New and young firms entrepreneurship policy and the role of government – evidence from the Federation of Small Businesses survey

D Pickernell, J Senyard, P Jones, G Packman, Elaine Ramsey

Research output: Contribution to journalArticle

29 Citations (Scopus)

Abstract

Purpose – The purpose of this paper is to investigate whether new and young firms are different from older firms. This analysis is undertaken to explore general characteristics, use of external resources and growth orientation. Design/methodology/approach – Data from the 2008 UK Federation of Small Businesses survey provided 8,000 responses. Quantitative analysis identified significantly different characteristics of firms from 0-4, 4-9, 9-19 and 20+ years. Factor analysis was utilised to identify the advice sets, finance and public procurement customers of greatest interest, with ANOVA used to statistically compare firms in the identified age groups with different growth aspirations. Findings – The findings reveal key differences between new, young and older firms in terms of characteristics including business sector, owner/manager age, education/business experience, legal status, intellectual property and trading performance. New and young firms were more able to access beneficial resources in terms of finance and advice from several sources. New and young firms were also able to more easily access government and external finance, as well as government advice, but less able to access public procurement. Research limitations/implications – New and young firms are utilising external networks to access several resources for development purposes, and this differs for older firms. This suggests that a more explicit age-differentiated focus is required for government policies aimed at supporting firm growth. Originality/value – The study provides important baseline data for future quantitative and qualitative studies focused on the impact of firm age and government policy.
LanguageEnglish
Pages358-382
JournalJournal of Small Business and Enterprise Development
Volume20
Issue number2
DOIs
Publication statusPublished - 2013

Fingerprint

Role of government
Entrepreneurship policy
Small business
Business survey
Federation
Resources
Public procurement
Finance
Government policy
Government
Owner-managers
Analysis of variance
Firm growth
Age groups
Firm age
Aspiration
Quantitative analysis
Business sector
Factor analysis
Business education

