld and it's PredeceJ"Jors, 1881 - 1981 , Dunedin: Alliance Textiles, 1 981 . McLean, Gavin, The SOlithern OctOPIiS: the RiJe of a Shipping Empire, Wellington: New Zealand Ship and Marine Society and the Wellington Harbour Board Maritime Museum, 1 990. Marshall, Alfred, Principles of Economics, London: Macmillan, 1 9 1 0. Menger, Carl, P17'nciples of Economics, Dingwall, James and Bert F. Hoselitz (transl.), New York: New York University Press, 1 98 1 . Miles, M . and A.M. Huberman, Qualitative Data AnalYsis, Beverly Hills, CA: Sage Publications, 1 984. Mill, John Stuart, PrinCiples of Political Economy with Some of their Applications to Social Philosopry, London: Longmans, Green and Co., 1 900. Miliar, J . Halket, The Merchants Paved the W try: The First Hundred Years of the Wellington Chamber of Commerce, Wellington: A.H. & A.W. Reed, 1 956. Halket J . and Graham Spencer, High NoonforCoaches 1879- 1979, 2nd ed., Wellington: A.H. Reed, 1 979. Milien, J ulia, Kirkcaldie and Stains: a Wellington Story, Wellington: Bridget Williams Books, 2000. Milien, Julia, Glaxo:from joseph Nathan to Glaxo Wellcome: the History ofGlaxo in New Zealand, 2nd ed., Auckland: Glaxo Wellcome New Zealand, 1 997. Miner, John 4 Routes to Entrepreneurial Success, San Francisco: Berrett-Koehler Publishers, 1 996. 340 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT Mundy, Chris, The New Zealand Guide to Home-Made Monry, Wellington: National Pacific Publications, 1 997. Murphy, Antoin, E. , Richard Cantillon, Entrepreneur and Economist, Oxford: Oxford University Press, 1 986. Naumes, William, The Entrepreneun'al Manager in the Small Business, Massachusetts: Addison­ Wesley Publishing, 1978. Newport, ] .N.W., Sovereign Butter: Sevenry-Five Years of Production, Nelson: Golden Bay Dairy Factory Company, 1 977. Oliver, Leith and John English, The Small Business Book: a New Zealand Guide for the 21st Century, 4th ed., Wellington: Bridget Williams Books, 2002. Oliver, W.H. , (ed) The O:xford History of New Zealand, Wellington: Oxford University Press, 1 981 . Oxford English Dictionary 2nd ed. Simpson, lA. and E.S.C. Weiner (eds.) , vol V, dvandva­ follis, Oxford: Clarendon Press, 1 989, P.307. Parry, Gordon, Engineering Hundred, Christchurch: Montgomery Watson New Zealand, 1 998. Parry, Gordon, N.MA.: the Story of the First 100 years: the National Mortgage and Agenry Compal!J of New Zealand Ltd., 1864-1964, Dunedin: National Mortgage and Agency Co., 1 964. Parry, Gordon, Undenvn/ingAdventure: a Centennial History of the National Insurance Compa'!J of New Zealand Limited, Dunedin: National Insurance Co. of New Zealand, 1 973. Philpott, H.G. , A History of the New Zealand Dairy Industry, 1840- 1935, Wellington: Government Print, 1937. Plant, G.F., OVerJea Settlement: Migration from the United Kingdom to the Dominions, London: Oxford University Press, 1 95 1 . Pool, Ian, The Maori Population of New Zealand 1769- 1971, Oxford University Press, 1 977. Pool, ran, Te Iwi Maon': A New Zealand Population Past Present and PfY!J'ected, Auckland: Auckland University Press, 1 99 1 . Prichard, M., An Economic History of New Zealand to 1939, Auckland: Collins, 1 970. 341 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT Primatt, Stephen, The City and Country Purchaser and Builder, 2nd ed., London: William Leybourne, 1 680. Reed, A.H. , The House o/"Reed: 50 Years o/"Publishing in New Zealand, Wellington: Reed, 1 957. Ricardo, David, On the Principles 0/" Political Economy, and Taxation, Harmondsworth: Penguin Books, 1 971 . Ries, A. , Focus: the Future o/"Your Compat!J Depends on It, New York: Harper Business, 1 996. Robson, Peter E.W., The Aerated Water and 50ft Drink Industry in New Zealand, 1845- 1986, Auckland: New Zealand Soft Drink Manufacturers Association, 1 995. Roche, M.M., A History 0/" New Zealand f'oreJtry, Wellington: NZFC, 1990. Ronstadt, Robert C, Entrepreneurship, Dover, MA: Lord Publishing Co., 1 984. Rostow, W.W., Theorists if Economic Growth from David Hume to the Present: With a Perspective on the Next Century, Oxford: Oxford University Press, 1 990. Rothbard, Murray N., Man, Economy, and State: a Treatise on Economic Principles, Princeton: Van Nostrand, 1 962. Say, Jean-Baptiste, A Treatise on Political Economy or The Production, Distribution and Consumption if Wealth, Prinsep, CR. (trans!.), Philadelphia: Claxton, Remser and Haffelfmger, 1 82 1 . Scholefield, Guy, Newspapers in New Zealand, Wellington: Reed, 1 958. Scholefield, Guy, New Zealand in Evolution, Industrial, Economic and Political, London: Leipsic, T.F. Unwin, 1 909. Scholefield, Guy, H., Dictionary o/"New Zealand Biograpf!J, vols. 1 -2, Wellington: Department of Internal Affairs, 1 940. Schslihammer, Hans and Arthur Kuriloff, Entrepreneurship and Small Business Management, N ew York: John Wiley and Sons, 1 979. Schumpeter, Joseph, Business Cycles: A theoretical, Historical and Statistical AnalYsis 0/" the Capitalist Process, London: McGraw-Hill, 1 964. Schumpter, Joseph A. , Capitalism, Socialism and DemocroD', London: George Allen Unwin, 1 976. 