Targeted Support for High-Growth Start-ups: Some Policy Issues

Launched in 1999/2000, the new high-growth start-up programme is part of a shift in small and medium-sized enterprise (SME) policy in the United Kingdom away from a narrow focus on supporting established businesses with growth potential, to include start-ups and other types of SME. In this context, the authors consider some of the policy issues surrounding the design, development, and implementation of the new programme, with the aid of results from in-depth research in the East Midlands region. After a brief description of the new enhanced support programme for high-growth start-ups, and the policy context in which it was introduced, the authors review the support needs of this type of business and how the new programme might contribute to addressing these. In the final section they consider some of the wider policy issues raised by the programme in terms of the extent to which: first, effective regional models can be developed to encourage widespread participation by appropriate private sector organisations; second, access to appropriate finance, including seedcorn and venture capital, can be increased for high-growth-potential start-ups; third, universities are able to contribute to the generation of new business activity and become integrated into regional business support infrastructures; and fourth, the enhanced support programme is tuned to the needs of the target group and is effectively delivered.