Cite this

@article{18113158b2fe47ca87af90b2469396da,
title = "New and young firms entrepreneurship policy and the role of government – evidence from the Federation of Small Businesses survey",
abstract = "Purpose – The purpose of this paper is to investigate whether new and young firms are different from older firms. This analysis is undertaken to explore general characteristics, use of external resources and growth orientation. Design/methodology/approach – Data from the 2008 UK Federation of Small Businesses survey provided 8,000 responses. Quantitative analysis identified significantly different characteristics of firms from 0-4, 4-9, 9-19 and 20+ years. Factor analysis was utilised to identify the advice sets, finance and public procurement customers of greatest interest, with ANOVA used to statistically compare firms in the identified age groups with different growth aspirations. Findings – The findings reveal key differences between new, young and older firms in terms of characteristics including business sector, owner/manager age, education/business experience, legal status, intellectual property and trading performance. New and young firms were more able to access beneficial resources in terms of finance and advice from several sources. New and young firms were also able to more easily access government and external finance, as well as government advice, but less able to access public procurement. Research limitations/implications – New and young firms are utilising external networks to access several resources for development purposes, and this differs for older firms. This suggests that a more explicit age-differentiated focus is required for government policies aimed at supporting firm growth. Originality/value – The study provides important baseline data for future quantitative and qualitative studies focused on the impact of firm age and government policy.",
author = "D Pickernell and J Senyard and P Jones and G Packman and Elaine Ramsey",
note = "Reference text: Acs, Z. (2008), “Foundations of high impact entrepreneurship”, Foundations and Trends in Entrepreneurship, Vol. 4 No. 6, pp. 535-620. Allen, K. and Stearns, T. (2004), “Technology entrepreneurs”, in Gartner, W.B., Shaver, K.G., Carter, N.M. and Reynolds, P.D. (Eds), Handbook of Entrepreneurial Dynamics: The Process of Business Creation, Sage Publications, Thousand Oaks, CA. Audretsch, D. (2004), “Sustaining innovation and growth: public policy support for entrepreneurship”, Industry and Innovation, Vol. 11 No. 3, pp. 167-191. Baker, T., Miner, A. and Eesley, D.T. (2003), “Improvising firms: bricolage, account giving and improvisational competencies in the founding process”, Research Policy, Vol. 32 No. 2, pp. 255-276. Barney, J.B. (1997), Gaining and Sustaining Competitive Advantage, Addison Wesley, Reading, MA. Barney, J.B. and Arikan, A.M. (2001), The Resource-based View: Origins and Implications, Blackwell, Oxford. Bennett, R. (1999), “Business associations: their potential contribution to government policy and the growth of small and medium-sized enterprises”, Environment and Planning C: Government and Policy, Vol. 17 No. 5, pp. 593-608. Bennett, R. (2008), “SME policy support in Britain since the 1990s: what have we learnt?”, Environment and Planning C: Government and Policy, Vol. 26 No. 2, pp. 375-397. Bennett, R. and Robson, P. (1999), “The use of external business advice by SMEs in Britain”, Entrepreneurship and Regional Development, Vol. 11 No. 2, pp. 155-180. Bennett, R. and Robson, P. (2003), “Changing use of external business advice and government supports by SMEs in the 1990s”, Regional Studies, Vol. 37 No. 8, pp. 795-811. BERR (2007), Annual Small Business Survey, Department for Business Enterprise and Regulatory Control and Institute for Employment Studies, London. BERR (2008), Annual Small Business Survey, Department for Business Enterprise and Regulatory Control and Institute for Employment Studies, London. Birch, D.L. (1987), Job Creation in America: How the Smallest Companies Put the Most People to Work, The Free Press, New York, NY. Bird, B. (1988), “Implementing entrepreneurial ideas: the case for intention”, Academy of Management Review, Vol. 13 No. 3, pp. 