Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/24922
Authors: 
Mueller, Pamela
van Stel, André J.
Storey, David J.
Year of Publication: 
2006
Series/Report no.: 
Papers on entrepreneurship, growth and public policy 2406
Abstract: 
This paper re-examines the link between new firm formation and subsequent employment growth. It investigates whether it is possible to have the wrong type of entrepreneurship - defined as new firm formation which leads to zero or even negative subsequent employment growth. It uses a very similar approach to that of Fritsch and Mueller (2004), confirming their findings that the employment impact of new firm formation is in three discrete phases. Then, using data for Great Britain, the paper shows the employment impact of new firm formation is significantly positive in England, but zero in Scotland where formation rates are much lower. It also shows that, in the low enterprise counties of GB, new firm formation has a negative effect on employment, implying that we find that the wrong type of entrepreneurship is possible.
Subjects: 
New firm formation
employment growth
Great Britain
low entrepreneurial regions
JEL: 
J23
L10
M13
R11
Document Type: 
Working Paper

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