How accurate are VAT registrations as a measure of entrepreneurship?: A spatial analysis of Scotland and its regions

Ross, Andrew G; Crossan, Kenny; Juleff, Linda

Abstract

Comparing VAT registration data with Scottish Clearing Bank Statistics on new start-up activity
we assess the extent to which VATregistration data reflect the general level of start-up activity in
the Scottish economy for the period 2002–2009. Findings reveal that VATregistration data underestimate
the general level of start-up activity by 39%. The data also reveal there is considerable
spatial variation in start-up activity across Scottish regions and the recent recession has affected
start-up activity irrespective of which measure is used. It is also clear, however, that the recession
has affected the general level of start-up activity to a far greater extent.

Citation

Ross, A. G., Crossan, K., & Juleff, L. (2012). How accurate are VAT registrations as a measure of entrepreneurship?: A spatial analysis of Scotland and its regions. Local Economy, 27(3), 279-296. https://doi.org/10.1177/0269094211434476

• Journal Article Type: Article
• Online Publication Date: Mar 21, 2012
• Publication Date: May 1, 2012
• Deposit Date: Feb 26, 2014
• Journal: Local Economy
• Print ISSN: 0269-0942
• Electronic ISSN: 1470-9325
• Publisher: Taylor & Francis
• Peer Reviewed: Peer Reviewed
• Volume: 27
• Issue: 3
• Pages: 279-296
• DOI: https://doi.org/10.1177/0269094211434476
• Keywords: entrepreneurship; new firm formation; Scotland; VAT registration
• Public URL: http://researchrepository.napier.ac.uk/id/eprint/6608
• Publisher URL: http://dx.doi.org/10.1177/0269094211434476