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Labour, the Enterprise Gap and the Red Queen

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  • James Derbyshire
  • Garry Haywood

Abstract

This paper shows that Labour's enterprise policy targeted a closure of the ‘enterprise gap’, which is a disparity in the number of enterprises per 10,000 of the resident adult population in less prosperous compared with wealthier regions. Labour's policy has assumed that this gap can be closed through an increase in startup rates in these less prosperous regions. The paper shows that while Labour has managed to deliver an improvement in start-up rates, this has not brought about a closure of the enterprise gap as they expected. It uses the Red Queen Effect as a metaphor to explore the reasons for Labour's failure to close the enterprise gap, concluding that the scale of the increase in start-up rates that would be necessary to begin closing the enterprise gap may be unrealistic.

Suggested Citation

  • James Derbyshire & Garry Haywood, 2010. "Labour, the Enterprise Gap and the Red Queen," Local Economy, London South Bank University, vol. 25(5-6), pages 494-509, August.
    • Handle: RePEc:sae:loceco:v:25:y:2010:i:5-6:p:494-509
    DOI: 10.1080/02690942.2010.525985
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    References listed on IDEAS

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    1. Francis J. Greene & Kevin F. Mole & David J. Storey, 2004. "Does More Mean Worse? Three Decades of Enterprise Policy in the Tees Valley," Urban Studies, Urban Studies Journal Limited, vol. 41(7), pages 1207-1228, June.
    2. Robert Bennett & Paul Robson, 2004. "Support Services for SMEs: Does the ‘Franchisee’ Make a Difference to the Business Link Offer?," Environment and Planning C, , vol. 22(6), pages 859-880, December.
    3. Robert Bennett & Paul Robson, 2003. "Changing Use of External Business Advice and Government Supports by SMEs in the 1990s," Regional Studies, Taylor & Francis Journals, vol. 37(8), pages 795-811.
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