The Firm and the Region as Breeding Grounds for Entrepreneurs
AbstractThe present study carries out a mutli-level analysis of entrepeneurship by considering the choice of the individual to leave his job position to become self-employed. A comprehensive data-set matching the individual to his place of work allows controlling for the characteristics of both the firm and the region he worked in before starting his own firm. The results suggest that small firms spawn entrepreneurs more frequently and individuals working in larger regions that are characterized by larger local markets, higher accumulation of knowledge resources and higher population density are more likely to transcend into entrepreneurship. I also find evidence that people are more likely to select the path of self-employment in the face of weak local competition.
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Bibliographic InfoPaper provided by Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies in its series Working Paper Series in Economics and Institutions of Innovation with number 189.
Length: 40 pages
Date of creation: 26 Aug 2009
Date of revision:
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Entrepreneurship; self-employment; externalities;
Find related papers by JEL classification:
- D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
- O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
- R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-08-30 (All new papers)
- NEP-CSE-2009-08-30 (Economics of Strategic Management)
- NEP-ENT-2009-08-30 (Entrepreneurship)
- NEP-GEO-2009-08-30 (Economic Geography)
- NEP-LAB-2009-08-30 (Labour Economics)
- NEP-SBM-2009-08-30 (Small Business Management)
- NEP-URE-2009-08-30 (Urban & Real Estate Economics)
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