chapter  11
32 Pages

The regional impact of public policy towards small firms in the United Kingdom

Onesignificantissuewhichhaseitherbeen omittedorgivenonlycursoryattentionin evaluationsofnationalsmallfirmspolicyisits spatialoutcome.Thisisimportantbecauseithas increasinglybeenarguedthatthecapacityfor smallbusinessdevelopmentvariesacrosstheu~ space-economy.Thecasehasbeenputmost forcefullybyStorey(1982a),whohasconstructed anindexofregionalentrepreneurshipbasedon measuresoftheplant-sizestructure,industrymix, occupationalstructure,educationalattainment, wealthandmarketsizeofeachregionall importantfactorsthatareassociatedwith entrepreneurship.ThisindexhighlightstheSouth Eastasthemostfavourableregionforsmall businessactivity,followedsomewaybehindbythe SouthWestandEastAnglia.Attheotherextreme, theNorth,Wales,NorthernIrelandandYorkshireHumbersideemergeastheregionswiththepoorest potentialforentrepreneurialactivity.Newfirm formationratesderivedfromVATregistration statistics(Ganguly1984,Whittington1984),the DepartmentofTradeandIndustry'sRecordof OpeningsandClosures(Pounce1981,Johnson1983) andindependently-constructedestablishment databanks(GouldandKeeble1984)eachconfirmthe existenceofspatialvariationsinbusiness start-upsthatarebroadlyinlinewithvariations inregionalentrepreneurialpotential.