This paper argues that there have been three distinct phases of enterprise policy in the UK in the past 30 years: the 1970s saw no effective enterprise policy ('policy off'); the 1980s witnessed an attempt to increase the number of start-ups; and the 1990s saw a concentration on 'business quality'. This paper looks at how enterprise has evolved in Cleveland/Tees Valley over the past three decades. It suggests—and finds—that businesses in the 1980s were more numerous but of lower 'quality' (even if the influence of unemployment is accounted for) than those from the 1970s and 1990s. This implies that we should be cautious about the value of policy attempts to increase business formation rates in areas such as Cleveland/Tees Valley.
Get full access to this article
View all access options for this article.
References
1.
Almus, M. (2002) What characterises a fast growing firm, Applied Economics, 34, pp. 1497-1508.
2.
Almus, M. and Nerlinger, E.A., (1999) The growth of new technology-based firms: which factors matter?, Small Business Economics, 13(2), pp. 141-154.
3.
Atkinson, B., Baker, P. and Milward, B. (1996) Economic Policy. Basingstoke : Macmillan.
4.
Begley, T.M. and Boyd, D.P. (1987) A comparison of entrepreneurs and managers of small business firms, Journal of Management, 13(1), pp. 99-108.
5.
Birch, D.L. (1979) The job generation process, reprinted in: D. J. Storey, (Ed.) Small Business, Critical Perspectives in Business and Management, 11:4, pp. 431-465. London : Routledge.
6.
Boswell, J. (1973) The Rise and Decline of Small Firms. London: George Allen and Unwin.
7.
Briny, U. and Kohaut, S. (1999) Employment Growth determinants in new firms in eastern Germany, Small Business Economics, 3(2), pp. 155-170.
8.
Bruderl, J. and Preisendorfer, P. (2000) Fast growing businesses: empirical evidence from a German study, International Journal of Sociology, 30(3), pp. 45-70.
9.
Brush, C.G. and Chaganti, R. (1998) Business without glamour? An analysis of resources on performance by size and age in small service and retail firms, Journal of Business Venturing, 14(3), pp. 233-257.
10.
Bryson, J.R., Keeble, D. and Wood, P. (1997) The creation and growth of small business service firms in post-industrial Britain, Small Business Economics , 9, pp. 345-360.
11.
Burke, A.E., Fitzroy, F.R. and Nolan, M.A. (2000) When less is more: distinguishing between entrepreneurial choice and performance, Oxford Bulletin of Economics and Statistics , 62(5), pp. 565-587.
12.
Burke, A.E., Fitzroy, F.R. and Nolan, M.A. (2002) Self employment and job creation; the roles of gender, non-pecuniary motivation and entrepreneurial ability, Small Business Economics, 19(3), pp. 255-270.
13.
Bygrave W.D., Hay M., Lopez-Garcia P. and Reynolds P.D. (2001) The global entrepreneurship monitor (GEM) model for economic growth: a study of venture capital in 19 nations, in: Frontiers of Entreprenurship Research, 2001, Proceedings of the 21st Annual Entreprenurship Conference , Babson College, MA, pp. 510-522.
14.
Carree, M.van Stel, A. , Thurik, R. and Wen-Nekkers, S. (2002) Economic development and business ownership: an analysis using data of 23 OECD countries in the period 1976-1996, Small Business Economics, 19(3), pp. 271-290.
15.
Cooper, A.C., Gimeno-Gascon, F.J. and Woo, C.Y. (1994) Initial human and financial capital as predictors of new venture performance, Journal of Business Venturing , 9(5), pp. 371-395.
16.
Davidsson, P.Kirchhoff, B.Abulnassor, H.J. and Gustausson, H. (2002) Empirical analysis of business growth factors using Swedish data, Journal of Small Business Management, 40(2), pp. 332-349.
17.
Davies, H. (2002) A Review of Enterprise and the Economy in Education . London: HM Treasury.
18.
Delmar, F. (1997) Measuring growth: methodological considerations and empirical results, in: R. Donckels and A. Miettinen (Eds) Entrepreneurship and SME Research: On its Way to the Next Millennium, pp. 199-216. Alder-shot : Edward Elgar.
19.
Delmar, F., Davidsson, P. and Gartner, W. (2003) Arriving at the high growth firm, Journal of Business Venturing, 18, pp. 189-216.
20.
Disney, R., Haskel, J. and Heden, Y. (2003) Restructuring and productivity agrowth in UK manufacturing , Economic Journal, 113, pp. 666-694.
21.
Goedhuys, M. and Sleuwaegen, L. (2000) Entrepreneurship and growth of entrepreneurial firms in Cote d'lvoire, Journal of Development Studies, 36(3), pp. 122-145.
22.
Greene, F.J. (2002) An investigation into enterprise support for younger people, 1975-2000, International Small Business Journal, 20(3) pp. 315-336.
23.
Harhoff, D., Stahl, K. and Woywode, M. (1998) Legal form, growth and exit of West German firms—empirical results from manufacturing, construction, trade and service industries, Journal of Industrial Economics, 66(4), pp. 453-488.
24.
Henley, A. (2004) Job creation by the self-employed: the roles of entrepreneurial and financial capital, Small Business Economics (forthcoming).
25.
Hm Treasury/Sbs (2002) Enterprise Britain: A Modern Approach to Meeting the Enterprise Challenge. London: HMSO.
26.
Joseph, K. (1976) Stranded on the Middle Ground? Reflections on Circumstances and Policies. London: Centre for Policy Studies.
27.
