Making Small Firms Work: Policy Dimensions and the Scottish Context
AbstractThe basic framework of the discussion revolves around two samples of Scottish small firms for the periods 1985-88 and 1994-97. It is shown that both samples were drawn during similar (prosperous) phases of the macroeconomic cycle. Further evidence is advanced which indicates that grant and subsidy regimes have not been major determinants of survival and performance. However, the performance of small firms is shown to be better for the second sample period, compared to the first. If macroeconomic effects are neutral, and grant/subsidy regimes are insignificant, then reasons for performance differences, it is argued, must lie elsewhere. A plausible source of this is the insititutional framework. To this end, the evolution of institutional design for stimulating enterprises is documented and dated, and it is shown that the two sample periods fell within two distinct policy regimes. The first involved sectoral indicative planning, under the umbrella of the Scottish Development Agency (SDA), up until 1988. The second involving decentralised enterprise stimulation, under Scottish Enterprise (SE) from 1988 onwards. It is therefore suggested that at least part of the superior performance of small firms in the second sample period may be attributable to the new institutional framework, especially as modified by The Business Birth Rate Strategy.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Centre for Research into Industry, Enterprise, Finance and the Firm in its series CRIEFF Discussion Papers with number 9811.
Date of creation: Oct 1998
Date of revision:
Contact details of provider:
Postal: School of Economics and Finance, University of St. Andrews, Fife KY16 9AL
Phone: 01334 462420
Fax: 01334 462438
Web page: http://crieff.wordpress.com/
More information through EDIRC
small firms; enterprise policy; business incubators; Scottish economy;
Find related papers by JEL classification:
- L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
- L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
- M2 - Business Administration and Business Economics; Marketing; Accounting - - Business Economics
- M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups
- O21 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Reid, Gavin C & Smith, Julia A, 2000.
" What Makes a New Business Start-Up Successful?,"
Small Business Economics,
Springer, vol. 14(3), pages 165-82, May.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bram Boskamp).
If references are entirely missing, you can add them using this form.