This paper addresses the second of the six objectives in the SBS Terms of Reference, namely "to identify key market sectors where there is a significant SME presence and, as far as is possible, identify the nature and the scale of SME involvement". Enterprise 'churn' is a factor that has been found to impact positively on labour productivity, and this may provide a general argument for encouraging and sustaining firm start-ups. The paper shows that churn is positively correlated with the rate of registration in each industry analysed.
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