Kangasharju, A. and Pekkala, S. (2002) The role of education in self-employment success in Finland, Growth and Change, 33(2), pp. 216-237.
28.
Keat, R. and Abercrombie, N. (1990) Enterprise Culture. London: Routledge .
29.
Keeble, D. and Walker, S. (1994) New firms, small firms, and dead firms: spatial patterns and determinants in the United Kingdom, Regional Studies, 28(4), pp. 411-428.
30.
Keeble, D., Bryson, J. and Wood, P. (1992) The rise and role of small business service firms in the United Kingdom, International Small Business Journal , 11(1), pp. 11-22.
31.
Lee, D.Y. and Tsang, E.W.K. (2001) The effect of entrepreneurial personality, background and network activities on venture growth, Journal of Management Studies, 38(4), pp. 590-602.
32.
Lundstrom, A. and Stevenson, L. (2002) On the Road to Entrepreneurship Policy. Stockholm: Swedish Foundation for Small Business Research .
33.
McDonald, R. and Coffield, F. (1991) Risky Business? Youth and the Enterprise Culture . London: Falmer Press.
34.
de Meza, D. (2002) Overlending, Economic Journal, 112, pp. F17-F31.
35.
de Meza, D. and Southey, C. (1996), The borrowers curse: optimism, finance and entrepreneurship , Economic Journal, 109, pp.153-163.
36.
Murphy, G.B., Trailer, J.W. and Hill, R.C. (1996) Measuring performance in entrepreneurship, Journal of Business Research, 36, pp. 15-23.
37.
Nicholls-Nixon, C.L., Cooper, A.C. and Wood, C.Y. (2001) Strategic experimentation: understanding change in performance in new ventures, Journal of Business Venturing , 15, pp.493-521.
38.
One Northeast (1999) Unlocking Our Potential. Newcastle: One NorthEast .
39.
Pfeiffer, F. and Rieze, F. (2000) Business start ups by the unemployed: an econometric analysis based on firm data, Labour Economics, 7(5), pp. 629-663.
40.
Pratten, C.F. (1971) Economies of Scale in Manufacturing Industry. Cambridge: Cambridge University Press.
41.
Ramachandran, V. and Shah, M.-K. (1999) Minority entrepreneurs and firm performance in sub-Saharan Africa, Journal of Development Studies, 36(2), pp. 71-87.
42.
Reid, G.C. and Smith, J.A. (2000) What makes a new business start-up successful? , Small Business Economics, 4(3), pp. 165-182.
43.
Robson, P.J.A. and Bennett, R.J. (2000) SME growth: the relationship with business advice and external collaboration, Small Business Economics, 15(3), pp. 193-208.
44.
Roper, S., Hart, M., Bramley, G. ET AL. (2001) Paradise gained? The business link tracker study. Paper presented at 24th ISBA National Small Firms Conference: Exploring the Frontiers of Small Business.
45.
Sapienza, H.J. and Grimm, C.M. (1997) Founder characteristics, start-up process and strategy/ structure variables as predictors of shortline railroad performance, Entrepreneurship Theory and Practice, Fall, pp. 5-23.
46.
Scarpetra, S., Hemmings, P., Tressel, T. and Woo, J. (2002) The role of policy and institutions for productivity and firm dynamics: evidence from micro and industry data. OECD Working Paper No. 329, OECD, Paris.
47.
Schutjens, V.A.J.M. and Wever, E. (2000) Determinants of new firm success, Papers in Regional Science, 79, pp. 135-159.
48.
Small Business Service (2003a) Small Business Service Plan. London: SBS.
49.
Small Business Service (2003b) A Comprehensive Strategy for Start-ups. London: SBS.
50.
Storey, D.J. (1982) Entrepreneurship and the New Firm. London: Croom Helm.
51.
Storey, D.J. (1985) Manufacturing employment change in northern England 1965-78: the role of small businesses, in: D. J. Storey (Ed.) Small Firms in Regional Economic Development , pp. 6-42. Cambridge: Cambridge University Press.
52.
Storey, D.J. (1994a) The role of legal status in influencing bank financing and new firm growth, Applied Economics, 26, pp. 129-136.
53.
Storey, D.J. (1994b) Understanding the Small Business Sector. London: Routledge.
54.
Storey, D.J. and Strange, A. (1993) Entrepreneurship in Cleveland 1979-1989: a study of the effect of the enterprise culture. Employment Department Research Series No. 3, January.
55.
Storey, D.J., Keasey, K., Watson, R. and Wynarczyk, P. (1987) The Performance of Small Firms. London: Croom Helm.
56.
Trade And Industry Select Committee (1996) Business Links, 5th report, HC302-I. London: HMSO.
57.
Weinzimmer, L.G., Nystron, P.C., and Freeman, S.J. (1998) Measuring organizational growth: issues, consequences and guidelines, Journal of Management, 24(2), pp. 235-262.
58.
Weiss, L.W. (1976) Optimal plant scale and the extent of suboptimal capacity, in: R. T. Masson and P. D. Qualls (Eds) Essays on Industrial Organization in Honor of Joe S. Bain, pp. 126-134. Cambridge, MA: Ballinger.
59.
Westhead, P. (1995) Survival and employment growth contrasts between types of owner managed high technology firms, Entrepreneurship Theory and Practice, 20(1), pp. 5-28.
60.
Westhead, P. and Wright, M. (1998) Novice, portfolio and serial founders in rural and urban areas, Entrepreneurship Theory and Practice, 20(4), Summer, pp. 63-100.
