IDEAS home Printed from https://ideas.repec.org/a/kap/sbusec/v51y2018i3d10.1007_s11187-017-9946-7.html
   My bibliography  Save this article

Entrepreneurship and local economic resilience: the impact of institutional hysteresis in peripheral places

Author

Listed:
  • Cristian Gherhes

    (The University of Sheffield)

  • Tim Vorley

    (The University of Sheffield)

  • Nick Williams

    (The University of Leeds)

Abstract

This article examines how the legacies of the past in peripheral post-industrial places serve to shape current and future entrepreneurial activity, and with it local economic resilience. Drawing on in-depth qualitative interviews with key regional stakeholders, the article reveals how peripheral post-industrial places are constrained by their histories. This is found to be manifest in different ways, such as low aspirations, generational unemployment and a loss of identity which are in turn compounded by negative perceptions of place and opportunity. These issues culminate in institutional hysteresis at the local level and constrain entrepreneurial ambition. The article argues that the rigidity and reproduction of informal institutions continues to stymie economic resilience and growth. We conclude by reflecting on the implications for entrepreneurship in peripheral post-industrial places as well as with recommendations for policy.

Suggested Citation

  • Cristian Gherhes & Tim Vorley & Nick Williams, 2018. "Entrepreneurship and local economic resilience: the impact of institutional hysteresis in peripheral places," Small Business Economics, Springer, vol. 51(3), pages 577-590, October.
    • Handle: RePEc:kap:sbusec:v:51:y:2018:i:3:d:10.1007_s11187-017-9946-7
    DOI: 10.1007/s11187-017-9946-7
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11187-017-9946-7
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11187-017-9946-7?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Rod Cross & Hugh McNamara & Alexei Pokrovskii, 2012. "Memory of recessions," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 34(3), pages 413-430.
    2. Ben Gardiner & Ron Martin & Peter Sunley & Peter Tyler, 2013. "Spatially unbalanced growth in the British economy," Journal of Economic Geography, Oxford University Press, vol. 13(6), pages 889-928, November.
    3. Ray Hudson, 2005. "Rethinking Change in Old Industrial Regions: Reflecting on the Experiences of North East England," Environment and Planning A, , vol. 37(4), pages 581-596, April.
    4. Hermann Frank & Hans Landström, 2016. "What makes entrepreneurship research interesting? Reflections on strategies to overcome the rigour–relevance gap," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 28(1-2), pages 51-75, January.
    5. Estrin, Saul & Mickiewicz, Tomasz & Stephan, Ute, 2016. "Human capital in social and commercial entrepreneurship," Journal of Business Venturing, Elsevier, vol. 31(4), pages 449-467.
    6. José Amorós & Christian Felzensztein & Eli Gimmon, 2013. "Entrepreneurial opportunities in peripheral versus core regions in Chile," Small Business Economics, Springer, vol. 40(1), pages 119-139, January.
    7. Norin Arshed & Sara Carter & Colin Mason, 2014. "The ineffectiveness of entrepreneurship policy: is policy formulation to blame?," Small Business Economics, Springer, vol. 43(3), pages 639-659, October.
    8. André Stel & Kashifa Suddle, 2008. "The impact of new firm formation on regional development in the Netherlands," Small Business Economics, Springer, vol. 30(1), pages 31-47, January.
    9. Andy Pike & Stuart Dawley & John Tomaney, 2010. "Resilience, adaptation and adaptability," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 3(1), pages 59-70.
    10. Scott Shane, 2009. "Why encouraging more people to become entrepreneurs is bad public policy," Small Business Economics, Springer, vol. 33(2), pages 141-149, August.
    11. Rui Baptista & Murat Karaöz & Joana Mendonça, 2014. "The impact of human capital on the early success of necessity versus opportunity-based entrepreneurs," Small Business Economics, Springer, vol. 42(4), pages 831-847, April.
    12. Willem Salet & Federico Savini, 2015. "The political governance of urban peripheries," Environment and Planning C, , vol. 33(3), pages 448-456, June.
