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The link between firm births and job creation: Is there a Upas Tree effect? Author info | Abstract | Publisher info | Download info | Related research | Statistics Adriaan J. van Stel ()
David J. Storey ()
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This paper examines the relationship between firm births and job creation in Great Britain. We use a new data set for 60 British regions, covering the whole of Great Britain, between 1980 and 1998. The relationship between new-firm startups and employment growth has previously been examined either with no time-lag or with only a short period lag. We find, for GB as a whole, no significant relationship between startups and employment creation in the 1980s, but a negative relationship for the 'low enterprise' area of the North East of England. For the 1990s we find a significant positive relationship for GB as a whole but for Scotland, which focussed policy on startups, a negative relationship. We feel this raises questions over policies designed to raise rates of new firm formation as a strategy for employment creation, particularly in 'low enterprise' areas.
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Paper provided by Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group in its series Papers on Entrepreneurship, Growth and Public Policy with number
2004-33.
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Length: 33 pages
Date of creation: Jun 2004Date of revision:
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Find related papers by JEL classification: J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups R11 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes
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Pamela Mueller & André van Stel & David J. Storey, 2006.
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Papers on Entrepreneurship, Growth and Public Policy
2006-24, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
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"The Persistence of Regional New Business Formation-Activity over Time – Assessing the Potential of Policy Promotion Programs ,"
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Michael Fritsch & Pamela Mueller, 2005.
"The Persistence of Regional New Business Formation-Activity over Time - Assessing the Potential of Policy Promotion Programs ,"
Papers on Entrepreneurship, Growth and Public Policy
2005-02, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
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Journal of Evolutionary Economics ,
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ERS-2005-075-ORG Revision, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni.
[Downloadable!]
Other versions:
André van Stel & Kashifa Suddle, 2005.
"The Impact of New Firm Formation on Regional Development in the Netherlands ,"
Scales Research Reports
H200503, EIM Business and Policy Research.
[Downloadable!] André van Stel & Kashifa Suddle, 2006.
"The Impact of New Firm Formation on Regional Development in the Netherlands ,"
Scales Research Reports
H200604, EIM Business and Policy Research.
[Downloadable!] André Stel & Kashifa Suddle, 2008.
"The impact of new firm formation on regional development in the Netherlands ,"
Small Business Economics ,
Springer, vol. 30(1), pages 31-47, January.
[Downloadable!] (restricted) Andre van Stel, .
"COMPENDIA: Harmonizing business ownership data across countries and over time ,"
Papers on Entrepreneurship, Growth and Public Policy
2005-05, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
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Other versions: Martin Carree & Roy Thurik, 2006.
"The Lag Structure of the Impact of Business Ownership on Eco-nomic Performance in OECD Countries ,"
Papers on Entrepreneurship, Growth and Public Policy
2006-02, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
[Downloadable!]
Other versions:
Carree, M.A. & Thurik, A.R., 2006.
"The Lag Structure of the Impact of Business Ownership on Economic Performance in OECD Countries ,"
Research Paper
ERS-2006-064-ORG Revision, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni.
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"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.
[Downloadable!] (restricted) Andre van Stel & David Storey & Roy Thurik, 2006.
"The effect of business regulations on nascent and actual entrepreneurship ,"
Papers on Entrepreneurship, Growth and Public Policy
2006-04, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
[Downloadable!]
James Derbyshire & Garry Haywood, 2007.
"Schumpeterian 'Creative Destruction' and Strengthening the Business Stock Through Firm Formation ,"
Research Papers
200739, University of Liverpool Management School.
[Downloadable!]
André van Stel & Mickey Folkeringa & Sierdjan Koster, 2009.
"Start-ups as drivers of incumbent firm mobility: An analysis at the region-sector level for the Netherlands ,"
Scales Research Reports
H200905, EIM Business and Policy Research.
[Downloadable!]
David B. Audretsch & Roy Thurik & Andre van Stel & M.A. Carree, 2006.
"Does Self-Employment Reduce Unemployment? ,"
Papers on Entrepreneurship, Growth and Public Policy
2005-07, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
[Downloadable!]
