ABSTRACT

In Part Two, two separate explanations of new firm formation — or entrepreneurship as it has been called — were advanced. At the simplest level they describe the supply of, and the demand for, entrepreneur­ ship, with the number of new firms actually founded as the outcome of this interaction. This theory together with the evidence presented in Part Three enables us to review the implications of a policy designed to raise the rate of new firm formation in an economy, with specific reference to the UK. In this chapter the regional implications are exam­ ined and in the final chapter a review and assessment of central govern­ ment policies is presented.