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Public policies to enhance regional entrepreneurship: another programme failing to deliver?

Author

Listed:
  • Georgios Fotopoulos

    (University of Peloponnese
    University of Sheffield Management School)

  • David J. Storey

    (University of Sussex)

Abstract

This paper examines public policies aimed at enhancing entrepreneurship. Drawing upon both theory and prior empirical work, it formulates four tests of policy effectiveness and applies them to evaluate the Wales Entrepreneurship Action Plan (EAP). Apart from some short-lived, limited positive effects, we do not find the EAP reached its business formation targets and made no long-run progress towards Wales becoming more entrepreneurial. By analysing local authority districts in Wales and England, we find that the factors influencing changes in rank mobility in regional entrepreneurship were increases in human capital, in-migration, small firm presence, home ownership and population in the 55–64 age bracket. Importantly, it was regions with initially high wages that saw the greatest rise in entrepreneurship. If ‘more’ entrepreneurship is sought, it is these factors that merit attention rather than the use of public subsidies to directly raise business formation rates.

Suggested Citation

  • Georgios Fotopoulos & David J. Storey, 2019. "Public policies to enhance regional entrepreneurship: another programme failing to deliver?," Small Business Economics, Springer, vol. 53(1), pages 189-209, June.
    • Handle: RePEc:kap:sbusec:v:53:y:2019:i:1:d:10.1007_s11187-018-0021-9
    DOI: 10.1007/s11187-018-0021-9
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    2. Dimos Chatzinikolaou & Michail Demertzis & Charis Vlados, 2021. "European Entrepreneurship Reinforcement Policies in Macro, Meso, and Micro Terms for the Post-COVID-19 Era," Review of European Studies, Canadian Center of Science and Education, vol. 13(2), pages 1-39, June.
    3. Bellido, Héctor, 2020. "Análisis internacional de las decisiones emprendedoras: aspectos económicos, emocionales, saludables y familiares [International analysis of entrepreneurial decisions: economic, emotional, healthy ," MPRA Paper 104487, University Library of Munich, Germany.
    4. Luis Pedauga & Francisco Sáez & Blanca L. Delgado-Márquez, 2022. "Macroeconomic lockdown and SMEs: the impact of the COVID-19 pandemic in Spain," Small Business Economics, Springer, vol. 58(2), pages 665-688, February.
    5. Jon Mikel Zabala-Iturriagagoitia, 2022. "Fostering regional innovation, entrepreneurship and growth through public procurement," Small Business Economics, Springer, vol. 58(2), pages 1205-1222, February.
    6. Simon C. Parker & Thomas Åstebro & David B Audretsch & Robert Blackburn & Andrew Burke & Alex Coad & Marc Cowling & Per Davidsson & Michael Fritsch & Francis Greene & Paul D. Reynolds & Roy Thurik, 2024. "“Remembering David J Storey, a pioneer of the entrepreneurship field”," Small Business Economics, Springer, vol. 62(1), pages 1-21, January.
    7. David Urbano & David Audretsch & Sebastian Aparicio & Maria Noguera, 2020. "Does entrepreneurial activity matter for economic growth in developing countries? The role of the institutional environment," International Entrepreneurship and Management Journal, Springer, vol. 16(3), pages 1065-1099, September.
    8. Amit Das & Shobha S. Das, 2022. "E-Government and Entrepreneurship: Online Government Services and the Ease of Starting Business," Information Systems Frontiers, Springer, vol. 24(3), pages 1027-1039, June.
    9. Rolf Sternberg, 2022. "Entrepreneurship and geography—some thoughts about a complex relationship," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 69(3), pages 559-584, December.
    10. Fanjul, Ana P. & Herrera, Liliana & Munoz-Doyague, Maria F., 2023. "Fostering rural entrepreneurship: An ex-post analysis for Spanish municipalities," Technological Forecasting and Social Change, Elsevier, vol. 197(C).

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    More about this item

    Keywords

    Entrepreneurship; Enterprise policy; Regional development; Self-employment; Rank mobility;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • L53 - Industrial Organization - - Regulation and Industrial Policy - - - Enterprise Policy
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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