Should Government be Stimulating Start-ups? An Assessment of the Scope for Public Intervention in New Venture Formation

• DOI: 10.1068/c0436
• Publication Date: 2006-01-30T14:57:09Z
• Authors: Andrew Atherton
• Keywords: Planning and Development; Government intervention; Monitoring; Policy and Law; 330; name=Management; 05 social sciences; /dk/atira/pure/subjectarea/asjc/2300/2308; /dk/atira/pure/subjectarea/asjc/3300/3305; name=Geography; Business start-ups; N100 - Business studies; /dk/atira/pure/subjectarea/asjc/3300/3321; name=Environmental Science (miscellaneous); 0502 economics and business; name=Public Administration; L430 - Public policy; /dk/atira/pure/subjectarea/asjc/2300/2301

Although there is broad recognition amongst policymakers of the significance of new business start-ups to the economy, there is an ongoing debate in the research literature as to the feasibility and desirability of intervention at this stage of business development. Of particular concern is the extent to which government can target resources so that there is substantive additional impact arising from public intervention. Using the experiential ‘decision rules' of private investors, the author develops a broad framework for assessing the future potential of new ventures. Implications are considered for intermediaries working with all types of new venture prospect.