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MANUFACTURING CLOSURES IN WALES 1980-84: A ROUTE TO NEW FIRM FORMA TION P. Westhead CAMBRIA Westhead P.G. 1988. Manufacturing closures in Wales, 1980-84 a route to new firm formation. Cambria, 15, 11-36. ISSN 0306-9796 ABSTRACT The influence of the 'push' factor of employment loss through manufacturing establishment closure on the new firm formation process is explored. Plant-related variables such as size, age, sector, corporate status and ownership type are particularly discussed. Both macro- and micro-analyses produce results which indicate that establishment closure and employment loss are a major local factor influencing local labour market oonditions. Closure is seen as both a 'supply' and a 'demand' factor and any description of an environment must place major emphasis on this variable. The new firm survey also indicates that many founders were 'pushed' into entrepreneurship and the characteristics of the founder's previous employer prior to start-up did have an influence on the formation process and the characteristics of the established new firms. AUTHOR'S ADDRESS Dr Paul Westhead, Cranfield Entrepreneurship Research Centre, Cranfield School of Management, Cranfield Institute of Technology, Cranfield, Bedford MK43 OAL, England. (Paper originally submitted June 1987 revised paper accepted August 1988) THE HYPOTHESISED RELATIONSHIP BETWEEN CLOSURE AND NEW FIRM FORMATION It has recently been argued that the recession of the early 1980s has caused some new businesses to be established which would not have otherwise have done so their founders have in effect been pushed into business. This paper will explore the influence of the 'push' factor of employment loss through establishment closure on the new firm formation process in Wales. Moreover, the emphasis in this paper will be on plant-related variables (notably size, age, sector, corporate status and ownership type) and little attention is paid to the establishment's wider environment (for example, labour market characteristics, land availability and accessibility to suppliers and markets) From the first it must be acknowledged that the