    13. Colin Mason & Ross Brown & Mark Hart & Michael Anyadike-Danes, 2015. "High growth firms, jobs and peripheral regions: the case of Scotland," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 8(2), pages 343-358.
    14. Minguzzi, Antonio & Passaro, Renato, 2001. "The network of relationships between the economic environment and the entrepreneurial culture in small firms," Journal of Business Venturing, Elsevier, vol. 16(2), pages 181-207, March.
    15. Dan Kaufmann & Miki Malul, 2015. "The Dynamic Brain Drain of Entrepreneurs in Peripheral Regions," European Planning Studies, Taylor & Francis Journals, vol. 23(7), pages 1345-1356, July.
    16. Michael E. Porter, 2000. "Location, Competition, and Economic Development: Local Clusters in a Global Economy," Economic Development Quarterly, , vol. 14(1), pages 15-34, February.
    17. Stuetzer, Michael & Obschonka, Martin & Audretsch, David B. & Wyrwich, Michael & Rentfrow, Peter J. & Coombes, Mike & Shaw-Taylor, Leigh & Satchell, Max, 2016. "Industry structure, entrepreneurship, and culture: An empirical analysis using historical coalfields," European Economic Review, Elsevier, vol. 86(C), pages 52-72.
    18. Stuart Dawley & Andy Pike & John Tomaney, 2010. "Towards the Resilient Region?," Local Economy, London South Bank University, vol. 25(8), pages 650-667, December.
    19. Ron Martin & Peter Sunley, 2003. "Deconstructing clusters: chaotic concept or policy panacea?," Journal of Economic Geography, Oxford University Press, vol. 3(1), pages 5-35, January.
    20. Susan Christopherson & Jonathan Michie & Peter Tyler, 2010. "Regional resilience: theoretical and empirical perspectives," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 3(1), pages 3-10.
    21. David Byrne, 2002. "Industrial culture in a post-industrial world: The case of the North East of England," City, Taylor & Francis Journals, vol. 6(3), pages 279-289, November.
    22. Pamela Mueller & André Stel & David Storey, 2008. "The effects of new firm formation on regional development over time: The case of Great Britain," Small Business Economics, Springer, vol. 30(1), pages 59-71, January.
    23. Patrick Biernacki & Dan Waldorf, 1981. "Snowball Sampling: Problems and Techniques of Chain Referral Sampling," Sociological Methods & Research, , vol. 10(2), pages 141-163, November.
    24. Ron Martin, 2012. "Regional economic resilience, hysteresis and recessionary shocks," Journal of Economic Geography, Oxford University Press, vol. 12(1), pages 1-32, January.
    25. Gillian Bristow & Adrian Healy, 2014. "Regional Resilience: An Agency Perspective," Regional Studies, Taylor & Francis Journals, vol. 48(5), pages 923-935, May.
    26. Mark Setterfield, 1993. "A Model of Institutional Hysteresis," Journal of Economic Issues, Taylor & Francis Journals, vol. 27(3), pages 755-774, September.
    27. Francis J. Greene & Kevin F. Mole & David J. Storey, 2004. "Does More Mean Worse? Three Decades of Enterprise Policy in the Tees Valley," Urban Studies, Urban Studies Journal Limited, vol. 41(7), pages 1207-1228, June.
    28. Ron Martin & Peter Sunley, 2006. "Path dependence and regional economic evolution," Journal of Economic Geography, Oxford University Press, vol. 6(4), pages 395-437, August.
    29. Christina Beatty & Stephen Fothergill & Ryan Powell, 2007. "Twenty Years on: Has the Economy of the UK Coalfields Recovered?," Environment and Planning A, , vol. 39(7), pages 1654-1675, July.
    30. David B. Audretsch & Martin Obschonka & Samuel D. Gosling & Jeff Potter, 2017. "A new perspective on entrepreneurial regions: linking cultural identity with latent and manifest entrepreneurship," Small Business Economics, Springer, vol. 48(3), pages 681-697, March.
    31. Ron Martin, 2010. "Roepke Lecture in Economic Geography—Rethinking Regional Path Dependence: Beyond Lock-in to Evolution," Economic Geography, Taylor & Francis Journals, vol. 86(1), pages 1-27, January.
    32. A. Fayolle & B. Gailly, 2015. "The Impact of Entrepreneurship Education on Entrepreneurial Attitudes and Intention: Hysteresis and Persistence," Post-Print halshs-00785012, HAL.
    33. Cross, Rod, 1993. "On the Foundations of Hysteresis in Economic Systems," Economics and Philosophy, Cambridge University Press, vol. 9(1), pages 53-74, April.
