Facilitating regeneration through new enterprise creation

This paper undertakes a comparative study of intervention strategies and the resultant impact upon new enterprise creation in the UK and Hungary. Firstly, secondary data is used to compare and contrast the actions of, and support provided by, major employer organisations faced with the need to downsize and restructure in the light of changing economic circumstances. Parallels are drawn between the need to support the local economy in specific regions of the UK, which faced extreme recession following the decline of major industries and the need to support local economies in Hungary, which face an uncertain future, but new opportunities, following the liberalisation of economic policy. Secondly, the paper reports the results of interviews with entrepreneurs and owner-managers in both countries who have received and who are receiving support and assistance to establish, grow and develop new enterprises. For many this marks a significant transition from employment to self-employment and requires the acquisition of new skills and competences together with the acceptance of high levels of risk and exposure not previously experienced. Thirdly, the paper assesses the impact of changing relationships within the local economy. This is especially significant where newly established SMEs operate as sub-contractors to the supporting organisation which takes the opportunity to out-source services and/or production which was previously undertaken in-house. The paper concludes with specific recommendations concerning the role of facilitators in influencing attitudes towards entrepreneurship and actions, which may be undertaken to encourage regeneration through the creation of new enterprises.