342 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT Scott, Dick, Stock in Trade: Hellal!y's First Hundred Years, 1873- 1973, Auckland: Southern Cross Books, 1 973. Shapero, Albert, Entrepreneurship and Economic Development, Project ISEED, Ltd. Milwaukee, WI: Center for Venture Management, 1 975. Simkin, C.G.F. , The Instabili!J of a Dependent Economy: Economic Fluctuations in New Zealand 1840- 1914, Oxford: Oxford University Press, 1 95 1 . Simon, Julian, The Economic Consequences of Immigration, Oxford: Basil Blackwell, 1 989. Simpson, Frank, The f'zrst Century: A Centenary Review ofWinstone Ltd. , Auckland: Wins tone Ltd., 1 965. Simpson, Thomas, Katm' to Radiata: Origin and Expansion of the Timber Industry in New Zealand, Auckland: Hodder and Stoughton, 1 973. Simpson, Tony, The Immigrants, Auckland: Godwit Publishing, 1 997. Sinclair, K., A History of New Zealand, 4th edn., Auckland: Penguin Books, 1 99 1 . Sinclair, K . , A History of New Zealand, London: Oxford University Press, 1 96 1 . Singleton, John and Paul L. Robertson, Economic Relations between Britain and Australasia 1945- 1970, New York: Palgrave, 2002. Singleton, John, The World Textile Industry, New York: Roudedge, 1 997. Smith, Adam, Inquiry into the Nature and Cauj'es of the Wealth of Nations, New York: Random House, 1 937. Smith, Nigel, Heritage of Industry: Discovering New Zealand's Industrial History, Auckland: Reed, 2001 . Smith, Paul, Su['{'eJs in New Zealand Business 2, Auckland: Hodder Moa Beckett, 1 997. Smith, Paul, Success in New Zealand Business, Auckland: Hodder Moa Beckett, 1996. Stead, Ken, One Hundred I'm Bid: A Centennial History of Turners and Growers, Auckland: Kestrel Publishing, 1 997. Stegall, Donald, Lawrence Steinmetz and John Kilne, Managing the Small Business, Homewood, Illinois: Irwin, 1 976. Stewart, Peter, Patterns on the Plain: a Centennial History of Mosgiel Woollens Limited, Dunedin: Mosgiel, 1 975 343 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT Stone, R.C.]., Economic Development, 1870- 1890 and the Social Consequences, Heinemann Educational Books, Auckland, 1 967. Stone, R.C). , Makers if Fortune; a Colonial Business Communi!} and its Fall, Auckland: Auckland University Press, 1 973. Stone, R.C]., The Making of Russell McVeagh: the First 125 years of the Practice ifRussell McVeagh McKen;;:je Bartleet and Co., 1863- 1988, Auckland: Auckland University Press, 1 99 1 . Stone, R.C]., An Anatomy of the Practice if Law in Nineteenth Century Auckland, Auckland: University of Auckland, 1 988. Stone 's Wellington, Hawke 's BC!)' and Taranaki Directory: 1894-5, Stone Son and Co. , Dunedin, 1 894. Stone 's Otago and Southland Directory, 1 887, Stone Son and Co., Dunedin 1 887. Storey, David, The Peiformance of Small Firms: Profits, Jobs, and Failures, London: Croom Helm, 1 987. Sutch, W.B., Pover!J and Progress in New Zealand, Wellington: Modern Books, 1 941 . Sutch, W.B., Industn"ai Development in New Zealand, Wellington: Dept. of Industries and Commerce, 1 964. Sutch, W.B. Poverty and Progress in New Zealand: A Re-Assessment, Wellington: Reed, 1 969. Swedberg, Richard, (ed.), The Economics and Socioio!JI if Capitalism, Princeton: Prince ton University Press, 1 99 1 . Tipples, Rupert, Colonial Lmdscape Gardener: Alfred Buxton if Christchurch, New Zealand 1872- 1950, Lincoln: Lincoln College, 1989 . Vennell, CW., Men if MetaL· The Story if A.and G. Price Ltd. 1868- 1968, Auckland: Wilson and Horton Ltd, 1968. Vesper, Karl, New Venture Strategies, Englewood Cliffs, NJ: Prentice-Hall, 1 980. Ville, Simon, and Merrett, D., 'The Development of Large Scale Enterprise in Australia, 1 910-64' in Merrett, D., (ed.), Business Institutions and Business Behaviour in Am/raiia, London: Frank Cass, 2000. Ville, Simon, The Rural Entrepreneurs: a History if the Stock and Station Agent Industry in Australia and New Zealand, Cambridge: Cambridge University Press, 2000. 344 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT Wachter, Kenneth, Eugene Hanunel and Peter Laslett, Statistical Studies of Historical Social Structure, London: Academic Press, 1 978. Wake field, Edward Gibbon, A Letter from Sydney and Other Writings, London: Dent, 1 929 . Wake field, Edward Gibbon, A View of the Art of Colonization in letters between a Statesman and a Colonist, Oxford: Clarendon Press, 1 9 1 4. Ward, Arthur, A Command of Cooperatives: The Development of Leadership, Marketing, and Price Control in the Cooperative Dairy Industry of New Zealand, Wellington: The New Zealand Dairy Board, 1 975. Wart, Eric, From Bush-Burn to Butter: a Journey in Words and Pictures, Wellington: Butterworths, 1 988. Weber, Max, The Protestant Ethic and the Spirit of Capitalism, Parsons, Talcott (transl.), London: Unwin University Books, 1 930. Williamson, O.E., The Economic Institutions of Capitalism: Firms, Markets. Relational Contracting, New York: Free Press, 1 985. Wilson, John, Bn"tish Busines History: 1720- 1994, Manchester: Manchester University Press, 1 995 . Wilson, Rebecca and Bronwyn Evans, A Passion for Life: Young New Zealanders Doing Business, Shoal Bay Press: Wellington, 1 999. Winstone Ltd., The Winstone Group of Companies, Auckland: Wins tone Group, 1 974. Yerex, David, Empire of the Dairy rcmners, Petone: NZ Dairy Exporter Books in association with Ampersand Publishing Associates, 1 989. Yin, R., Case Stucfy Research, Beverly Hills, CA: Sage Publications, 1 984. A RTICLES Abramovitz, Moses, 'The Search for the Sources of Growth: Areas of Ignorance , Old and New', Journa! of Economic History, 53:2 (1993), pp.21 7-243. 