442-453. Borch, O., Huse, M. and Senneseth, K. (1999), “Resource configuration, competitive strategies, and corporate entrepreneurship: an empirical examination of small firms”, Entrepreneurship Theory and Practice, Vol. 24 No. 1, pp. 51-72. Brooksbank, D. (2008), “Small business policy and support”, Environment and Planning C: Government and Policy, Vol. 26 No. 2, pp. 287-291. Brush, C.G. and Chaganti, R. (1999), “Businesses without glamour? An analysis of resources on performance by size and age in small service and retail firms”, Journal of Business Venturing, Vol. 14 No. 3, pp. 233-257. Bru¨ derl, J. and Preisendo¨rfer, P. (1998), “Network support and the success of newly founded businesses”, Small Business Economics, Vol. 10 No. 3, pp. 213-225. JSBED 20,2 378 Carter, N.M., Gartner, W.B., Shaver, K.G. and Gatewood, E.J. (2003), “The career reasons of nascent entrepreneurs”, Journal of Business Venturing, Vol. 18 No. 1, pp. 13-29. Carter, S., Mason, C. and Tagg, S. (2009), “Perceptions and experience of employment regulation in UK small firms”, Environment and Planning C: Government and Policy, Vol. 27 No. 2, pp. 263-278. Chandler, G.N., Keller, C. and Lyon, D.W. (2000), “Unravelling the determinants and consequences of an innovation-supportive organizational culture”, Entrepreneurship Theory and Practice, Vol. 25 No. 1, pp. 59-76. Chrisman, J.J., McMullan, W.E. and Hall, J. (2005), “The influence of guided preparation on the long-term performance of new ventures”, Journal of Business Venturing, Vol. 20 No. 6, pp. 769-791. Christensen, C.M. (1997), The Innovator’s Dilemma, Harper Business, New York, NY. Cliff, J.E. (1998), “Does one size fit all? Exploring the relationship between attitudes towards growth, gender, and business size”, Journal of Business Venturing, Vol. 13 No. 6, pp. 523-542. Cooper, A.C. (1981), “Strategic management: new ventures and small business”, Long Range Planning, Vol. 14 No. 5, pp. 39-45. Cooper, A.C., Gimeno-Gascon, F.J. and Woo, C.Y. (1994), “Initial human and financial capital predictors of new venture performance”, Journal of Business Venturing, Vol. 9 No. 5, pp. 371-395. Cooper, R.G., Edgett, S.J. and Kleinschmidt, E.J. (2004), “Benchmarking best NPD practices II”, Research Technology Management, Vol. 47 No. 3, pp. 50-60. Corston, R. and Colman, A. (2000), A Crash Course in SPSS for Windows, Blackwell, Oxford. Covin, J.G. and Slevin, D.P. (1991), “A conceptual model of entrepreneurship as firm behavior”, Entrepreneurship Theory and Practice, Vol. 16 No. 1, pp. 7-25. Curran, J. and Storey, D.J. (2002), “Small business policy in the UK: the inheritance of the Small Business Service and implications for its future effectiveness”, Environment and Planning C: Government and Policy, Vol. 20 No. 2, pp. 163-177. Davidsson, P. (1991), “Continued entrepreneurship: ability, need, and opportunity as determinants of small firm growth”, Journal of Business Venturing, Vol. 6 No. 6, pp. 405-429. Davidsson, P. and Delmar, F. (1997), “High-growth firms and their contribution to employment: the case of Sweden 1987-96”, paper presented at OECD Working Party on SMEs, Organisation for Economic Co-operation and Development, Paris. Davidsson, P. and Honig, B. (2003), “The role of social and human capital among nascent entrepreneurs”, Journal of Business Venturing, Vol. 18 No. 3, pp. 301-331. Davidsson, P., Steffens, P.R., Gordon, S.R. and Reynolds, P. (2008), “Anatomy of new business activity in Australia: some early observations from the CAUSEE Project”, School of Management, Faculty of Business, Queensland University of Technology, Brisbane. Dennis, W.J. and Solomon, G. (2001), “Changes in intention to grow over time”, paper presented at the Babson/Kauffman Foundation Entrepreneurship Research Conference, Jo¨nko¨ping. Dollinger, M. (1995), Entrepreneurship: Strategies and Resources, Irwin, Boston, MA. Dutta, D. and Thornhill, S. (2008), “The evolution of growth intentions: toward a cognition-based model”, Journal of Business Venturing, Vol. 23 No. 3, pp. 307-332. Elder, J. and Georghiou, L. (2007), “Public procurement and innovation-resurrecting the demand side”, Research Policy, Vol. 36 No. 7, pp. 949-963. New and young firms 379 Federation of