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Targeting Firm Births and Economic Regeneration in a Lagging Region

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  • Peter Johnson

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    Abstract

    This paper provides a critical evaluation of the practice of targeting the firm birth rate as part of a regional regeneration policy. It raises some fundamental questions about the appropriateness of such a practice and shows that different specifications of the birth rate generate very different implications for policy intervention, as measured by the number of births required. It also demonstrates that even when the specification is agreed, the translation of the target into actual numbers of births is far from straightforward, especially where the target aspires to match a region’s performance with what is going on elsewhere and where the survival rate of businesses is also being targeted in parallel. The North East of England is used as the particular context for the evaluation, although the discussion has much wider applicability. Copyright Springer 2005

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    File URL: http://hdl.handle.net/10.1007/s11187-005-6454-y
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    Bibliographic Info

    Article provided by Springer in its journal Small Business Economics.

    Volume (Year): 24 (2005)
    Issue (Month): 5 (06)
    Pages: 451-464

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    Handle: RePEc:kap:sbusec:v:24:y:2005:i:5:p:451-464

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    Web page: http://www.springerlink.com/link.asp?id=100338

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    Cited by:
    1. Quatraro, Francesco & Vivarelli, Marco, 2013. "Drivers of Entrepreneurship and Post-Entry Performance of Newborn Firms in Developing Countries," IZA Discussion Papers 7436, Institute for the Study of Labor (IZA).
    2. Santarelli, Enrico & Vivarelli, Marco, 2006. "Entrepreneurship and the Process of Firms’ Entry, Survival and Growth," IZA Discussion Papers 2475, Institute for the Study of Labor (IZA).
    3. M.A. Carree & A.R. Thurik, 2008. "The Lag Structure of the Impact of Business Ownership on Economic Performance in OECD Countries," Small Business Economics, Springer, vol. 30(1), pages 101-110, January.
    4. Vivarelli, Marco, 2012. "Drivers of entrepreneurship and post-entry performance : microeconomic evidence from advanced and developing countries," Policy Research Working Paper Series 6245, The World Bank.
    5. Marco Vivarelli, 2012. "Entrepreneurship and Post-Entry Performance: the Microeconomic Evidence," DISCE - Quaderni del Dipartimento di Scienze Economiche e Sociali dises1286, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    6. Marco Vivarelli, 2013. "Is entrepreneurship necessarily good? Microeconomic evidence from developed and developing countries," Industrial and Corporate Change, Oxford University Press, vol. 22(6), pages 1453-1495, December.
    7. James Derbyshire & Garry Haywood, 2007. "Schumpeterian 'Creative Destruction' and Strengthening the Business Stock Through Firm Formation," Research Papers 200739, University of Liverpool Management School.
    8. Vivarelli, Marco, 2012. "Entrepreneurship in Advanced and Developing Countries: A Microeconomic Perspective," IZA Discussion Papers 6513, Institute for the Study of Labor (IZA).
    9. Pamela Mueller & André Stel & David Storey, 2008. "The effects of new firm formation on regional development over time: The case of Great Britain," Small Business Economics, Springer, vol. 30(1), pages 59-71, January.
    10. Natário, Maria Manuela & Almeida Couto, João Pedro & Couto de Sousa, Maura Helena, 2012. "Innovation Processes of SMEs in Less Favoured Municipalities of Portugal," Investigaciones Regionales, Asociación Española de Ciencia Regional, issue 22, pages 81-103.
    11. repec:rdg:wpaper:em-dp2010-06 is not listed on IDEAS

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