Research and analysis

Enterprise Management Incentives scheme evaluation

This research evaluates the Enterprise Management Incentives scheme, examining how it is working for businesses, and its impact.

• From: HM Revenue & Customs
• Published: 18 June 2018

Documents

Evaluation of Enterprise Management Incentive Scheme

Ref: HMRC Research Report 493

PDF, 1.56 MB, 66 pages

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Evaluation of Enterprise Management Incentive Scheme - Appendix B

PDF, 950 KB, 20 pages

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Evaluation of Enterprise Management Incentive Scheme - Appendix C

PDF, 732 KB, 9 pages

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Details

Enterprise Management Incentives (EMI) allows small and medium enterprises (SMEs), particularly those with high risk or high growth, to offer tax-advantaged share options.

The economic case for the programme is underpinned by hypotheses that SMEs are disadvantaged in the labour market, which prevents them from competing for highly skilled staff and inhibits their growth.

The research aimed to determine the extent to which EMI assists participating SMEs with recruitment, retention, and growth.

The delivery of the evaluation was supported by a range of primary and secondary research including:

• a review of secondary literature and the analysis of microdata
• a telephone survey of 703 EMI users
• econometric analysis

The findings confirm the presence of the market failures that provide the economic rationale for the subsidies implicit in the EMI scheme.

Published 18 June 2018