Based on a model, the report outlines the impact of business start-ups on employment growth in Great Britain. Covering the 1980-1998 span, the data used were compiled for 60 British regions. Specific emphasis is put on short-term and long-term effects of the number of start-ups on regional employment creation. Besides, the above correlation is examined for various periods. The findings reveal that - compared to the Eighties - the significance of the number of starters as regards employment growth has risen during the Nineties.

André van Stel

David Storey

Shaastie Dielbandhoesing

Wilco Heuvel van den

Research Papers in Economics

English

1 We apply the ratio of 1981, for which year there are no missing data.

An Evolutionary Theory of Economic Change, Cambridge:

Business start-ups and closures: VAT registrations and de-registrations 1980-99,

Capitalism, Socialism and Democracy,

Cross national comparison of the role of SMEs in regional economic growth in the European Community,

Does Entrepreneurship Reduce Unemployment? Discussion paper TI01-074/3,

Economic Development and Business Ownership: an analysis using data of 23 OECD countries in the period 1976-1996,

Entrepreneurial Revolving Door Routinized Downsizing Row Total

Growth Regimes over Time and Space, Regional Studies,

H9301 The intertemporal stability of the concentration-margins relationship in

Kleinschalig Ondernemen 1994, Deel 2: Regionaal-economische Dynamiek en Werkgelegenheidscreatie (in Dutch),

Linking Entrepreneurship and Economic Growth,

local government reorganisation 1995-98. c VTC = VAT Trade Classification. This is effectively SIC68.

New Firm Formation in the British Counties with Special Reference to Scotland,

On the Measurement of Entry Rates,

Promoting Business Start-ups: A New Strategic Formula; Stage 1: Progress Review; Final Report, Glasgow: The Fraser of Allander Institute for Research on the Scottish Economy,

Table A10: Transition matrix - business stock approach * Growth Regime in the 1990s No. of cases Row percentage

Table A11: Transition matrix - labour market approach * Growth Regime in the 1990s No. of cases Row percentage

Table A12: Classification in Growth Regimes according to the Business Stock Approach 1980s 1990s Entrepreneurial (above average startup rate and above average employment growth)

Table A13: Classification in Growth Regimes according to the Labour Market Approach 1980s 1990s Entrepreneurial Lancashire Lincolnshire Northamptonshire **

Table A1b: Available years and classification schemes in basic data files: employment a Period Available years Regional classification Sectoral classification 1980-1991 1981; ’84; ‘87; ’89; ‘91 pre-LGR b SIC80

Table A5: Illustration shift-share procedure; the case of Derbyshire, 1980-83 sector average startup rate 1980-83, per sector* employment share 1981, Derbyshire employment share

Table A9b: Characteristics of regional growth regimes in the 1990s - labour market approach * Growth Regime 1990s Regional Characteristics Entrepreneurial Revolving Door Routinized Downsizing average startup rate 1987-90 +

The Birth of New Firms – Does Unemployment Matter?

The Impact of Entrepreneurship on Economic Growth,

The Modern Industrial Revolution, Exit, and the Failure of Internal Control Systems,

The Second Industrial Divide: Possibilities for Prosperity,

The Theory of Economic Development,

THEORY OF GROWTH REGIMES The theory of growth regimes is derived from the theory of technological regimes (see for example Nelson and Winter

there is indeed some empirical support in the regression explaining employment change in the 1990s by (sector adjusted) startup rate in the 1980s: the estimated parameter is positive. The effect is not significant though.

Turbulence and Growth in West-Germany: A Comparison of Evidence by Regions and Industries,

Wennekers H9812 SICLASS: Forecasting the European enterprise sector by industry and size class; Niels Bosma and Ton Kwaak H9901 Scanning the Future of Entrepreneurship;

What is New about the New Economy:

Startup activity and employment growth in regions