Creating good public policy to support high-growth firms

Colin Mason, Ross Brown

Research output: Contribution to journalArticle

170 Citations (Scopus)

Abstract

Writing in Small Business Economics Scott Shane argues that policy-makers should stop subsidising start-ups and instead focus on supporting the small subset of new businesses with high growth potential. However, both Shane and other scholarswho havemade the same argument only offer broad-brush proposals to achieve this objective. The aim of this article, in contrast, is to engage in a detailed discussion of how to create appropriate policies for high-growth firms (HGFs). Drawing on research in Scotland, we argue that policy-makers are looking for HGFs in the wrong places. The heterogeneous nature of HGFs in terms of sector, age, size and origins makes in impractical to target support on particular sectors, technologies or types of firms (e.g., new or R&D intensive). The article proposes a reorientation of HGFs, both in terms of
appropriate targeting and forms of support. Public policy also needs to focus on the retention of HGFs which are acquired by non-local businesses. Finally, policy-makers need to properly reflect upon the specificities of their entrepreneurial environment when
devising appropriate policy interventions.
LanguageEnglish
Pages211-225
Number of pages15
JournalSmall Business Economics
Volume40
Issue number2
Early online date27 Sep 2011
DOIs
Publication statusPublished - Feb 2013

Fingerprint

High-growth firms
Public policy
Politicians
Policy intervention
Economics
Specificity
Entrepreneurial environment
New firms
Targeting
New business
Small business
Scotland
Start-ups

Keywords

  • entrepreneurship
  • high-growth firms
  • gazelles
  • regional development
  • policy

Cite this

Mason, Colin ; Brown, Ross. / Creating good public policy to support high-growth firms. In: Small Business Economics. 2013 ; Vol. 40, No. 2. pp. 211-225.
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Creating good public policy to support high-growth firms. / Mason, Colin; Brown, Ross.

In: Small Business Economics, Vol. 40, No. 2, 02.2013, p. 211-225.

Research output: Contribution to journalArticle

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