Small Businesses (2008), Lifting the Barriers to Growth in UK Small Businesses, Federation of Small Businesses, London. Fielden, S., Davidson, M. and Makin, P. (2000), “Barriers encountered during micro and small business start-up in North-West England”, Journal of Small Business and Enterprise Development, Vol. 7 No. 4, pp. 295-304. Global Entrepreneurship Monitor (2007), “Graduate entrepreneurship in the UK: summary report from GEM UK data”, NCGE Research Report 003/2006, National Council for Graduate Entrepreneurship, London, April. Granovetter, M. (1973), “The strength of weak ties”, American Journal of Sociology, Vol. 78 No. 6, pp. 1360-1380. Hair, J., Anderson, R., Tatham, R. and Black, W. (1998), Multivariate Data Analysis, Prentice Hall, Englewood Cliffs, NJ. Hanlon, D. and Saunders, C. (2007), “Marshalling resources to form small new ventures: toward a more holistic understanding of entrepreneurial support”, Entrepreneurship Theory and Practice, Vol. 31 No. 4, pp. 619-641. Heirman, A. and Clarysse, B. (2004), “How and why do research-based start-ups differ at founding? A resource-based configurational perspective”, Journal of Technology Transfer, Vol. 29 Nos 3/4, pp. 247-268. Henrekson, M. and Johansson, D. (2008), “Competencies and institutions fostering high-growth firms”, IFN Working Paper No. 758, Institutet fo¨r Na¨ringslivsforskning, Stockholm, pp. 1-57. Heydebreck, P., Klofsten, M. and Maier, J. (2002), “Innovation support for new technology-based firms: the Swedish Teknopol approach”, R&D Management, Vol. 30 No. 1, pp. 89-100. Huggins, R. and Williams, N. (2009), “Enterprise and public policy: a review of Labour government intervention in the UK”, Environment and Planning C: Government and Policy, Vol. 27 No. 1, pp. 19-41. Johnson, S., Webber, D.J. and Thomas, W. (2007), “Which SMEs use external business advice? A multivariate sub-regional study”, Environment and Planning A, Vol. 39 No. 8, pp. 1981-1997. Katz, J. and Gartner, W.B. (1988), “Properties of emerging organizations”, Academy of Management Review, Vol. 13 No. 3, pp. 429-441. Laschewski, L., Phillipson, J. and Gorton, M. (2002), “The facilitation and formalisation of small business networks: evidence from the North East of England”, Environment and Planning C: Government and Policy, Vol. 20 No. 3, pp. 375-391. Liao, J. and Welsch, H. (2004), “Start-up resources and entrepreneurial discontinuance: an empirical investigation of nascent entrepreneurs (summary)”, paper presented at the Babson College/Kauffman Foundation Entrepreneurship Research Conference, Glasgow. Loader, K. (2005), “Supporting SMEs through government purchasing activity”, International Journal of Entrepreneurship and Innovation, Vol. 6 No. 1, pp. 17-26. McQuaid, R.W. (2002), “Entrepreneurship and ICT industries: support from local and regional policies”, Regional Studies, Vol. 36 No. 8, pp. 909-919. Mason, C. (2009), “Policy as a focus for small business research”, Environment and Planning C: Government and Policy, Vol. 27 No. 2, pp. 191-194. Mason, C., Carter, S. and Tagg, S. (2006), “The effect of the national minimum wage on the UK small business sector: a geographical analysis”, Environment and Planning C: Government and Policy, Vol. 24 No. 1, pp. 99-116. JSBED 20,2 380 Mason, C., Carter, S. and Tagg, S. (2011), “Invisible businesses: the characteristics of home-based businesses in the UK”, Regional Studies, Vol. 45 No. 5, pp. 625-639. Massey, C. (2006), “A new conceptualisation of business development for SMEs: a focus on development potential”, Environment and Planning C: Government and Policy, Vol. 24 No. 1, pp. 37-49. Mole, K. (2002), “Street-level technocracy in UK small business support: Business Links, personal business advisers, and the Small Business Service”, Environment and Planning C: Government and Policy, Vol. 20 No. 2, pp. 179-194. Mole, K., Hart, M., Roper, S. and Saal, D. 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language = "English",
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New and young firms entrepreneurship policy and the role of government – evidence from the Federation of Small Businesses survey. / Pickernell, D; Senyard, J; Jones, P; Packman, G; Ramsey, Elaine.

