Advanced Search
MyIDEAS: Login to save this article or follow this journal

Regional determinants of entrepreneurial start-ups in a developing country

Contents:

Author Info

  • Wim Naudé
  • Thomas Gries
  • Eric Wood
  • Aloe Meintjies

Abstract

In this paper we use data from a developing country, South Africa, to empirically identify the determinants of start-up rates across different sub-national regions and in particular to investigate the role of access to finance on a regional (sub-national) level on start-ups. We find that the most important determinants of start-up rates across South Africa's magisterial districts are profit rates, educational levels, agglomeration as measured by the economic size of a district, and access to formal bank finance. Profits have by far the strongest effect on start-up rates. This, together with the insignificance of unemployment for start-ups, may imply that start-ups in South Africa are mainly opportunity-driven, as opposed to being necessity driven. It is also found that access to formal bank finance matter for regional start-up rates, which is not typical for a developing country and that market-size (agglomerations) is negatively associated with start-up rates in South Africa--an unexpected finding which may imply the existence of ‘congesting' factors such as increased competition, tougher barriers to entry, monopolistic behaviour, and a greater difficulty to be innovative and novel.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://hdl.handle.net/10.1080/08985620701631498
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Entrepreneurship & Regional Development.

Volume (Year): 20 (2008)
Issue (Month): 2 (March)
Pages: 111-124

as in new window
Handle: RePEc:taf:entreg:v:20:y:2008:i:2:p:111-124

Contact details of provider:
Web page: http://www.tandfonline.com/TEPN20

Order Information:
Web: http://www.tandfonline.com/pricing/journal/TEPN20

Related research

Keywords:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

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

Cited by:
  1. Claudia Álvarez & David Urbano & José Amorós, 2014. "GEM research: achievements and challenges," Small Business Economics, Springer, vol. 42(3), pages 445-465, March.
  2. Syed Awais Ahmad Tipu, 2012. "What have we learned? Themes from the literature on necessity driven entrepreneurship," World Review of Entrepreneurship, Management and Sustainable Development, Inderscience Enterprises Ltd, vol. 8(1), pages 70-91.
  3. Bosma, Niels, 2013. "The Global Entrepreneurship Monitor (GEM) and Its Impact on Entrepreneurship Research," Foundations and Trends(R) in Entrepreneurship, now publishers, vol. 9(2), pages 143-248, February.
  4. Gries Thomas & Naude Wim, 2011. "Entrepreneurship, Structural Change and a Global Economic Crisis," Entrepreneurship Research Journal, De Gruyter, vol. 1(3), pages 1-43, July.
  5. Calá, Carla Daniela & Manjón Antolín, Miguel C. & Arauzo Carod, Josep Maria, 2014. "The Determinants of Exit in Argentina: Core and Peripheral Regions," Working Papers 2072/225299, Universitat Rovira i Virgili, Department of Economics.
  6. José Ernesto Amoros & Niels Bosma & Jonathan Levie, 2011. "Ten Years of Global Entrepreneurship Monitor: Accomplishments and Prospects," Global Entrepreneurship Monitor Working Paper Series 1105, Global Entrepreneurship Research Association, revised Aug 2011.
  7. Naude, Wim & McGillivray, Mark & Rossouw, Stephanie, 2008. "Measuring the Vulnerability of Subnational Regions," Working Paper Series RP2008/54, World Institute for Development Economic Research (UNU-WIDER).
  8. Hannu Tervo & Hannu Niittykangas, 2011. "Self-employment transitions at older ages in different local labor markets," ERSA conference papers ersa11p764, European Regional Science Association.
  9. Naudé, Wim & Amorós, José Ernesto & Cristi, Oscar, 2013. ""Romanticizing Penniless Entrepreneurs?" The Relationship between Start-Ups and Human Wellbeing across Countries," IZA Discussion Papers 7547, Institute for the Study of Labor (IZA).
  10. Stephanié Rossouw & Don J. Webber, 2012. "Sub-national vulnerability and relative location: A case study of South Africa," Working Papers 2012-01, Auckland University of Technology, Department of Economics.
  11. Naudé, Wim & Matthee, Marianne, 2012. "Do Export Costs Matter in Determining Whether, When, and How Much African Firms Export?," Working Papers 38, JICA Research Institute.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:taf:entreg:v:20:y:2008:i:2:p:111-124. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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