ABSTRACT
With the growth in unemployment in the late 1970s and early 1980s, policy makers have increasingly focused on the formation of entirely new businesses as a mechanism through which increased employment opportunities may be provided. In May 1979, the Queen’s Speech referred to the government’s intention to ‘stimulate the development of small businesses on which the creation of new jobs so heavily depends’1 (our italics; it is quite clear from other government statements that ‘development’ here includes ‘formation’). More recently, the Chancellor of the Exchequer, while discussing possible tax relief for industry, argued that ‘if there is any room for help and relief at all, it will be directed . . . at new business because that is where the jobs will come2
(our italics). Similar sentiments were expressed by the Chancellor in his budget speech of March 1981. Indeed, some of the measures announced then were designed to encourage not only the development of new business generally, but also the direct transition from unemployment to selfemployment.
