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Birth of New Firms

Birth of New Firms. UK – No’s increased to 200,000 pa in 1980’s USA – 600,000 pa Rates are not uniform, vary according to: When (Temporal) Where (Spatial) Which Sector (Sectoral) . Temporal Factors Timing of New Firms. Levels of Unemployment Government Policies Profitability

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Birth of New Firms

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  1. Birth of New Firms • UK – No’s increased to 200,000 pa in 1980’s • USA – 600,000 pa • Rates are not uniform, vary according to: • When (Temporal) • Where (Spatial) • Which Sector (Sectoral)

  2. Temporal FactorsTiming of New Firms • Levels of Unemployment • Government Policies • Profitability • Interest rates • Personal savings and Assets • Consumer Expenditure • Structural Change

  3. Spatial FactorsWhere New Firms are Located • Population Growth • Unemployment • Wealth • Workforce Qualifications • Business Size • Housing • Local Government • Government Policy

  4. Business Sector • Economies of Scale • Product Differentiation • Capital Requirements • Switching Costs • Access to Distribution Channels • Cost Disadvantages • Learning Curve • Location

  5. Cont • Government Policy

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