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Small Business Growth During a Recession

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  • Christiana McFarland
  • J. Katie McConnell

Abstract

This research examines the relationship between local government policies and small business growth at various stages of development. Businesses at different stages of development have distinct needs; therefore, we predict that they will interact with the local policy environment in different ways. We use data from the 2009 International City/County Management Association and National League of Cities economic development survey, the National Establishment Time Series Database, and the American Community Survey to construct four regression models to predict growth between 2007 and 2008 of small businesses overall, small businesses in the self-employed stage, small businesses with 1 to 9 employees, and small businesses with 10 to 99 employees. Overall, our findings suggest that the local policies that most significantly affect small business growth are those that create a supportive culture between the local public and private sectors and provide regulatory assistance.

Suggested Citation

  • Christiana McFarland & J. Katie McConnell, 2013. "Small Business Growth During a Recession," Economic Development Quarterly, , vol. 27(2), pages 102-113, May.
    • Handle: RePEc:sae:ecdequ:v:27:y:2013:i:2:p:102-113
    DOI: 10.1177/0891242412461174
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    References listed on IDEAS

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    1. Acs, Zoltan J. & Armington, Catherine, 2004. "The impact of geographic differences in human capital on service firm formation rates," Journal of Urban Economics, Elsevier, vol. 56(2), pages 244-278, September.
    2. Catherine Armington & Zoltan J. Acs, 2008. "The Determinants of Regional Variation in New Firm Formation," Chapters, in: Entrepreneurship, Growth and Public Policy, chapter 18, pages 224-243, Edward Elgar Publishing.
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