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How accurate are VAT registrations as a measure of entrepreneurship?

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  • Andrew G Ross
  • Kenny Crossan
  • Linda Juleff

Abstract

Comparing VAT registration data with Scottish Clearing Bank Statistics on new start-up activity we assess the extent to which VAT registration data reflect the general level of start-up activity in the Scottish economy for the period 2002–2009. Findings reveal that VAT registration data underestimate the general level of start-up activity by 39%. The data also reveal there is considerable spatial variation in start-up activity across Scottish regions and the recent recession has affected start-up activity irrespective of which measure is used. It is also clear, however, that the recession has affected the general level of start-up activity to a far greater extent.

Suggested Citation

  • Andrew G Ross & Kenny Crossan & Linda Juleff, 2012. "How accurate are VAT registrations as a measure of entrepreneurship?," Local Economy, London South Bank University, vol. 27(3), pages 279-296, May.
    • Handle: RePEc:sae:loceco:v:27:y:2012:i:3:p:279-296
    DOI: 10.1177/0269094211434476
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