Geographical variation in the rate of formation of new manufacturing firms

Gudgin G. and Fothergill S. (1984) Geographical variation in the rate of formation of new manufacturing firms, Reg. Studies 18, 203–206. This paper examines the proposition advanced by Gould and Keeble in this issue of Regional Studies that in East Anglia geographical differences in company formation rates are strongly influenced by local proportions of non-manual employees. We conclude that the observed association may be influenced by the measure used to define formation rates, and that local employment in small firms is probably an influence of more general applicability. The fact that rural formation rates are commonly observed to be above those for urban areas is probably also partly a statistical artifact caused by an inappropriate measure of the formation rate.