Creating good public policy to support high-growth firms

Mason, C. and Brown, R. (2013) Creating good public policy to support high-growth firms. Small Business Economics, 40(2), pp. 211-225. (doi:10.1007/s11187-011-9369-9)

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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 scholars who have made 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.

Item Type:Articles
Status:Published
Refereed:Yes
Glasgow Author(s) Enlighten ID:Mason, Professor Colin
Authors: Mason, C., and Brown, R.
College/School:College of Social Sciences > Adam Smith Business School > Management
Journal Name:Small Business Economics
Publisher:Springer
ISSN:0921-898X
ISSN (Online):1573-0913
Published Online:27 September 2011

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