Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/19978
Authors: 
van Stel, André J.
Storey, David J.
Year of Publication: 
2004
Series/Report no.: 
Papers on entrepreneurship, growth and public policy 3304
Abstract: 
This paper examines the relationship between firm births and job creation in Great Britain. We use a new data set for 60 British regions, covering the whole of Great Britain, between 1980 and 1998. The relationship between new-firm startups and employment growth has previously been examined either with no time-lag or with only a short period lag. We find, for GB as a whole, no significant relationship between startups and employment creation in the 1980s, but a negative relationship for the 'low enterprise' area of the North East of England. For the 1990s we find a significant positive relationship for GB as a whole but for Scotland, which focussed policy on startups, a negative relationship. We feel this raises questions over policies designed to raise rates of new firm formation as a strategy for employment creation, particularly in 'low enterprise' areas.
Subjects: 
new-firm startups
employment growth
entrepreneurship
Great Britain
JEL: 
M13
L10
J23
R11
Document Type: 
Working Paper

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