Do more heavily regulated economies have poorer performing new ventures?: evidence from britain and spain

Do more heavily regulated economies have poorer performing new ventures?: evidence from britain and spain
Document type
Working Paper
Author(s)
Mole, Kevin; Greene, Francis; Storey, David
Publisher
Warwick Business School
Date of publication
1 April 2005
Series
Warwick Business School’s Small and Medium Sized Enterprise Centre Working Papers
Subject(s)
Small business & enterprise: the practicalities of running a small business and the theory of entrepreneurship, Management & leadership: including strategy, public sector management, operations and production
Collection
Business and management
Material type
Reports

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This paper examines new venture performance in two countries, Britain and Spain. Each has radically different regulatory environments: Britain is the fifth least regulated out of 85 countries, whereas Spain is in fifty-fifth place. Hypotheses are derived that suggest that in Spain there would be fewer start-ups, they would be larger at start and would grow more slowly than those in Britain. The key finding is that new ventures appear to be almost identical in both economies, both in terms of numbers and post start up performance. This questions attempts to ease bureaucratic burdens on the process of new venture start-up and growth.

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