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Watch that Space! The County Hierarchy in Firm Births and Deaths in the UK 1980-1999

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Author Info
Anyadike-Danes, Michael
Hart, Mark
O'Reilly, Maureen
Abstract

The early 1990s saw concerns about entrepreneurship and the publication of spatially disaggregated VAT data generate a burst of studies of UK firm formation, and ultimately Scotland's "business birth rate strategy". We use twenty years of county VAT data to re-visit the evidence on entrepreneurship and assess its policy implications. By investigating the relationships between registrations, deregistrations and population density the analysis shows that a strategy aimed at the net birth rate might, in principle, be just as effective in achieving its objective if aimed at reducing the death rate, rather than raising the birth rate. Indeed it might be more efficient, since it implies less start-ups that are 'wasted'. By this we mean the necessity, if targets are to be reached, to encourage those individuals who are patently unsuited to running their own business into business ownership. Recent attempts to unite the enterprise and social exclusion agendas may well not be particularly helpful in this respect.

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Publisher Info
Paper provided by Economic Research Institute of Northern Ireland in its series Working Papers NIERC. with number 73.

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Length: 37 pages
Date of creation: May 2002
Date of revision:
Handle: RePEc:eri:niercp:73

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Related research
Keywords: ENTERPRISES ; REGIONAL ECONOMY;

Find related papers by JEL classification:
L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
R12 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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  1. Johnson, Peter & Parker, Simon, 1994. " The Interrelationships between Births and Deaths," Small Business Economics, Springer, vol. 6(4), pages 283-90, August.
  2. Johnson, Peter & Conway, Cheryl, 1997. " How Good Are the U.K. VAT Registration Data at Measuring Firm Births?," Small Business Economics, Springer, vol. 9(5), pages 403-09, October. [Downloadable!] (restricted)
  3. Danson, Michael W, 1995. " New Firm Formation and Regional Economic Development: An Introduction and Review of the Scottish Experience," Small Business Economics, Springer, vol. 7(2), pages 81-87, April.
  4. Catherine Armington & Zoltan J. Acs, 2002. "The Determinants of Regional Variation in New Firm Formation," Regional Studies, Taylor and Francis Journals, vol. 36(1), pages 33-45, February. [Downloadable!] (restricted)
  5. Brian Ashcroft & James Love & Eleanor Malloy, 1991. "New Firm Formation in the British Counties with Special Reference to Scotland," Regional Studies, Taylor and Francis Journals, vol. 25(5), pages 395-409, October. [Downloadable!] (restricted)
  6. Mark Hart & Ronnie Scott, 1994. "Measuring the Effectiveness of Small Firm Policy: Some Lessons from Northern Ireland," Regional Studies, Taylor and Francis Journals, vol. 28(8), pages 849-858, December. [Downloadable!] (restricted)
  7. Audretsch, D.B. & Fritsch, M., 1993. "A Note on the Measurement of Entry Rates," Papers 93-5, Bergakademie Freiberg Technical University - Faculty of Economics and Business Administration.
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