345 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT Baldwin, J .R., and P.K. Gorecki, 'Firm Entry and Exit in the Canadian Manufacturing Sector, 1 970-1982,' Canadian Journal if Economics. 24, (1991) , pp.300-323. Berghoff, H., and R. Maller, 'Tired Pioneers and Dynamic Newcomers? A Comparative Essay on English and German Entrepreneurial History, 1 870-1 9 1 4' , Economic History Review, 47 (1994), pp.262-87. Birch, David, 'Down but not Out', INC, May 1 988, vol. 10, 5, pp.20-2 1 . Boje, P., 'A Career Approach to Entrepreneurship: The Case o f Thomas B. Thrige', Business History, 35 (1993), pp.33-44. Brockhaus, R. H. , 'The Psychology of the Entrepreneur,' in Kent, c., D. Sexton and K. Vesper (eds.), Enryclopedia of Entrepreneurship, Englewood Cliffs, NJ: Prentice Hall, 1 982, pp.39-57. Brooking, Tom, 'Tarn McCanny and Kitty Clydeside - the Scots in New Zealand', in The S((Jts Abroad: Capital Labour and Enteprise, 1 750- 1914, R.A. Cage (ed.), London: Croom Helm, 1 985, pp. 1 72-1 73. Brown, Kenneth D., 'Models in History: a Micro-Study of Late Nineteenth-Century British Entrepreneurship', Economic History Review, 2nd ser., XLII , 4 (1989), pp.528- 537. Campbell, R.J . , 'The Black Eighties-Unemployment in New Zealand in the 1880s', AlIstralian E((Jnomic History Review, 1 6: 1 (1 976) , pp.67-82. Cas son, Mark, 'Entrepreneurship and the Business Culture,' in Brown, J onathan and Mary Rose (eds.), Entrepreneurship, Networks and Modern BlIsiness, Manchester: Manchester University Press, 1993, pp.30-54. Casson. Mark, 'Entrepreneurial Networks in International Business', Business and Economic History, 26:2 (1997), pp.81 1 -823. Chandler, Alfred D. Jr., 'The Beginnings of Big Business in American Industry', Business History Review, 33:1 (1 959) , pp. 1 -3 1 . Chandler, Alfred D . Jr., 'The Structure o f American Industry in the Twentieth Century: A Historical Overview', Business History Review, 43:3 (1969), pp.255-298. Churchill, B.c., 'Survival Patterns of the Postwar Business Population', Surory of Cumnt Business. (1952), pp. 12- 1 9. 346 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT Coase, R.H. , 'The Nature of the Firm', Economica, IV, 1 3-1 6 (1937), pp.386-405. Cooper, A.C and W.C Dunkelberg 'Entrepreneurial Research: Old Questions, New Answers, and Methodological Issues,' American Journal of Small Business, 1 1 :3 (1987), pp. 1 1 -23. Crouzet, F., 'Capital Formation in Great Britain during the Industrial Revolution', in Crouzet, F., (ed.), Capital rormation in the Industrial Revolution, London, 1 972. Davidson, Graeme, 'Public Utilities and the Expansion of Melbourne in the 1 880s', Australian Economic History Review, 10:1 (1970) , pp. 169- 1 89 . Eisenhardt, K.M., 'Better Stories and Better Constructs: The Case for Rigor and Comparative Logic', Academy of Management Review, 1 6:3 (1 991) , p.620-627. Eisenhardt, K.M. , 'Building Theories from Case Study Research', Academy of Management Review, 1 4 (1989) p.532-550. Eldred-Grigg, Steven, 'Whatever Happened to the Gentry? The Large Landowners of Ashburton County, 1 890-1 896', New Zealand Journal of History, 1 1 : 1 (1 977), pp.3-27. Endres, Tony, 'Designing Unemployment Statistics in New Zealand: A Case History of Political Arithmetic, c. 1 860-1 960', Australian Economic History Review, 22:2 (1 982), pp. 1 5 1 - 1 7 1 . Frost, Lionel, 'The Contribution o f the Urban Sector to Australian Economic Development before 1 91 4', Australian Economic History Review, 38: 1 (1 998) , pp.42- 73. Frost, Lionel, 'Government and the Colonial Economies: An Alternative View', Australian EC'Onomic History Review, 40: 1 (2000), pp.71 -85. Gardner, W.] . , 'A Colonial Economy', in The O:qord History qfNew Zealand, 2nd ed., Geoffrey W. Rice (ed.) , Auckland: Oxford University Press, 1 992. Gartner, William, 'Who is the Entrepreneur? Is the Wrong Question,' American Journal of Small Business, 12:4 (1988), pp. 1 1 -32. Gartner, William and Terence R. Mitchell and Karl H. Vesper, 'A Taxonomy of New Business Ventures', Journal of Business Venturing, 4:3 (1989), pp. 1 69-1 86. Gershenkron, A., 'Social Attitudes, Entrepreneurship, and Economic development', Explorations in Entrepreneurial History, 6 (1953), pp. 1 - 19 . 347 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT Godley, Andrew, 'Jewish Soft Loan Societies in New York and London and Immigrant Entrepreneurship', Business History, 38 (1996) , pp. 1 0 1 -1 16 . Greasley, David, and Les Oxley, 'A Tale of Two Dominions: Comparing the Macroeconomic Records of Australian and Canada since 1 870', Economic History Review, 5 1 :2 (1 998) , pp.294-31 8. Greiner, Larry E., 'Evolution and Revolution as Organizations Grow', Haroard Business Review, 50:4 (1 972), pp.37-47. Hamer, D.A., 'Towns in Nineteenth-Century New Zealand', New Zealand Journal of History, 1 3: 1 (1 979) , pp.5-24. Hawley, Frederick B. , 'The Risk Theory of Profit', QuarterlY Journal of Economics, 7:4 (1 893), pp.495-51 6. Hawley, Frederick B. , 'Enterprise and Profit', Quanerfy Journal of Economics, 5 : 1 (1 900), pp.75-1 05. Hawley, Frederick B., 'A Positive Theory of Economics', Quanerfy Journal of Economics, 1 6:2 (1902), pp.233-264. Hoselitz, B.F., 'A Sociological Approach to Economic Development', Development and Sociery, Novack, D., and