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The Role of Microenterprises in Economic Growth: A Panel Study of Wisconsin Counties 1977 to 1997

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  • Deller, Steven C.

    (U of Wisconsin)

Abstract

In this study I examine the role of microenterprises (firms with between one and four employees) in Wisconsin economic growth. Using a panel of Wisconsin counties from 1977 to 1997 I estimate an expanded Carlino-Mills type model of growth. Results suggest that nearly 50 percent of all businesses in Wisconsin are microenterprises and this share is relatively stable over time. Results also indicate that a higher percentage of businesses classified as microenterprises tend to be associated with counties with lower population levels, slower population growth, but higher levels of employment and income growth. Results also vary by type of industry. These results suggest that care must be taken when promoting microenterprises as a major engine of economic growth: results vary by measure of economic growth as well as type of industry.

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Bibliographic Info

Paper provided by University of Wisconsin, Agricultural and Applied Economics in its series Staff Paper Series with number 514.

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Date of creation: Sep 2007
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Handle: RePEc:ecl:wisagr:514

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Web page: http://www.aae.wisc.edu/pubs/sps/
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  1. Sherrill Shaffer, 2006. "Establishment Size and Local Employment Growth," Small Business Economics, Springer, vol. 26(5), pages 439-454, 06.
  2. Dunne, Timothy & Roberts, Mark J & Samuelson, Larry, 1989. "The Growth and Failure of U.S. Manufacturing Plants," The Quarterly Journal of Economics, MIT Press, vol. 104(4), pages 671-98, November.
  3. Boarnet, Marlon G. & Chalermpong, Saksith & Geho, Elizabeth, 2001. "Specification Issues in Models of Population and Employment Growth," University of California Transportation Center, Working Papers qt5fn0m74n, University of California Transportation Center.
  4. Ron Shaffer & Steve Deller & Dave Marcouiller, 2006. "Rethinking Community Economic Development," Economic Development Quarterly, , vol. 20(1), pages 59-74, February.
  5. Steven Deller & James McConnon, 2009. "Microenterprises and economic growth: a panel study of the US states 1977-1997," Applied Economics Letters, Taylor & Francis Journals, vol. 16(13), pages 1307-1312.
  6. Deller, Steven C. & Lledo, Victor, 2007. "Amenities and Rural Appalachia Economic Growth," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 36(1), April.
  7. Steven C. Deller & Tsung-Hsiu (Sue) Tsai & David W. Marcouiller & Donald B.K. English, 2001. "The Role of Amenities and Quality of Life In Rural Economic Growth," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(2), pages 352-365.
  8. Matteo Aquilina & Rainer Klump & Carlo Pietrobelli, 2006. "Factor Substitution, Average Firm Size and Economic Growth," Small Business Economics, Springer, vol. 26(3), pages 203-214, 04.
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Cited by:
  1. Mojica, Maribel N. & Gebremedhin, Tesfa G. & Schaeffer, Peter V., 2009. "An Empirical Analysis Of The Link Between Entrepreneurship And Economic Growth In West Virginia," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46723, Southern Agricultural Economics Association.

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