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High growth firms, jobs and peripheral regions: the case of Scotland

Author

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  • Colin Mason
  • Ross Brown
  • Mark Hart
  • Michael Anyadike-Danes

Abstract

Enterprise policy is increasingly favouring support for high growth firms (HGFs). However, this may be less effective in promoting new jobs and economic development in peripheral regions. This issue is addressed by a study of HGFs in Scotland. Scottish HGFs differ in a number of respects from the stylised facts in the literature. They create less employment than their counterparts elsewhere in the UK. Most have a significant physical presence outside of Scotland, thereby reducing their Scottish ‘footprint’ and domestic job creation. Scottish HGFs appear to have a high propensity to be acquired, increasing the susceptibility of the head office to closure. The evidence suggests that the tendency towards ‘policy universalism’ in the sphere of entrepreneurship policy is problematic.

Suggested Citation

  • Colin Mason & Ross Brown & Mark Hart & Michael Anyadike-Danes, 2015. "High growth firms, jobs and peripheral regions: the case of Scotland," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 8(2), pages 343-358.
    • Handle: RePEc:oup:cjrecs:v:8:y:2015:i:2:p:343-358.
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    File URL: http://hdl.handle.net/10.1093/cjres/rsu032
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    Cited by:

    1. Guilherme Fowler A. Monteiro & Adriana Bruscato Bortoluzzo & Pedro Lipkin P. Rosa, 2021. "Is there heterogeneity among persistent high‐growth firms?," Growth and Change, Wiley Blackwell, vol. 52(4), pages 2272-2292, December.
    2. Laura Reynolds & Dylan Henderson & Chen Xu & Laura Norris, 2021. "Digitalisation and the foundational economy: A digital opportunity or a digital divide for less-developed regions?," Local Economy, London South Bank University, vol. 36(6), pages 451-467, September.
    3. Soroui, Sarah T., 2021. "Understanding the drivers and implications of remote work from the local perspective: An exploratory study into the dis/reembedding dynamics," Technology in Society, Elsevier, vol. 64(C).
    4. Ross Brown & Suzanne Mawson, 2016. "Targeted support for high growth firms: Theoretical constraints, unintended consequences and future policy challenges," Environment and Planning C, , vol. 34(5), pages 816-836, August.
    5. Ron Martin & Peter Sunley & Peter Tyler, 2015. "Local growth evolutions: recession, resilience and recovery," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 8(2), pages 141-148.
    6. Ross Brown & Colin Mason, 2017. "Looking inside the spiky bits: a critical review and conceptualisation of entrepreneurial ecosystems," Small Business Economics, Springer, vol. 49(1), pages 11-30, June.
    7. Suzanne Mawson, 2018. "Customer perceived value in high growth firms," Revista Cuadernos de Economia, Universidad Nacional de Colombia, FCE, CID, vol. 37(75), pages 755-778, December.
    8. Juntao Tan & Kevin Lo & Fangdao Qiu & Wenxin Liu & Jing Li & Pingyu Zhang, 2017. "Regional Economic Resilience: Resistance and Recoverability of Resource-Based Cities during Economic Crises in Northeast China," Sustainability, MDPI, vol. 9(12), pages 1-15, November.
    9. Weilong Wang & Jianlong Wang & Shaersaikai Wulaer & Bing Chen & Xiaodong Yang, 2021. "The Effect of Innovative Entrepreneurial Vitality on Economic Resilience Based on a Spatial Perspective: Economic Policy Uncertainty as a Moderating Variable," Sustainability, MDPI, vol. 13(19), pages 1-23, September.
    10. Cristian Gherhes & Tim Vorley & Nick Williams, 2018. "Entrepreneurship and local economic resilience: the impact of institutional hysteresis in peripheral places," Small Business Economics, Springer, vol. 51(3), pages 577-590, October.
    11. Sara Fernández‐López & David Rodeiro‐Pazos & María Jesús Rodríguez‐Gulías & Manuel Anxo Nogueira‐Moreiras, 2022. "Sustainable university entrepreneurship: Revisiting firm growth patterns," Business Strategy and the Environment, Wiley Blackwell, vol. 31(4), pages 1334-1346, May.
    12. Vítor Braga & Maria Queirós & Aldina Correia & Alexandra Braga, 2018. "High-Growth Business Creation and Management: a Multivariate Quantitative Approach Using GEM Data," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 9(2), pages 424-445, June.
    13. Kevin Ralston & Dawn Everington & Zhiqiang Feng & Chris Dibben, 2022. "Economic Inactivity, Not in Employment, Education or Training (NEET) and Scarring: The Importance of NEET as a Marker of Long-Term Disadvantage," Work, Employment & Society, British Sociological Association, vol. 36(1), pages 59-79, February.

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