R. Lekachman (eds.), New York: St. Martins Press, 1 964. Hoselitz, Bert F., 'The Early History of Entrepreneurial Theory,' Explorations in Entrepreneurial History, 3, (1951) , pp. 1 93-220. Hoselitz, Bert F., 'The Early History of Entrepreneurial Theory', in Esst!)'s in Economic Thought: Aristotle to Marshal!, Spengler, J.J. , and W.R. Allen (eds.), Chicago: Rand MeN ally, 1 960. Hunter, ran and Wilson, Marie, 'Tapping our Entrepreneurial Heritage', Universiry of Auckland Business Review, 5 : 1 (2003), pp. 19-28. Jackson, Kenneth E., 'Electricity Provision and the Concept of Service in New Zealand: an Historical Example of Pricing Policies,' Auckland: Dept. of Economics, University of Auckland, 1 990. Jackson, Kenneth E., 'Natural Resource Markets and Population Growth: the Case of Forest Usage, Markets and Technological Change', Auckland: Dept. of Economics, University of Auckland, 1995 . 348 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT Jackson, R.V., 'The Colonial Economies: An introduction', Australian Economic History Review, 38:1 (1998), pp.7-8. Jones, Geoffrey, 'Company History and Business History in the 1 990s', Business Records and Business History: Essays in celebration of the 50th Anniversary of the Danish National Business Archives, Denmark: Erhvervsarkivet, 1 998. Jones, S.R.H. and D.R. Paul, 'Concentration and Regulation in the New Zealand Brewing Industry, 1 850-1970,' Australian Economic History Review, 3 1 :2 (1991), pp.66-93. Jones, S.R.H., 'Brand Building and Structural Change in the Scotch Whisky Industry since 1 975', Business History, 45:3 (2003), pp. 72-89. Jones, S.R.H., 'Government Policy and Industry Structure in New Zealand, 1 900-1 970' Australian Economic History Review, 39, No. 3, (1999) , pp. 1 9 1 -212. Jones, S.R.H., 'The New Zealand Brewing Industry, 1 840-1 995' in Wilson, R. G., and T. Gourvish (eds.), The Dynamics of the International Brewing Industry since 1800, London: Roudedge, 1 998. Jones, S.R.H., 'The Origins of the Factory System in Great Britain: Technology, Transaction Costs or Exploitation?', in Kirby, Maurice, and Mary Rose (eds.), Business Entetprise in Modern Britain, London: Roudedge, 1 994, pp.3 1 -60. Kiln, Dong-Woon, 'The British Multinational Enterprise in the United States before 1 91 4: The Case of]. & P. Coats', Business History Review, 72:4 (1998) , pp.523-542. Levenstein, M. 'African American Entrepreneurship: The View from the 1 9 10 Census', Business and Economic History 24, (1995), pp.1 06-1 34. Liles, P. 'Who are the entrepreneurs?' Small Business Perspectives, Gorb, P. , P. Dowell and P. Wilson (eds.) , London: Armstrong, 1 981 , pp. 33-50. Linge, G.J.R. 'Manufacturing in Auckland: its Origins and Growth 1 840-1936', New Zealand Geographer, 14:1 (1 958) pp.47-64. Livesay, Harold 'Entrepreneurial Persistence through the Bureaucratic Age', Business History Review, 5 1 (1977), pp.41 5-443. Livesay, Harold, 'Entrepreneurial Dominance in Business Large and Small, Past and Present,' Business History Review, 63 (1 989), pp. 1 -2 1 . 349 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT Magee, G. B., 'Competence or Omniscience? Assessing Entrepreneurship in the Victorian and Edwardian British Paper Industry', Business History Review 71 (1 977), pp.230-59. Martin, Peter, 'Unemployment, Government and the Labour Market in New Zealand, 1 860-1 890', New Zealand Journal of History, 29:2 (1 995) , pp. 170-196. Mathias, Peter, 'Entrepreneurs, Managers and Business Men in Eighteenth-century Britain', Nature oflndustralisation, 3 (1996), pp. 12-32. Merrett, D.T., 'Business Institutions and Behaviour in Australia: A New Perspective', Business History, 42:3 (2000), pp. 1 -12. Miller, W., 'American Historians and the Business Elite', journal of Economic History, 9 (1949), p . 1 84-208. Mills, C. W., 'The American Business Elite: A Collective Portrait', The journal of Economic History, 5 (1 945), p.20-44. Monin, Paul, 'The Maori Economy of Hauraki', New Zealand journal of History, 29:2 (1 995), pp. 1 97 -21 0. Naffzigeer, Douglas W., Jeffrey Hornsby and Donald Kuratko 'A proposed research model of entrepreneurial motivation', Entrepreneurship Theory and Practice, Waco, 1 8:3 (1 994), pp.29-42. Nenadic, Stana, 'Businessmen, the Urban Middle Classes, and the 'Dominance' of Manufacturers in Nineteenth-Century Britain', Economic History Review, 44: 1 (1 991), pp.68-85. Owens, Alastair, 'Inheritance and the Life-Cycle of Family Firms in the Early Industrial Revolution', Business History, 44: 1 (2002), pp.21 -46. Pears on, D.G., 'Small Town Capitalism and Stratification', New Zealand journal of History, 1 4:2 (1980), pp. 107-108. Pollard, S . 'Entrepreneurship, 1 870-1914. ' in Floud, R., and D. McCloskey (eds.) , The Economic History of Britain Since 1700, vol. 2, 1860- 1939, 2nd ed., Cambridge: Cambridge University Press, 1994. Pool, Ian and Richard Bedford, 'Macro Social Change in New Zealand: Historical and International Contexts,' Discussion Paper, University ofWaikato, Population Studies Centre, 1 996. 