Vol. 20, No. 2, 2013, p. 358-382.

Research output: Contribution to journalArticle

TY - JOUR

T1 - New and young firms entrepreneurship policy and the role of government – evidence from the Federation of Small Businesses survey

AU - Pickernell, D

AU - Senyard, J

AU - Jones, P

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N1 - Reference text: Acs, Z. (2008), “Foundations of high impact entrepreneurship”, Foundations and Trends in Entrepreneurship, Vol. 4 No. 6, pp. 535-620. Allen, K. and Stearns, T. (2004), “Technology entrepreneurs”, in Gartner, W.B., Shaver, K.G., Carter, N.M. and Reynolds, P.D. (Eds), Handbook of Entrepreneurial Dynamics: The Process of Business Creation, Sage Publications, Thousand Oaks, CA. Audretsch, D. (2004), “Sustaining innovation and growth: public policy support for entrepreneurship”, Industry and Innovation, Vol. 11 No. 3, pp. 167-191. Baker, T., Miner, A. and Eesley, D.T. (2003), “Improvising firms: bricolage, account giving and improvisational competencies in the founding process”, Research Policy, Vol. 32 No. 2, pp. 255-276. Barney, J.B. (1997), Gaining and Sustaining Competitive Advantage, Addison Wesley, Reading, MA. Barney, J.B. and Arikan, A.M. (2001), The Resource-based View: Origins and Implications, Blackwell, Oxford. Bennett, R. (1999), “Business associations: their potential contribution to government policy and the growth of small and medium-sized enterprises”, Environment and Planning C: Government and Policy, Vol. 17 No. 5, pp. 593-608. Bennett, R. (2008), “SME policy support in Britain since the 1990s: what have we learnt?”, Environment and Planning C: Government and Policy, Vol. 26 No. 2, pp. 375-397. Bennett, R. and Robson, P. (1999), “The use of external business advice by SMEs in Britain”, Entrepreneurship and Regional Development, Vol. 11 No. 2, pp. 155-180. Bennett, R. and Robson, P. (2003), “Changing use of external business advice and government supports by SMEs in the 1990s”, Regional Studies, Vol. 37 No. 8, pp. 795-811. BERR (2007), Annual Small Business Survey, Department for Business Enterprise and Regulatory Control and Institute for Employment Studies, London. BERR (2008), Annual Small Business Survey, Department for Business Enterprise and Regulatory Control and Institute for Employment Studies, London. Birch, D.L. (1987), Job Creation in America: How the Smallest Companies Put the Most People to Work, The Free Press, New York, NY. Bird, B. (1988), “Implementing entrepreneurial ideas: the case for intention”, Academy of Management Review, Vol. 13 No. 3, pp. 442-453. Borch, O., Huse, M. and Senneseth, K. (1999), “Resource configuration, competitive strategies, and corporate entrepreneurship: an empirical examination of small firms”, Entrepreneurship Theory and Practice, Vol. 24 No. 1, pp. 51-72. Brooksbank, D. (2008), “Small business policy and support”, Environment and Planning C: Government and Policy, Vol. 26 No. 2, pp. 287-291. Brush, C.G. and Chaganti, R. (1999), “Businesses without glamour? An analysis of resources on performance by size and age in small service and retail firms”, Journal of Business Venturing, Vol. 14 No. 3, pp. 233-257. Bru¨ derl, J. and Preisendo¨rfer, P. (1998), “Network support and the success of newly founded businesses”, Small Business Economics, Vol. 10 No. 3, pp. 213-225. JSBED 20,2 378 Carter, N.M., Gartner, W.B., Shaver, K.G. and Gatewood, E.J. (2003), “The career reasons of nascent entrepreneurs”, Journal of Business Venturing, Vol. 18 No. 1, pp. 13-29. Carter, S., Mason, C. and Tagg, S. (2009), “Perceptions and experience of employment regulation in UK small firms”, Environment and Planning C: Government and Policy, Vol. 27 No. 2, pp. 263-278. Chandler, G.N., Keller, C. and Lyon, D.W. (2000), “Unravelling the determinants and consequences of an innovation-supportive organizational culture”, Entrepreneurship Theory and Practice, Vol. 25 No. 1, pp. 59-76. Chrisman, J.J., McMullan, W.E. and Hall, J. (2005), “The influence of guided preparation on the long-term performance of new ventures”, Journal of Business Venturing, Vol. 20 No. 6, pp. 769-791. Christensen, C.M. (1997), The Innovator’s Dilemma, Harper Business, New York, NY. Cliff, J.E. (1998), “Does one size fit all? Exploring the relationship between attitudes towards growth, gender, and business size”, Journal of Business Venturing, Vol. 13 No. 6, pp. 523-542. Cooper, A.C. (1981), “Strategic management: new ventures and small business”, Long Range Planning, Vol. 14 No. 5, pp. 39-45. Cooper, A.C., Gimeno-Gascon, F.J. and Woo, C.Y. (1994), “Initial human and financial capital predictors of new venture performance”, Journal of Business Venturing, Vol. 9 No. 5, pp. 371-395. Cooper, R.G., Edgett, S.J. and Kleinschmidt, E.J. (2004), “Benchmarking best NPD practices II”, Research Technology Management, Vol. 47 No. 3, pp. 50-60. Corston, R. and Colman, A. (2000), A Crash Course in SPSS for Windows, Blackwell, Oxford. Covin, J.G. and Slevin, D.P. (1991), “A conceptual model of entrepreneurship as firm behavior”, Entrepreneurship Theory and Practice, Vol. 16 No. 1, pp. 7-25. Curran, J. and Storey, D.J. (2002), “Small business policy in the UK: the inheritance of the Small Business Service and implications for its future effectiveness”, Environment and Planning C: Government and Policy, Vol. 20 No. 2, pp. 163-177. Davidsson, P. (1991), “Continued