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Myth-busting and entrepreneurship policy: the case of high growth firms

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  • Ross Brown
  • Suzanne Mawson
  • Colin Mason

Abstract

Promoting high growth firms (HGFs) has become a strong fixation within enterprise policy. This is a debate article seeking to examine and challenge the mythology perpetuated by policy makers and embedded within high growth entrepreneurship policy frameworks. Within the article we argue that a number of distinctive ‘myths’ have become deeply embedded within these policy frameworks. Such myths have been built on misconceived preconceptions of HGFs, which has resulted in policy-makers taking a myopic view of these firms. A key aim of the paper is to highlight how false perceptions of HGFs translate into inappropriate policy interventions. The paper challenges some of the most commonly held myths about these firms (that they are predominantly young, small, high-tech, VC-backed, university spin-outs, who grow in an orderly organic fashion, operating similarly irrespective of location) and identifies a clear mismatch between how policy makers perceive HGFs and what they actually look like in reality. Suggestions for the design of future policy approaches are forwarded.

Suggested Citation

  • Ross Brown & Suzanne Mawson & Colin Mason, 2017. "Myth-busting and entrepreneurship policy: the case of high growth firms," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 29(5-6), pages 414-443, May.
    • Handle: RePEc:taf:entreg:v:29:y:2017:i:5-6:p:414-443
    DOI: 10.1080/08985626.2017.1291762
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    References listed on IDEAS

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    1. Greene, Francis, 2012. "Should the focus of publicly provided small business assistance be on start-ups or growth businesses?," Occasional Papers 12/2, Ministry of Economic Development, New Zealand.
    2. Decker, Ryan A. & Haltiwanger, John & Jarmin, Ron S. & Miranda, Javier, 2016. "Where has all the skewness gone? The decline in high-growth (young) firms in the U.S," European Economic Review, Elsevier, vol. 86(C), pages 4-23.
    3. Erik Stam & Kashifa Suddle & Jolanda Hessels & André van Stel, 2009. "High-Growth Entrepreneurs, Public Policies, and Economic Growth," International Studies in Entrepreneurship, in: Rui Baptista & Joao Leitao (ed.), Public Policies for Fostering Entrepreneurship, chapter 0, pages 91-110, Springer.
    4. Fabiana Moreno & Alex Coad, 2015. "High-Growth Firms: Stylized Facts and Conflicting Results," SPRU Working Paper Series 2015-05, SPRU - Science Policy Research Unit, University of Sussex Business School.
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