350 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT Pool, Ian, 'New Zealanders: a Nation of 'Boat People', Hamilton: Population Studies Centre, University ofWaikato, 1 996. Rankin, K., 'Manufacturing Output in New Zealand: 1 870-1940', Nedlands, W.A. : Dept. of Economics, University of Western Australia, 1 992. Raucher, Alan R., 'Dime Store Chains: The Making of Organization Men, 1 880- 1 940', Business History Review, 65:1 (1 991) , pp. 1 30-1 63. Redlich, Fritz, 'Toward the understanding of an unfortunate legacy', I<;yklos, 19 (1 966) , pp.709-1 6. Reynolds, Paul, 'Predicting New Firm Births: Interactions of Organizational and Human Populations,' in Sexton D.L. and J .D. Kasarda (eds.), The State 0/ the Art 0/ Entrepreneurship, Boston: PWS-Kent Publishing, 1 992, pp.268-297 . Rose, Mary, 'The Family Firm in British Business, 1 780-19 14', in Business Enterprise in Modern Britain: From the Eighteen to the Twentieth Century, Kirby, Maurice, and Mary Rose (eds.), 1 994, London: Routledge, pp.61 -87. Sarachek, B., 'American Entrepreneurs and the Horatio Alger Myth', Journal o/Economic History, 38 (1978) , pp.439-56. Sarachek, B., 'Jewish American Entrepreneurs', The Journal o/Economic History 2 (1980) , pp.359-72. Scranton, Philip, 'Diversity in Diversity: Flexible Production and American Industrialization, 1 880-1930', Business History Review, 65:1 (1991) , pp.27-90. Sidney Pollard, 'Capital Exports, 1 870-1 9 14: Harmful or Beneficial?', The Economic History Review, 38:4 (1985), pp.489-514. Simon, Julian L., 'Some Theory of Population Growth's Effect on Technical Change in an Industrial Context', Australian Economic History Review, 26:2 (1 986), pp.1 48-1 58. Smith, Bernard, 'Market Development, Industrial Development: The Case of the American Corset Trade, 1 860-1 920', Business History Review, 65 :1 (1 991), pp.91 -1 29. Stone. RC.]. , 'The Maori Lands Question and the Fall of the Grey Government, 1 879', New Zealand Journal o/History, 1 : 1 (1 967) , pp.51 -74. Supple, B.E., 'American Business History - A Survey', Business History, 1 (1 959), pp.63-76. 351 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT Supple, Barry E., 'A Business Elite: German-Jewish Financiers in Nineteenth-Century New York', Business History Review, 3 1 :2 (1957) , pp. 143-1 77. Tipple, John, 'The Anatomy of Prejudice: Origins of the Robber Baron Legend', Business History Review, 33:4 (1 959) , pp.51 0-523. Toms, Steven, 'Windows of Opportunity in the Textile Industry: The Business Strategies of Lancashire Entrepreneurs, 1 880- 19 1 4', Business History, 40: 1 (1998) , pp. 1 -25. Toms, Steve and Mike Wright, 'Corporate Governance, Strategy and Structure in British Business History, 1950-2000', Business History, 44:3 (2002), pp.9 1 - 1 24. Tucker, K.A., 'Business History: Some Proposals for Aims and Methodology', Business History, 1 4: 1 (1 972), pp. 1 - 1 6. Tuttle, Charles, A . 'The Entrepreneur Function in Economic Literature', Journal of Political El'Onomy, 35, (1 927), pp501 -52 1 . Ville, Simon, 'The Coastal Trade of New Zealand Prior to World War One', New Zealand Journal ofHzstory, 27:1 (1993) , pp.75-89. Ville, Simon, 'The Growth of Specialization in English Ship owning, 1 750-1 850', Economic Hzstory Review, 46:4 (1 993), pp.702-722. Ville, Simon, 'Business Development in Colonial Australia', Australian Economic History Review, 38:1 (1998) , pp.16-41 . Ville, Simon and Grant Fleming, 'The Nature and Structure of Trade-Financial Networks: Evidence from the New Zealand Pastoral Sector', Business History, 42: 1 (2000), pp.41 -58. Watson, J . , and J.E. Everett, 'Do Small Businesses have High Failure Rates? Evidence from Australian Retailers', Journal of Small Business Management, 34 (1 996), pp.45-63. Westhead, Paul and Mike Wright, 'Novice, Portfolio and Serial Founders: are they Different?', Journal of Business Venturing, 1 3:3 (1 998), pp. 1 73-205. THESES Arnold, M.N. , 'The Market for Finance in Late Nineteenth Century New Zealand with special reference to Rural Mortgages', M.A. thesis, Victoria University of Wellington, 1 98 1 . 352 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT Dowie, ] .A. , 'Studies in New Zealand Investment 1 87 1 - 1900', PhD. thesis, Australian National University, Canberra, 1 965. Frankham, Charles, 'The Founding Years: Being the Financial History of the Northern Steamship Co. Ltd. from its Inception to Capital Reorganization in 1 890', M.Com. thesis, University of Auckland, 1 977. Gibson, C. J . , 'Demographic History of New Zealand', PhD. thesis, University of California, Berkley, 197 1 . Henare, Manuka Arnold, 'The Changing Images of Nineteenth Century Milori Society­ from Tribes to Nation', Ph.D. thesis, Victoria University, Wellington, 2001 . 353 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT I N D E X A Adventurer, 25, 83, 261 Aerated water, 12, 195, 207, 248, 282 Agriculture, 67 """itken , John, 195, 281 Alderton, George, 167 Alexander, Donald, 1 12, 1 13, 207, 223, 231 , 244, 282, 283 Aligned activities, 1 70 Anchor brand, 142, 206, 207, 233 Anchor Steam Shipping Company, 207 Angus, John, 52 Anstice, Sophia, 181 , 283 """shburton, 244, 278 Auckland, 78, 175, 204, 223, 252; port of, 69 Australia, 50, 62, 66, 70, 71 , 76, 77, 84, 92, 124, 125, 138, 142, 143, 151, 190, 191 , 198, 203, 221, 270, 291, 302, 304, 351; as export market, 70 B Bain, James Walker, 95, 96, 273, 276 Balance of payments, 1 19 Bal!ance, John, 90 Bank of New Zealand, 70, 74, 221 , 250, 273 Banking: New Zealand, 71 Barr, Peter, 283 Bassett, ;\fichael, 58 Baumol, William, 49, 1 1 7 Belich, James, 58, 130, 139 Bel!, George, 132, 215 Binns, Ernest, 244, 265 Biographical information, 173 Biographical studies: New Zealand, 54 Birth order, 1 77 Blair, John, 214, 244 Bonus schemes, 94, 98, 150 Booster, 56 Boot and shoe factories, 12, 81 , 238, 245, 246, 247, 248, 250 Borrowing, 92 Bradney, James, 244, 265, 269 Branch expansion, 171 Braudel, Fernand, 81 Brett, Henry, 23 1 Brewing, 12, 81 , 206, 248, 268, 303 Brickworks, 81 , 1 13, 248 Briscoe, """rthur and Co." 69 Britain brothers, 259 British imperialism, 57 Brown, Henry, 153, 2 14, 253 Brunskill, William, 246 Brydone, Thomas, 132, 133, 150 Buckland, Alfred, 285 Burns, A.]