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Determinants of Entrepreneurship and Small Business Activity: A Two-Stage Regression Analysis

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Author Info
Singh-Knights, Doolarie
Smith, Dennis
Budumuru, Yoganand
Abstract

We developed a theoretical model of state-level entrepreneurship activity, as measured independently by firm creation, patent applications and presence of 500Inc. firms. We estimated the roles of innovations, financial capital, state resources and entrepreneurial climate. The empirical results suggest all of these factors are important in explaining some measure of entrepreneurial activity. Most importantly, we find that there is no single set of variables most important in explaining the three different measures of entrepreneurial activity used in this analysis, that is, with the exception of entrepreneurial climate. The parameter estimate for entrepreneurial climate was significantly different from zero for all the measures of entrepreneurial activity used.

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Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2006 Annual meeting, July 23-26, Long Beach, CA with number 21447.

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Date of creation: 2006
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Handle: RePEc:ags:aaea06:21447

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Keywords: Financial Economics;

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  1. Jason Henderson, 2002. "Building the rural economy with high-growth entrepreneurs," Economic Review, Federal Reserve Bank of Kansas City, issue Q III, pages 45-70. [Downloadable!]
  2. William M. Gentry & R. Glenn Hubbard, 2000. "Tax Policy and Entrepreneurial Entry," American Economic Review, American Economic Association, vol. 90(2), pages 283-287, May. [Downloadable!] (restricted)
  3. Sam Youl Lee & Richard Florida & Zoltan Acs, 2004. "Creativity and Entrepreneurship: A Regional Analysis of New Firm Formation," Regional Studies, Taylor and Francis Journals, vol. 38(8), pages 879-891, January. [Downloadable!] (restricted)
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  4. Daniel Berkowitz & David N. DeJong, 2005. "Entrepreneurship and Post-socialist Growth," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 67(1), pages 25-46, 02. [Downloadable!] (restricted)
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