    34. Nick Williams & Tim Vorley, 2014. "Economic resilience and entrepreneurship: lessons from the Sheffield City Region," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 26(3-4), pages 257-281, May.
    35. Alistair R. Anderson, 2000. "Paradox in the periphery: an entrepreneurial reconstruction?," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 12(2), pages 91-109, April.
    36. Andrew G Ross & John Adams & Kenny Crossan, 2015. "Entrepreneurship and the spatial context: A panel data study into regional determinants of small growing firms in Scotland," Local Economy, London South Bank University, vol. 30(6), pages 672-688, September.
    37. Alain Fayolle & Benoît Gailly, 2015. "The Impact of Entrepreneurship Education on Entrepreneurial Attitudes and Intention : Hysteresis and Persistence," Post-Print hal-02312771, HAL.
    38. W.F. Lever, 1991. "Deindustrialisation and the Reality of the Post-industrial City," Urban Studies, Urban Studies Journal Limited, vol. 28(6), pages 983-999, December.
    39. Zoltan Acs & Sameeksha Desai & Jolanda Hessels, 2008. "Entrepreneurship, economic development and institutions," Small Business Economics, Springer, vol. 31(3), pages 219-234, October.
    40. Peter Ache, 2000. "Cities in Old Industrial Regions Between Local Innovative Milieu and Urban Governance—Reflections on City Region Governance," European Planning Studies, Taylor & Francis Journals, vol. 8(6), pages 693-709, December.
    41. Daniel Baumgartner & Marco Pütz & Irmi Seidl, 2013. "What Kind of Entrepreneurship Drives Regional Development in European Non-core Regions? A Literature Review on Empirical Entrepreneurship Research," European Planning Studies, Taylor & Francis Journals, vol. 21(8), pages 1095-1127, August.
    42. Harvey Johnstone & Doug Lionais, 2004. "Depleted communities and community business entrepreneurship: revaluing space through place," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 16(3), pages 217-233, May.
    43. repec:taf:entreg:v:23:y:2011:i:9-10:p:907-932 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Xiaohui Hu & Chun Yang, 2019. "Institutional change and divergent economic resilience: Path development of two resource-depleted cities in China," Urban Studies, Urban Studies Journal Limited, vol. 56(16), pages 3466-3485, December.
    2. Ross Brown & Ronald V Kalafsky & Suzanne Mawson & Lori Davies, 2020. "Shocks, uncertainty and regional resilience: The case of Brexit and Scottish SMEs," Local Economy, London South Bank University, vol. 35(7), pages 655-675, November.
    3. Elisabeth F. Mueller & Carola Jungwirth, 2022. "Are cooperative firms more agile? A contingency perspective on small and medium-sized enterprises in agglomerations and peripheral areas," Small Business Economics, Springer, vol. 58(1), pages 281-302, January.
    4. Gabriele Santoro & Antonio Messeni-Petruzzelli & Manlio Giudice, 2021. "Searching for resilience: the impact of employee-level and entrepreneur-level resilience on firm performance in small family firms," Small Business Economics, Springer, vol. 57(1), pages 455-471, June.
    5. Schlepphorst, Susanne & Welter, Friederike & Holz, Michael, 2022. "Die gesellschaftliche Wertschöpfung des Mittelstands," IfM-Materialien 292, Institut für Mittelstandsforschung (IfM) Bonn.
    6. Yun Qin & Jinlong Xu & Hexiong Zhang & Wenqin Ren, 2022. "The Measurement of the Urban–Rural Integration Level of Resource-Exhausted Cities—A Case Study of Zaozhuang City, China," Sustainability, MDPI, vol. 15(1), pages 1-18, December.
    7. Olena Khlystova & Yelena Kalyuzhnova, 2023. "The impact of the creative industries and digitalization on regional resilience and productive entrepreneurship," The Journal of Technology Transfer, Springer, vol. 48(5), pages 1654-1695, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mauricio Oyarzo & Gianni Romani & Miguel Atienza & Marcelo Lufin, 2015. "Spatio-temporal persistence of municipal rates of business start-ups in Chile," Documentos de Trabajo en Economia y Ciencia Regional 61, Universidad Catolica del Norte, Chile, Department of Economics, revised Jul 2015.
    2. Robert Hassink & Robert Hassink, 2017. "Advancing the Understanding of Regional Economic Adaptability in a Non-Western Context: An Introduction to the Special Issue," Growth and Change, Wiley Blackwell, vol. 48(2), pages 194-200, June.
