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The Existence of Positive Psychological Environments and Their Impact on Regional Entrepreneurship

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  • Sutter, Ryan

Abstract

Studies of individual entrepreneurs consistently find that certain positive psychological traits are prevalent in entrepreneurial people and that these traits are particularly important determinants of an individual’s ability to recognize opportunities as well as their propensity to exploit them. This evidence, in conjunction with the stylized fact that entrepreneurial activ-ities are clustered in geographic space, leads to a few worthy questions. Are individuals that possess these traits heterogeneously distributed in geographic space? If so, does the distribu-tion of these characteristics represent the psychological environment of a place and does it have important influences on the amount of entrepreneurship occurring in it? In this paper, I seek to answer these questions in order to provide an appreciation of the relationship between psychological environments and regional entrepreneurship; using Bayesian Model Averaging. The results suggest that regional psychological environments vary considerably across geo-graphic space and that these differences indeed have important influences on the incidence of entrepreneurship.

Suggested Citation

  • Sutter, Ryan, 2008. "The Existence of Positive Psychological Environments and Their Impact on Regional Entrepreneurship," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 38(3), pages 1-14.
    • Handle: RePEc:ags:jrapmc:133005
    DOI: 10.22004/ag.econ.133005
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    Cited by:

    1. Frank M. Fossen & Thorsten Martin, 2016. "Entrepreneurial Spillovers over Space and Time," Discussion Papers of DIW Berlin 1618, DIW Berlin, German Institute for Economic Research.
    2. Fossen, Frank M. & Martin, Thorsten, 2018. "Entrepreneurial dynamics over space and time," Regional Science and Urban Economics, Elsevier, vol. 70(C), pages 204-214.

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