Enterprise policymaking in the UK: prescribed approaches and day-to-day practice

Enterprise policy is the main mechanism used by governments to stimulate economic growth, employment and international competitiveness. It is an umbrella term used to describe a plethora of regulatory, fiscal and business support initiatives introduced to support the SME sector. The UK has substantially increased the number of enterprise policy initiatives over the past 30 years, but there are serious concerns about its effectiveness. Critics have suggested that the ineffectiveness of enterprise policy may be attributable to piecemeal policy-making, where a focus on specific initiatives has led over time to a reduction in the overall coherence of enterprise policy. This chapter describes the process of policy-making in the UK, drawing distinctions between the prescribed ‘textbook’ approach to policy-making and the day-to-day practices of policy-makers. While previous studies have explored the public-facing side of policy, its implementation and effectiveness, this chapter focuses on the ‘back-office’ processes of policy formulation. Four influences (legitimacy, actors, culture and power) evident within the policy-making process may undermine the coherence and consistency of enterprise policy.