Subsidies for Job Creation: Is Small Best?

  title={Subsidies for Job Creation: Is Small Best?},
  author={Colin D Wren},
  journal={Small Business Economics},
Wisdom has it that direct financial assistance to small firms for employment creation may be poor use of resources since these firms have high failure rates. In this paper we identify another feature which works in the other direction, which suggests that small firms will be more responsive to assistance. This is related to these firms relatively poor access to private funds. Recent evidence is reported suggesting that proportionate grant assistance is more effective in small firms, but only in… CONTINUE READING