Perceptions and Experience of Employment Regulation in UK Small Firms

Sara Carter, Colin Mason and Stephen Tagg
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Stephen Tagg: Department of Marketing, University of Strathclyde, Stenhouse Building, 173 Cathedral Street, Glasgow G4 ORQ, Scotland

Environment and Planning C, 2009, vol. 27, issue 2, 263-278

Abstract: The view that excessive regulation constrains small business growth has been a persistent theme within business and policy communities, although recent studies have demonstrated the actual effects of regulation to be relatively modest. A prior small-scale study proposed four reasons why employment legislation does “not damage†small firms. We attempt to assess the robustness of these propositions in a large-scale survey of 16 779 small firms. Results provide empirical support for three propositions. Firstly, perceived dissatisfaction masks actual effects. Secondly, competitive conditions mediate regulatory effects; however, even resource-constrained firms reported few negative effects. Thirdly, informality eases regulatory impact. Results failed to confirm that older laws are ‘routinised’. Length of time as a business owner was found to be more influential than age of regulation, with owners who have been in business for many years having a longer ‘window of exposure’ increasing their likelihood of experiencing negative and positive effects.

Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:sae:envirc:v:27:y:2009:i:2:p:263-278

DOI: 10.1068/c07106b

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