., 94, 96, 216 Business activity measure, 167 Business Elite, 47, 163 Business History: gaps in New Zealand, 60 Butchers, 20, 136, 249 Butler, William, 283 Butlin, Noel, 125, 304 Butterfield, Francis, 268, 286 Bycroft, John, 84, 168 c Caesar, Roose, 268 Canada, 50, 62, 71, 72, 142, 150, 191 , 291, 302 Cantillon, Richard, 19, 20, 21 , 24, 49 Capital, 295; for expansion, 234; in New Zealand, 71; where limited, 239 354 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT Capital entry costs, 235, 24 1, 245 Capital markets, 220 Capitalism, 43 Capitalist, 84, 261; as parasite, 23 Carter, Francis, 231 , 253, 283, 285 Case analysis: capital entry costs, 236; document, 168; fInance, 229; fIrst venture, 267; immigration, 202; industry groupings, 182; limitations, 184; question set, 169; research, 161; statistics, 172; strategy, 282; summary fIndings, 173 Caselberg, Myer, 201, 207, 281 Cassel process, 147 Cassidy, Hugh, 207 Cas son, l\fark, 46, 47, 215, 257, 264, 283, 297; deftnes entrepreneur, 46; on judgemental decision-making, 47 Chamber of Commerce, 99 Chambers, John, 2 15, 23 1, 269, 282, 286 Chandler, 1\lfred, 60, 162, 227, 294, 305 Cheese exports: see dairy products, 150 Cherrie, David, 214, 244, 268 Chew Chong, 152, 153, 155 Christchurch, 78, 175, 204, 243, 270 City of Glasgow Bank, 73, 74, 91, 221 , 291 , 298 Clark ,James, 233 Class, 84 Coal, 93 Coal industry, 149 Cock, Joseph, 207, 233 Collins and Moore, 48, 49, 1 79 Collinson, Leopold, 267 Colonial Industries Commission, 83, 94, 96 Company history, 51 Company tax, 103 Complementary goods, 34, 126, 139, 149 Condliffe, J .B., 59, 74, 1 18, 199, 299, 300; on long depression, 74 Consequences of decisions, 40 Cooke, Howlison and Co., 243 Cooperatives, 155 Coory, Shirefie, 181 Corban, Assid, 23 1 Coromandel, 144 Corpe, William, 153 Coulls brothers, 95, 230, 244, 273, 276 Coulls, Culling and Co., 95 Court, john, 195, 2 14, 215, 281, 283 Crawford, William, 206, 214 Cream separators, 152 Crown Dairy Company, 153 Customs tax, 93, 97, 102 Cyanide process, 146 Cycle factories, 226, 242, 243, 244, 247 D Dahl, Carl, 152, 195 Dairy factories, 156 Dairy farming, 67 Dairy industry: capital attraction, 156 Dairy Industry Act, 156 Dairy products: early failures, 150; entrepreneurs, 152; history, 149; processing of, 151; Waikato, 151 Davidson, William, 132, 133, 150 Dawson, William, 2 1 1 , 212, 239, 286 Deeks, john, 48, 60 DiversifIcation, 283 Donaghy, 52 Donald, Alexander, 207 Dowie, J . , 13 Drapery, 1 1 , 12, 69, 70, 102, 195, 244, 249, 265, 267, 283 Dressmaking, 12, 225, 227, 283 Drucker, Peter, 44; on entrepreneurship, 44 Dunedin, 78, 1 12, 132, 175, 204, 278; merchants, 69; port, 69; ship, 132 E Economic statistics: limitations, 123 Edendale, 150 Edgecumbe, George, 214 Edmonds, Thomas, 231 355 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT Eldred-Grigg, Stevan, 57 Ellis, Arthur, 232, 279, 285 Eltham, 152 Engineering, 87, 97, 107, 126, 132, 134, 147, 149, 181 , 206, 212, 228, 265, 268, 281, 294, 295 Enterprise: stimulus to, 104 Entrepreneur: as economic class, 34; as economic-dynamo, 22; deftned for research, 61; deftning qualities, 40; early meaning, 19; economic class, 39, 44; idea of in New Zealand, 83; in Middle Ages, 18; limits for case analysis, 164; other terms, 24; place in economy, 82; reinvesting proftts, 22 En trepreneurs: age started, 1 79; fathers of, 164; Lifespan, 174; retirement, 167; settlement, 1 74 Entrepreneurship: and management, 280; capital sources, 223; contemporary deftnitions, 44; experience, 214; failure, 1 72; in contemporary French life, 18; in economic progress, 49; incentive, 104; job creation, 275; model of behaviour, 262; opportunity in economic change, 47; origins, 18; preparation for, 265; values, 294 Essai, 20 Exhibition, 84, 212 Exports, 121, 122; character of ports, 69; classes of, 126; dairy products, 157; emerging, 13 1; explanations for, 123; growth, 129; rank order, 127; staples, 127 F Factory and Industrial Statistics, 1 1 , 226, 235 Factory system, 151, 157 Failure, 261, 269, 273, 278; and persistence, 269 Failure rates, 1 72 Family ftrm, 60, 1 77, 206, 209, 21 1 , 227, 233, 254, 25� 258, 259, 285 Farmers, 178; as entrepreneurs, 14, 20 Father occupations, 1 79 Father-son relationships, 1 77 Fellmongering, 195, 206 Fenwick, George, 207 First-born son, 1 78 First-mover, 242, 244, 282 Firth ,J .e., 55, 99, 167, 171, 201 , 272, 273, 280 Fiscal policy, 99 Flax milling, 148, 154, 232, 283 Fleming, Thomas, 214 Fletcher, Sir James, 55, 231 Foreign investment, 71 Fraser, George, 206, 281 Free trade, 99 Friedlander, Hugo, 20 1 G Gear Meat Preserving and Freezing Company, 134 Gear, James, 122, 133, 134 Gentry, 57 Gibbons, Hopeful, 206, 276, 277 Glaxo, 52, 154 Godley, .