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An Evaluation of Business Start-Up Support for Young People

Author

Listed:
  • Nigel Meager

    (Institute for Employment Studies.)

  • Peter Bates
  • Marc Cowling

    (Department for Work and Pensions (DWP).)

Abstract

The article describes some evaluation findings from a longitudinal study of young people receiving business start-up assistance, through the Prince's Trust (with financial support from the Government). Unusually for evaluations of self-employment schemes, it focuses not solely on issues of deadweight and business survival, but also looks at the impact of programme participation on the subsequent labour market outcomes of participants. It uses a matched comparison group methodology to model programme impact, and finds no statistical evidence that supported entry to self-employment has an impact on participants' subsequent 'employability'. After controlling for other factors, those who leave the programme are no more likely than those in the comparison group to be in employment, and if in employment their earnings are no higher than those in the comparison group.

Suggested Citation

  • Nigel Meager & Peter Bates & Marc Cowling, 2003. "An Evaluation of Business Start-Up Support for Young People," National Institute Economic Review, National Institute of Economic and Social Research, vol. 186(1), pages 59-72, October.
  • Handle: RePEc:sae:niesru:v:186:y:2003:i:1:p:59-72
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    Citations

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    Cited by:

    1. Caliendo, Marco & Künn, Steffen, 2011. "Start-up subsidies for the unemployed: Long-term evidence and effect heterogeneity," Journal of Public Economics, Elsevier, vol. 95(3), pages 311-331.
    2. Inha Oh & Jeong-Dong Lee & Almas Heshmati & Gyoung-Gyu Choi, 2009. "Evaluation of credit guarantee policy using propensity score matching," Small Business Economics, Springer, vol. 33(3), pages 335-351, October.
    3. Cueto Iglesias, Begoña, 2008. "Políticas de fomento del autoempleo y creación de empleo. Un estudio de caso," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 26, pages 195-210, Septiembr.
    4. Lim, Katherine & Michelmore, Katherine, 2018. "The EITC and self-employment among married mothers," Labour Economics, Elsevier, vol. 55(C), pages 98-115.
    5. Cowling, Marc & Millán, José María & Yue, Wei, 2019. "Two decades of European self-employment: Is the answer to who becomes self-employed different over time and countries?," Journal of Business Venturing Insights, Elsevier, vol. 12(C).
    6. Ignacio Moral-Arce & Javier Martín-Román & Ángel L. Martín-Román, 2019. "Cessation of Activity Benefit for Spanish Self-employed Workers: A Heterogeneous Impact Evaluation," Hacienda Pública Española, IEF, vol. 231(4), pages 41-79, December.
    7. Greene, Francis, 2012. "Should the focus of publicly provided small business assistance be on start-ups or growth businesses?," Occasional Papers 12/2, Ministry of Economic Development, New Zealand.
    8. Hans J. Baumgartner & Marco Caliendo, 2008. "Turning Unemployment into Self‐Employment: Effectiveness of Two Start‐Up Programmes," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 70(3), pages 347-373, June.
    9. S. Gubik, Andrea & Kása, Richárd & Farkas, Szilveszter, 2018. "A tervezett magatartás elméletének alkalmazása a vállalkozói hajlandóság alakulásának magyarázatára
      [Applying the theory of planned behaviour to explaining the evolution of entrepreneurship]
      ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(1), pages 74-101.
    10. O'Connor, Allan, 2013. "A conceptual framework for entrepreneurship education policy: Meeting government and economic purposes," Journal of Business Venturing, Elsevier, vol. 28(4), pages 546-563.
    11. Bertoni, Fabio & Martí, Jose & Reverte, Carmelo, 2019. "The impact of government-supported participative loans on the growth of entrepreneurial ventures," Research Policy, Elsevier, vol. 48(1), pages 371-384.
    12. Aparna Mathur, 2010. "Health insurance and job creation by the self-employed," Small Business Economics, Springer, vol. 35(3), pages 299-317, October.
    13. L. Behrenz & L. Delander & J. Månsson, 2016. "Is Starting a Business a Sustainable way out of Unemployment? Treatment Effects of the Swedish Start-up Subsidy," Journal of Labor Research, Springer, vol. 37(4), pages 389-411, December.
    14. Werner Hölzl, 2010. "The Economics of Entrepreneurship Policy: Introduction to the Special Issue," Journal of Industry, Competition and Trade, Springer, vol. 10(3), pages 187-197, September.
    15. Concepción Román & Emilio Congregado & José Millán, 2011. "Dependent self-employment as a way to evade employment protection legislation," Small Business Economics, Springer, vol. 37(3), pages 363-392, October.
    16. Henrekson, Magnus & Stenkula, Mikael, 2009. "Entrepreneurship and Public Policy," Working Paper Series 804, Research Institute of Industrial Economics.
    17. Wolff, Joachim & Nivorozhkin, Anton, 2008. "Start me up: The effectiveness of a self-employment programme for needy unemployed people in Germany," IAB Discussion Paper 200820, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    18. José Millán & Emilio Congregado & Concepción Román, 2012. "Determinants of self-employment survival in Europe," Small Business Economics, Springer, vol. 38(2), pages 231-258, February.
    19. Burchell, Brendan. & Coutts, Adam. & Hall, Edward. & Pye, Nick., 2015. "Self-employment programmes for young people : a review of the context, policies and evidence," ILO Working Papers 994898993402676, International Labour Organization.
    20. Andrea S. Gubik & Zoltán Bartha, 2017. "Cultural Characteristics and the Entrepreneurial Intentions of University Students," Theory Methodology Practice (TMP), Faculty of Economics, University of Miskolc, vol. 13(02), pages 3-12.
    21. Julian S. Frankish & Richard G. Roberts & Alex Coad & Taylor C. Spears & David J. Storey, 2013. "Do entrepreneurs really learn? Or do they just tell us that they do?," Industrial and Corporate Change, Oxford University Press, vol. 22(1), pages 73-106, February.
    22. Román, Concepción & Congregado, Emilio & Millán, José María, 2013. "Start-up incentives: Entrepreneurship policy or active labour market programme?," Journal of Business Venturing, Elsevier, vol. 28(1), pages 151-175.

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