NEW FIRMS, SMALL FIRMS AND DEAD FIRMS - SPATIAL PATTERNS AND DETERMINANTS IN THE UNITED-KINGDOM

The paper analyses marked county-level spatial variations in new enterprise formation, growth in numbers of small businesses, and business failures in the UK 1980-90 as measured by VAT business registration and deregistration statistics. Multivariate econometric models for different periods and sectors are used to identify a range of key determinants, chosen from previous theoretical and survey research, notably previous population growth, capital availability through housing wealth, professional expertise, firm size structures, urban agglomeration advantages and dis-economies, and growing market demand. Some evidence is found for local enterprise culture, local government expenditure and enterprise agency effects, but not for unemployment-push processes. Policy implications are discussed.