    3. Xiaohui Hu & Robert Hassink, 2015. "Overcoming the Dualism between Adaptation and Adaptability in Regional Economic Resilience," Papers in Evolutionary Economic Geography (PEEG) 1533, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Sep 2015.
    4. Pierre-Alexandre Balland & David Rigby & Ron Boschma, 2015. "The technological resilience of US cities," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 8(2), pages 167-184.
    5. Xin Mai & Roger C. K. Chan, 2020. "Detecting the intellectual pathway of resilience thinking in urban and regional studies: A critical reflection on resilience literature," Growth and Change, Wiley Blackwell, vol. 51(3), pages 876-889, September.
    6. Piers Thompson & Wenyu Zang, 2018. "The foreign business and domestic enterprise relationship: Its implications for local entrepreneurial resilience," Local Economy, London South Bank University, vol. 33(1), pages 10-39, February.
    7. Jing Xiao & Ron Boschma & Martin Andersson, 2018. "Resilience in the European Union: the effect of the 2008 crisis on the ability of regions in Europe to develop new industrial specializations," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 27(1), pages 15-47.
    8. Silvia Rocchetta & Andrea Mina, 2019. "Technological coherence and the adaptive resilience of regional economies," Regional Studies, Taylor & Francis Journals, vol. 53(10), pages 1421-1434, October.
    9. Dolega, Les & Celińska-Janowicz, Dorota, 2015. "Retail resilience: A theoretical framework for understanding town centre dynamics," MPRA Paper 72319, University Library of Munich, Germany.
    10. Xiaohui Hu & Robert Hassink, 2017. "Exploring adaptation and adaptability in uneven economic resilience: a tale of two Chinese mining regions," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 10(3), pages 527-541.
    11. Ross Brown & Colin Mason, 2017. "Looking inside the spiky bits: a critical review and conceptualisation of entrepreneurial ecosystems," Small Business Economics, Springer, vol. 49(1), pages 11-30, June.
    12. Silvina A. Romano & Jon Mikel Zabala‐Iturriagagoitia, 2022. "Davids versus Goliaths: Epigenetic dynamics and structural change in the Swedish innovation system," Growth and Change, Wiley Blackwell, vol. 53(4), pages 1737-1761, December.
    13. Marina Capparucci & Emanuela Ghignoni & Alina Verashchagina & Natalia Vorozhbit, 2015. "The Drivers of Innovation in the Italian Manufacturing Sector," Economia & lavoro, Carocci editore, issue 3, pages 111-128.
    14. Vinko Muštra & Blanka Šimundić & Zvonimir Kuliš, 2020. "Does innovation matter for regional labour resilience? The case of EU regions," Regional Science Policy & Practice, Wiley Blackwell, vol. 12(5), pages 955-970, October.
    15. Paolo Di Caro, 2015. "Recessions, recoveries and regional resilience: evidence on Italy," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 8(2), pages 273-291.
    16. Kurikka, Heli & Grillitsch, Markus, 2020. "Resilience in the periphery: What an agency perspective can bring to the table," Papers in Innovation Studies 2020/7, Lund University, CIRCLE - Centre for Innovation Research.
    17. Elias Giannakis & Adriana Bruggeman, 2017. "Economic crisis and regional resilience: Evidence from Greece," Papers in Regional Science, Wiley Blackwell, vol. 96(3), pages 451-476, August.
    18. Fadil Sahiti, 2021. "Institutions and entrepreneurial activity: a comparative analysis of Kosovo and other economies," Journal of Entrepreneurship and Public Policy, Emerald Group Publishing Limited, vol. 10(1), pages 98-119, February.
    19. Michael Wyrwich & Michael Stuetzer & Rolf Sternberg, 2016. "Entrepreneurial role models, fear of failure, and institutional approval of entrepreneurship: a tale of two regions," Small Business Economics, Springer, vol. 46(3), pages 467-492, March.
    20. Mathieu P A Steijn & Pierre-Alexandre Balland & Ron Boschma & David L Rigby, 2023. "Technological diversification of U.S. cities during the great historical crises," Journal of Economic Geography, Oxford University Press, vol. 23(6), pages 1303-1344.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:sbusec:v:51:y:2018:i:3:d:10.1007_s11187-017-9946-7. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.