ENCOURAGING A MORE DYNAMIC START-UP MARKET

The main objective in encouraging a more dynamic start-up market is to boost productivity and economic growth by strengthening business support networks and creating an environment that encourages and supports entrepreneurial activity.The benefits of dynamic start-up market extend beyond the benefits to individual business. A dynamic start-up market is a key driver of economic growth. The creation and growth of new businesses contributes to the beneficial process of ‘productive churn’ by which more efficient and innovative businesses replace less efficient ones, with the effect of raising overall productivity growth within the economy.The purpose of this section is twofold:• To provide an overview of the evidence to explain why the government is putting in place a range of activities and actions to strengthen business support networks and create an environment which encourages and supports entrepreneurial activity.• To outline how the government will monitor success in achieving its objective and highlight the main gaps in the evidence base that will need to be filled if policy is to be further developed and improved.[...]