entrepreneurship: ability, need, and opportunity as determinants of small firm growth”, Journal of Business Venturing, Vol. 6 No. 6, pp. 405-429. Davidsson, P. and Delmar, F. (1997), “High-growth firms and their contribution to employment: the case of Sweden 1987-96”, paper presented at OECD Working Party on SMEs, Organisation for Economic Co-operation and Development, Paris. Davidsson, P. and Honig, B. (2003), “The role of social and human capital among nascent entrepreneurs”, Journal of Business Venturing, Vol. 18 No. 3, pp. 301-331. Davidsson, P., Steffens, P.R., Gordon, S.R. and Reynolds, P. (2008), “Anatomy of new business activity in Australia: some early observations from the CAUSEE Project”, School of Management, Faculty of Business, Queensland University of Technology, Brisbane. Dennis, W.J. and Solomon, G. (2001), “Changes in intention to grow over time”, paper presented at the Babson/Kauffman Foundation Entrepreneurship Research Conference, Jo¨nko¨ping. Dollinger, M. (1995), Entrepreneurship: Strategies and Resources, Irwin, Boston, MA. Dutta, D. and Thornhill, S. (2008), “The evolution of growth intentions: toward a cognition-based model”, Journal of Business Venturing, Vol. 23 No. 3, pp. 307-332. Elder, J. and Georghiou, L. (2007), “Public procurement and innovation-resurrecting the demand side”, Research Policy, Vol. 36 No. 7, pp. 949-963. New and young firms 379 Federation of Small Businesses (2008), Lifting the Barriers to Growth in UK Small Businesses, Federation of Small Businesses, London. Fielden, S., Davidson, M. and Makin, P. (2000), “Barriers encountered during micro and small business start-up in North-West England”, Journal of Small Business and Enterprise Development, Vol. 7 No. 4, pp. 295-304. Global Entrepreneurship Monitor (2007), “Graduate entrepreneurship in the UK: summary report from GEM UK data”, NCGE Research Report 003/2006, National Council for Graduate Entrepreneurship, London, April. Granovetter, M. (1973), “The strength of weak ties”, American Journal of Sociology, Vol. 78 No. 6, pp. 1360-1380. Hair, J., Anderson, R., Tatham, R. and Black, W. (1998), Multivariate Data Analysis, Prentice Hall, Englewood Cliffs, NJ. Hanlon, D. and Saunders, C. (2007), “Marshalling resources to form small new ventures: toward a more holistic understanding of entrepreneurial support”, Entrepreneurship Theory and Practice, Vol. 31 No. 4, pp. 619-641. Heirman, A. and Clarysse, B. (2004), “How and why do research-based start-ups differ at founding? A resource-based configurational perspective”, Journal of Technology Transfer, Vol. 29 Nos 3/4, pp. 247-268. Henrekson, M. and Johansson, D. (2008), “Competencies and institutions fostering high-growth firms”, IFN Working Paper No. 758, Institutet fo¨r Na¨ringslivsforskning, Stockholm, pp. 1-57. Heydebreck, P., Klofsten, M. and Maier, J. (2002), “Innovation support for new technology-based firms: the Swedish Teknopol approach”, R&D Management, Vol. 30 No. 1, pp. 89-100. Huggins, R. and Williams, N. (2009), “Enterprise and public policy: a review of Labour government intervention in the UK”, Environment and Planning C: Government and Policy, Vol. 27 No. 1, pp. 19-41. Johnson, S., Webber, D.J. and Thomas, W. (2007), “Which SMEs use external business advice? A multivariate sub-regional study”, Environment and Planning A, Vol. 39 No. 8, pp. 1981-1997. Katz, J. and Gartner, W.B. (1988), “Properties of emerging organizations”, Academy of Management Review, Vol. 13 No. 3, pp. 429-441. Laschewski, L., Phillipson, J. and Gorton, M. (2002), “The facilitation and formalisation of small business networks: evidence from the North East of England”, Environment and Planning C: Government and Policy, Vol. 20 No. 3, pp. 375-391. Liao, J. and Welsch, H. (2004), “Start-up resources and entrepreneurial discontinuance: an empirical investigation of nascent entrepreneurs (summary)”, paper presented at the Babson College/Kauffman Foundation Entrepreneurship Research Conference, Glasgow. Loader, K. (2005), “Supporting SMEs through government purchasing activity”, International Journal of Entrepreneurship and Innovation, Vol. 6 No. 1, pp. 17-26. McQuaid, R.W. (2002), “Entrepreneurship and ICT industries: support from local and regional policies”, Regional Studies, Vol. 36 No. 8, pp. 909-919. Mason, C. (2009), “Policy as a focus for small business research”, Environment and Planning C: Government and Policy, Vol. 27 No. 2, pp. 191-194. Mason, C., Carter, S. and Tagg, S. (2006), “The effect of the national minimum wage on the UK small business sector: a geographical analysis”, Environment and Planning C: Government and Policy, Vol. 24 No. 1, pp. 99-116. JSBED 20,2 380 Mason, C., Carter, S. and Tagg, S. (2011), “Invisible businesses: the characteristics of home-based businesses in the UK”, Regional Studies, Vol. 45 No. 5, pp. 625-639. Massey, C. (2006), “A new conceptualisation of business development for SMEs: a focus on development potential”, Environment and Planning C: Government and Policy, Vol. 24 No. 1, pp. 37-49. Mole, K. (2002), “Street-level technocracy in UK small business support: Business Links, personal business advisers, and the Small Business Service”, Environment and Planning C: Government and Policy, Vol. 20 No. 2, pp. 179-194. Mole, K., Hart, M., Roper, S. and Saal, D. 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PY - 2013

