Regional Bias in New Firm Formation in the UK
- Theories explaining regional differences in new firm formation rates are tested and, refining previous theory, a model is constructed. The major influences on new firm formation rates are found to be the regional proportions of manual workers and home ownership, and the change in the rate of regional unemployment in the preceding year. New firm formation rates are measured by new VAT registrations. The implications of these results for government small firm policy are discussed.
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