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Spring 2007

ISSN 0890-913X

Volume 22, Number 2

Categories: Finance | Spring 2007

State Fiscal Policy and Small Business Creation

Noel D. Campbell, University of Central Arkansas

Tammy M. Rogers, North Georgia College & State University

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JournalofPrivateEnterprise,SpecialIrate,VolumeXXII,Number2,Spring2007StateFiscalPolicyandSmallBusinessCreationNoelD.CampbellUniversityofCentralArkansasTammyM.RogersNorthGeorgiaCollege&StateUniversityPromotingentrepreneurshiphasemergedasasignificantpolicytoolforregionaleconomicgrowthandjobcreation(FriarandMeyer,2003;Laukkanen,2000;Rosa,Scott,andKlandt,1996).Indeed,Maillat(1998)arguesthateconomicdevelopmentpolicyhasshiftedtopromotingendogenouseconomicgrowthviaentrepreneurshipandawayfromcompetitivegrowthviaattractingbusinessesfromelsewhere.'Aftermorethanadecade,theevidenceisnotparticularlysanguineforthepropositionthatsmallbusinessformationleadstoeconomicgrowth.Wong,Ho,andAudo(2005)andFriarandMeyer(2003),amongothers,demonstratethatnewgrowthventures(asinAllen,1999)stimulateeconomies;butnewventuresingeneraldonot.Unfortunately,thesenewgrowthventuresarenotnecessarilythesortofbusinessestheindustrial/fiscalpolicyofthelast20yearshasfostered(FriarandMeyer,2003).Webelievethatpartofthereasonforthisdishearteningresultisthatresearchersstillhaveonlyanincompleteunderstandingoftherelationshipbetweenfiscalpoliciesandthebirthanddeathofbusinesses.Tohelpaddressthisissue,wetakeadvantageofthenaturalpolicyexperimentthatexistsamongtheU.S.states.Onastate-by-statebasis,westudybusinessestablishmentandbusinessfailureasitrelatesto'Evenso,neithertheliterature,norpolicymakershaveconsistentlydefinedthedifferencesortheoverlapbetweenentrepreneurshipandsmallbusinessformation.NoelD.CampbellandTammyM.Rogers119

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Title	State Fiscal Policy and Small Business Creation
Authors/Creators:	Noel D. Campbell, University of Central Arkansas Tammy M. Rogers, North Georgia College & State University
Year:	2007
Volume:	22
Number:	2
Pages:	119 - 136
Publisher:	The Association of Private Enterprise Education
ISSN:	0890-913X
Document Type:	Articles
Keywords:	Financial Policy, Fiscal policy, Entrepreneurship, Business, Economic development, Taxation, Economic Policy

Citation:
Campbell, Noel D.; Rogers, Tammy M. / 2007. "State Fiscal Policy and Small Business Creation." The Journal of Private Enterprise, 22(2): 119-136.