\ndrew, 201; on Jewish entrepreneurs, 51 Gold, 143, 149; .\uckland firms, 145; capital attraction, 145; in Otago, 143; industry, 123 Gold dredging, 149 Gold mining, 56, 1 15, 144, 146, 147, 148, 149, 2 1 1, 272, 294, 300, 332 Goodfellow, Sir William, 55, 154, 155, 231 , 276 Government borrowing, 220, 291 Government expenditure, 105, 108, 1 10 Government loans, 108 Government revenue, 102, 105 Grain industry, 12, 269, 270 Greenslade, Charles, 2 1 1, 212, 239, 286 Greiner, Larry, 255, 256, 257, 260, 261, 267, 287, 296 Grey, Sir George, 90, 92, 107 H Habakkuk, H.j . , 49, 50 356 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT Habakkuk, H.J." 50 Hallenstein, 70 Hallenstein, Bendix, 52, 201 , 216, 250, 262, 276, 27� 27� 279, 280, 281 Hannah, Robert, 55, 168, 246, 250 Hastings, 249 Hatrick, Alexander, 207 Hawke, Gary, 59, 1 18, 192, 300; on long depression, 74 Hawley, Frederick, 40; on proprietorship, 40 Hayes, Eben, 202, 206, 213 Hay's wharf, 151 Hayward, Henry, 202 Hellaby, Richard, 133, 134, 213 Holt, Robert, 253, 282 Horatio Alger myth, 162 Horizontal integration, 1 70, 284 Horton, Alfred, 202, 207, 23 1, 234 Hoselitz, Bert, 50 Hubbard. Elbert, 47 Hudson, Richard, 213, 281 , 285 Hunt, Graeme, 60 Husheer, Johann, 214 I Immigrants: age of, 203, 208; new ventures, 209; occupation, 197; skill, 210 Immigration, 50, 76, 77; agricultural labour, 195; aid to colony, 199; assisted, 192; colonial patterns, 191; economic benefits, 192; economic demand, 199; Jewish, 20 1; nominated scheme, 197; pull factors, 193; settlement patterns, 204 Imports, 1 18, 122; main classes, 69 Inheritance, 285 Innovation: defined, 43; economic benefits, 1 1 7 Investment, 71 Invisible hand, 23 Ironware, 102, 213 Isolation of markets, 248, 293 Ivess, Joseph, 207, 275 J Jackson, Ken, 56 James Speight and Co, 21 1 Jewish entrepreneuers, 162, 177, 1 79, 201 , 214, 277 Jewish entrepreneurs, 201 Jewish-American entrepreneurs, 1 77 John Brogden and Sons, 96 Joint-stock companies, 145, 223, 224, 254 Jones, Geoffrey, 162 Jones, Steve, 56, 248 Journeyman, 210 Judgemental decisions, 46, 47, 276, 284 K Kaiapoi Woollen Factory, 97 Karangahake, 147 Kennedy, Martin, 207 Kincaid l\fcQueen and Co." 97 Kincaid, Mc Queen and Co., 1 12 King, l\1ichael, 57 King, Newton, 153, 155, 232, 281 Kirkcaldie and Stains, 70 Kirkcaldie, John, 70, 216, 244, 265 Kirkpatrick, Samuel, 195 Kirzner, Israel, 45 Knight, Frank, 39, 40, 41 , 61 , 164, 29� defullng quality of entrepreneurs, 40; theory of profit, 39 L Labour relations, 226 Laidlaw, Robert, 166, 216, 223, 234, 235, 262, 280 Laslett, Peter, 185 Law, John, 19 Levene, David, 166 Levin and Company, 142 Levin, \Villiam, 133, 134, 142, 233, 282, 285 Lifecycle, 255, 256, 257, 260, 261 , 262, 265, 267, 274, 279, 28� 288, 296, 302 357 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT Lifestyle: of entrepreneurs, 1 71 Lifetime Venture Activity, 185, 187, 188 Lifetime Venture Involvement, 185, 186, 188 Lifetime Ventures Founded, 185, 188 Liles, Patrick, 215 Livesay, Harold, 260 Long Depression, 73, 74, 75, 106, 125, 195, 290, 299, 300; entrepreneurial activity, 195; traditional view, 73 Luttrell. Alfred, 202, 284 Lyon, William, 2 14, 244 Lyttelton: port of, 69 M Maine brothers, 245 Makino Butter and Cheese factory, 154 Management, 280 Management structures, 216 manufacturing, 225 Marshall, Alfred, 34, 35, 36, 37, 38, 39, 44, 49, 61 , 62, 224, 264, 290; man of limited capital, 37; on capital, 38; on economics, 34; on entrepreneurs, 36; on new economic order, 35 Marx, Kat!, 22, 23, 44 Matamata, 272 Mataura, 95, 141 , 273, 276 Mataura Paper l\WJ, 95 McAloon, Jim, 14, 54, 56 McClelland, David, 48 McGlashan, Edward, 95 McGregor, "\lexander, 223 McIndoe, John, 214, 244, 268 McKee, Arthur, 214, 268 l\IcKenzie, John, 55, 1 12, 1 13, 268 McLean, Gavin, 53 McSkimming, Peter, 207 Meat, 130, 132; distribution, 137; explanations for development, 139; first mover advantage, 138; objections, 136 Meat exporting firms, 134 Menger, Carl, 33, 34, 1 1 7, 126, 139, 152; Austrian school of economics, 33; entrepreneur as decision maker, 34; on complementary goods, 34 Menzies, Robert, 195 Merchants, 26, 69, 122, 123, 125, 139, 153, 154, 155, 183, 184, 195, 201 , 207, 21 1, 2 15, 221 , 222, 233, 238, 249, 268, 270, 273, 27� 295, 301, 304 "Midland railway, 73 l\WJ, John Stuart, 92, 198, 210; on capital, 30; on economic systems, 30; on entrepreneurs, 32; on Wake field, 33 l\WJar, Annie, 23 1 l\WJs, James, 142 l\Iilne, Mary, 207 Morrin, Samuel, 122 Mosgiel, 94, 97, 216, 343 Mosgiel Woollen ]\fills, 94, 97 Multiple ventures, 274, 302 Municipal buildings, 108 Myers, Arthur, 201, 206, 2 16, 231 N Napier, 78, 1 13, 14 1 , 204, 244, 249, 278 Nathan, Joseph, 52, 154, 155, 201, 216, 280, 282 Nelson, 78, 142, 149, 195, 198, 204, 278, 283 Neoclassical economics, 35 Networks, 37, 49, 79, 82, 123, 152, 186, 190, 202, 210, 215, 21� 221, 250, 258, 263, 265, 266, 26� 274, 276, 277, 28 1, 287, 288, 293, 294, 296 New Plymouth, 78, 1 13, 153, 198, 204, 244, 249, 278 New Zealand: economic history, 51; emigration, 194; history of entrepreneurship, 86; immigration, 192; layers in economy, 81 New Zealand Clothing Company, 250 New Zealand Cooperative Dairy Company, 154 New Zealand economy: in colonial era, 66; total trade, 1 18 358 