Greene: does more mean worse? Three decades of enterprise policy in Tee Valley

Question

Answer 1

Answer 2

70's policy off
80's: start ups ( little impact on economic growth, increase in number of new firms lead to a fall in quality: its productivity that counts)
90's: business quality

Answer 3

Answer 4

First sea change: policy really changed in 1981, government encourages people, unemployed in particular, to start SE. EAS arose.
Second sea change: new business of EAS were short-lived, cycle of uncreative destruction. Cycle begin when EAS replaces local SE, as result of charging lower prices by subsidies, formal business owners now unemployed ans EAS subsidy them to start again, displacing original EAS. So clearly leads to increase in amount of SE, but net effect to country and taxpayer was neglectible.

Answer 5

the new firm foundation rate would be highter in 80s, then in either 70s or 90s
businesses founded in 80s will be of lower quality then in either 70s or 90s
founders of new firms who were previously unemployed are less likely to establish quality businesses

Answer 6

In 60s Government encouraged mergers to create firms with internationaly competitive economies of scale
End 60s, fear that disappearance of SE could lead to monopolies
there was an exponential increase in numer of UK government measures to assist SE
Led to Bolton Committe, which pointed to key competitive role that SE played in a dynamic economy.

Answer 7

80s firms that survived for at least 5 years, did have lower employment than those founded in 70s or 90s
So, for the longest surviving firms, and with the exception of one firm, H2 is supported