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Fiscal Policy and Self-Employment: Targeting Business Growth

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  • Brian Sloan
  • Francis Chittenden

Abstract

The small-business sector is the breeding ground of new businesses, but distinguishing those firms that wish to grow from the hundreds of thousands of lifestyle firms is difficult. Studies suggest very few small firms seek growth, and fiscal policies aimed at promoting business growth could be misdirected in the belief that the ambition to grow is widespread in this part of the economy. The small-firm sector is dominated by the self-employed and an important classification is the large numbers of ‘own-account self-employed‘. It is unclear to what extent these people should be classified as true ‘business owners‘. Using face-to-face interviews, the authors explore the motivations for becoming self-employed and the growth aspirations of self-employed people. Based on the outcomes, suggestions are made about how fiscal policy might be targeted to improve neutrality and promote business growth.

Suggested Citation

  • Brian Sloan & Francis Chittenden, 2006. "Fiscal Policy and Self-Employment: Targeting Business Growth," Environment and Planning C, , vol. 24(1), pages 83-98, February.
    • Handle: RePEc:sae:envirc:v:24:y:2006:i:1:p:83-98
    DOI: 10.1068/c0519
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    References listed on IDEAS

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    1. Taylor, Mark P, 1996. "Earnings, Independence or Unemployment: Why Become Self-Employed?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 58(2), pages 253-266, May.
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    3. Simon C. Parker, 2003. "Does Tax Evasion Affect Occupational Choice?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 65(3), pages 379-394, July.
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