Other versions:
André van Stel & Roy Thurik & David Audretsch & Martin Carree, 2007.
"Does Self-Employment Reduce Unemployment? ,"
Scales Research Reports
H200709, EIM Business and Policy Research.
[Downloadable!] A. Roy Thurik & Martin A. Carree & Andre van Stel & David B. Audretsch, 2007.
"Does Self-Employment reduce Unemployment? ,"
Jena Economic Research Papers in Economics
2007-089, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics, Thueringer Universitaets- und Landesbibliothek.
[Downloadable!] Audretsch, David B & Carree, Martin A & Thurik, A R Roy & van Stel, A J, 2005.
"Does Self-Employment Reduce Unemployment? ,"
CEPR Discussion Papers
5057, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) André van Stel & Roy Thurik & David Audretsch & Martin Carree, 2005.
"Does Self-Employment Reduce Unemployment? ,"
Scales Research Reports
N200504, EIM Business and Policy Research.
[Downloadable!] Thurik, A. Roy & Carree, Martin A. & van Stel, André & Audretsch, David B., 2008.
"Does self-employment reduce unemployment? ,"
Journal of Business Venturing ,
Elsevier, vol. 23(6), pages 673-686, November.
[Downloadable!] (restricted) P. Mueller, 2006.
"Entrepreneurship in the Region: Breeding Ground for Nascent Entrepreneurs? ,"
Small Business Economics ,
Springer, vol. 27(1), pages 41-58, August.
[Downloadable!] (restricted)
Michael Fritsch & Pamela Mueller, 2006.
"The Effect of New Business Formation on Regional Development over Time: The Case of Germany ,"
Papers on Entrepreneurship, Growth and Public Policy
2006-19, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
[Downloadable!]
Other versions: Nikolaj Malchow-Møller & Bertel Schjerning & Anders Sørensen, 2009.
"Entrepreneurship, Job Creation, and Wage Growth ,"
CAM Working Papers
2009-01, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
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Other versions: Sherrill Shaffer & Iftekhar Hasan & Mingming Zhou, 2008.
"New Small Firms And Dimensions Of Economic Performance ,"
CAMA Working Papers
2008-24, Australian National University, Centre for Applied Macroeconomic Analysis.
[Downloadable!]
Other versions: André Stel & David Storey & A. Thurik, 2007.
"The Effect of Business Regulations on Nascent and Young Business Entrepreneurship ,"
Small Business Economics ,
Springer, vol. 28(2), pages 171-186, March.
[Downloadable!] (restricted)
Other versions:
André van Stel & Roy Thurik & David Storey, 2006.
"The effect of business regulations on nascent and young business entrepreneurship ,"
Scales Research Reports
H200609, EIM Business and Policy Research.
[Downloadable!] Stel, A.J. van & Storey, D. & Thurik, A.R., 2006.
"The Effect of Business Regulations on Nascent and Young Business Entrepreneurship ,"
Research Paper
ERS-2006-052-ORG Revision, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni.
[Downloadable!] Michael Fritsch, 2008.
"How does new business formation affect regional development? Introduction to the special issue ,"
Small Business Economics ,
Springer, vol. 30(1), pages 1-14, January.
[Downloadable!] (restricted)
Michael Fritsch & Pamela Mueller, 2004.
"The Effects of New Business Formation on Regional Development over Time ,"
Papers on Entrepreneurship, Growth and Public Policy
2004-36, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
[Downloadable!]
Jolanda Hessels & Marco Gelderen & Roy Thurik, 2008.
"Entrepreneurial aspirations, motivations, and their drivers ,"
Small Business Economics ,
Springer, vol. 31(3), pages 323-339, October.
[Downloadable!] (restricted)
Josep Arauzo Carod & Daniel Liviano Solís & Mònica Martín Bofarull, 2008.
"New business formation and employment growth: some evidence for the Spanish manufacturing industry ,"
Small Business Economics ,
Springer, vol. 30(1), pages 73-84, January.
[Downloadable!] (restricted)
Niels Bosma & R. Sternberg & Zoltan Acs, 2008.
"The Entrepreneurial Advantage of World Cities ,"
Scales Research Reports
H200810, EIM Business and Policy Research.
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