Y1 - 2013

N2 - Purpose – The purpose of this paper is to investigate whether new and young firms are different from older firms. This analysis is undertaken to explore general characteristics, use of external resources and growth orientation. Design/methodology/approach – Data from the 2008 UK Federation of Small Businesses survey provided 8,000 responses. Quantitative analysis identified significantly different characteristics of firms from 0-4, 4-9, 9-19 and 20+ years. Factor analysis was utilised to identify the advice sets, finance and public procurement customers of greatest interest, with ANOVA used to statistically compare firms in the identified age groups with different growth aspirations. Findings – The findings reveal key differences between new, young and older firms in terms of characteristics including business sector, owner/manager age, education/business experience, legal status, intellectual property and trading performance. New and young firms were more able to access beneficial resources in terms of finance and advice from several sources. New and young firms were also able to more easily access government and external finance, as well as government advice, but less able to access public procurement. Research limitations/implications – New and young firms are utilising external networks to access several resources for development purposes, and this differs for older firms. This suggests that a more explicit age-differentiated focus is required for government policies aimed at supporting firm growth. Originality/value – The study provides important baseline data for future quantitative and qualitative studies focused on the impact of firm age and government policy.

AB - Purpose – The purpose of this paper is to investigate whether new and young firms are different from older firms. This analysis is undertaken to explore general characteristics, use of external resources and growth orientation. Design/methodology/approach – Data from the 2008 UK Federation of Small Businesses survey provided 8,000 responses. Quantitative analysis identified significantly different characteristics of firms from 0-4, 4-9, 9-19 and 20+ years. Factor analysis was utilised to identify the advice sets, finance and public procurement customers of greatest interest, with ANOVA used to statistically compare firms in the identified age groups with different growth aspirations. Findings – The findings reveal key differences between new, young and older firms in terms of characteristics including business sector, owner/manager age, education/business experience, legal status, intellectual property and trading performance. New and young firms were more able to access beneficial resources in terms of finance and advice from several sources. New and young firms were also able to more easily access government and external finance, as well as government advice, but less able to access public procurement. Research limitations/implications – New and young firms are utilising external networks to access several resources for development purposes, and this differs for older firms. This suggests that a more explicit age-differentiated focus is required for government policies aimed at supporting firm growth. Originality/value – The study provides important baseline data for future quantitative and qualitative studies focused on the impact of firm age and government policy.

U2 - 10.1108/14626001311326770

DO - 10.1108/14626001311326770

M3 - Article

VL - 20

SP - 358

EP - 382

IS - 2

ER -