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENf New Zealand Insurance Company, 221 New Zealand Loan and Mercantile Agency Company, 139, 215, 273 New Zealand Shipping Company, 141 Newman, Thomas, 231 , 283 Northern Steam Ship Company, 223 o Occupation, 180 Orion, 213 Otago Paper l'vfills, 95 Owner-entrepreneurs, 164 p Parry, Gordon, 52 Partnership, 171 , 23 1, 232, 244, 258 Pascoe, J ames, 168 Pastoralism, 66, 67, 127, 221 Personal capitalism, 228, 254, 259, 294 Pharazyn, Charles, 136 Phoenix Iron Foundry, 206 Planned settlements, 192 Pool, Ian, 56 Population: changes in, 124; changes to, 77; drift, 80; exodus, 76, 194; Foreign-born, 203; growth rates, 125; in cities, 78; Lifespan, 1 74; migration, 193; New Zealand figures, 76 Postal services, 7 1 Price brothers, 97, 147, 148, 206, 281 Prichard, Muriel, 59, 227, 292; on long depression, 75 Printing, 79, 230, 248 Profit motive, 23 Projectors, 22, 25, 26, 73, 84, 95, 133, 139, 142, 222, 252, 261 , 290 Promoter, 83, 261 Protectionism, 99, 100 Provinces, 68, 85 Public debt, 109 Public works, 71 , 104, 107, 1 10, 199, 293; economic benefit, 1 13; expenditure, 109; spending, 107 R Railway, 1 12; construction, 71; income, 72 Railways, 98 Rankin, Keith, 225 Readiness, 215 Recolonisation, 130 Reed, Alfred, 207, 229, 230, 231 Regional history, 54 Reid, Donald, 207 Research questions, 165 Retailing, 53, 303 Reynolds, Henry, 46, 151, 206, 243, 244 Ricardo, David, 23, 29, 30, 197, 290; on entrepreneurship, 29 Richmond, William, 231, 282 Risk, 266; defUled, 20 Ross and Glendining, 13, 56, 97 Russell, George, 207, 268 s Sample size, 165 Sanford, Albert, 84, 206, 269, 284 Sarachek, Bernard, 47, 162, 164, 168, 177, 178, 1 79, 214 Sargood, Percy, 84, 232 Saw milling, 103, 248, 250, 253, 283 Say, Jean-Baptiste, 28, 290; entrepreneurship, 29; on managerial functions, 28 Scholefield, Guy, 166, 228 School construction, 1 1 1 Schumpeter, Joseph, 38, 4 1, 42, 43, 44, 45, 49, 164, 302; creative destruction, 42; defllling quality of entrepreneurs, 43; on innovation, 41 Scientific management, 60 Scientific Management, 60 Scottish enterprise, 84, 200 Segar, Charles, 142 Settlement, 1 74 Sew Hoy, Charles, 207, 2 15, 268 359 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT Shacklock, Henry, 87, 202, 212, 213, 280, 281, 285 Shipping, 140 Sllnkin, C. , 59, 226, 227, 299, 300 Sllnon, Julian, 50, 303 Sinclair, Keith, 60, 74, 97, 1 18, 221 , 299; on long depression, 74 Singer Sewing Machine Company, 249 Skellerup, c;eorge, 20� 276, 281 Skill, 210, 2 1 1, 213, 266, 295 SkUnming stations, 152 Small-scale capitalism, 149 Smiles, Samuel, 47 Smith, Adam, 22, 23, 24, 28, 29, 30, 31, 32, 35, 83, 100, 290; employment of capital, 26; entrepreneur and new opportunity, 26; entrepreneurship and wealth, 28; manufacturers, 27; merchants and country gentlemen, 26; on adventurers, 25; on agriculture and wealth, 23; on dealers, 26; on merchants, 27; on new ventures, 24; on optimism, 27; on projectors, 26; on speculators, 25; on undertakers, 25, 27 Smith, Marianne, 207 Smithfield, 136 Sources: industrial statistics, 12; Statistics of New Zealand, 1 1 Southland Frozen 1feat and Produce Export Co., 133 Speculator, 261 Speight, James, 52, 151, 2 1 1 , 212, 239, 281, 286 Spragg, Wesley, 150 Stains, Robert, 216, 244, 265 Stamper batteries, 144, 147, 148 Statistical techniques, 162 Stead, George, 202, 207, 269, 270, 271, 272 Stock and station, 79, 153, 183, 206, 207, 221, 303 Stone, Russell, 55, 75, 200, 222, 300, 303; on long depression, 75 Strategy, 1 70, 280 Structural characteristics: New Zealand economy, 62 Sutch, W.B., 59, 74, 1 18, 298; on long depression, 74 T Tailoring, 225 Technological innovation, 126 Technology adoption, 234 Tender process, 1 1 1, 1 12 Thames, 78, 87, 148, 175, 23 1, 248, 249, 269, 278, 284 Theomin, David, 201 Thesis: main argument, 62 Thomson, Alexander, 69, 207, 282 Timber industry, 1 13, 128 Todd, Charles, 195, 206, 233 Town life, 78 Trade, 68, 69; balance, 120; deficit, 1 19; New Zealand economy, 1 18 Transition point, 261 , 262, 263, 265, 266, 268, 274, 277, 279, 285, 287, 288 Turgot, Jacques, 21, 22, 49, 61 , 104, 289 Turnbull Martin and Co., 141 Tyree, Alfred, 245, 246 Tyser Line, 14 1 u Undertaker, 24, 261 Union Steam Ship Company, 142, 221 United Kingdom, 70, 103, 122, 139, 141 , 150, 151, 196, 2 15, 216, 221 , 270, 302 Urbanisation, 79, 125, 297, 304 v Venice merchants, 27 Venture activity, 169 Vertical integration, 133, 1 70, 171 , 207, 235, 284 Vesper, Karl, 44, 45 Ville, Sllnon, 52, 55, 303 Vogel, Sir Julius, 71 , 73, 75, 91 , 96, 100, 102, 106, 10� 1 10, 1 19, 193, 202, 298, 299 360 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT w Waihi Gold-mining Co., 141 Waikato Cooperative Cheese Company, 154 Wakefield, 192, 191, 291; relation to l\1ill, 33 Walsh, Leo, 181 , 244, 268, 269 Wanganui, 18, 201, 249, 250, 216, 218 \Varnock, 111omas, 55, 122, 195, 216 Wealth of Nations, 23 Weber, Max, 48 Wellington, 18, 1 15, 20';', 252; port of, 69 Whitney, John, 201, 283 Wigley, Rudoloph, 55, 268 Wilkinson, Charles, 153 Wilson & Kettle, 52 Wilson's Well Park Brewery, 21 1 Winemaking, 206 Winstone, William, 53, 55, 1 12, 191, 201 , 201, 216, 234, 235, 280, 285, 286 Wise, Henry, 55, 231 Women entrepreneurs, 180 Wool, 68, 126, 128, 129, 130, 292 Working class, 85 Wright, John Inglis, 201 361