Promoting Equity Flows into Smaller Businesses

The UK Enterprise Investment Scheme and Venture Capital Trusts
Part of the International Studies in Entrepreneurship book series (ISEN, volume 22)


The availability of risk capital for high-potential, young companies has been a key policy issue for government in the context of promoting economic development via the growth of innovative (new knowledge-based) small- and medium-sized enterprises (SMEs)(Aho et al. 2006). Issues regarding the importance of risk capital to the early-growth stages of young companies have been debated widely in political and academic circles both in the UK and continental Europe (HM Treasury 1998, 2003; European Commission 2003, 2005, 2006a,b; Cressy and Olofsson 1997; Cressy 2002) since the 1980s. The US experience has provided an example and reference to watch. The conspicuous successes of new US companies that grow rapidly into positions of international dominance within the arena of new technologies and knowledge-based opportunities are widely admired.


Labor Productivity Venture Capital Profit Margin Fixed Asset Risk Capital 


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Copyright information

© Springer Science+Business Media, LLC 2009

Authors and Affiliations

  1. 1.Principal Economist, Institute for Employment StudiesUniversity of SussexBrightonUK
  2. 2.School of Business and EconomicsUniversity of Exeter, The Queen’s DriveBrightonUK
  3. 3.Institute for Employment StudiesMantell Building, University of Sussex CampusExeterUK

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