Determinants of entrepreneurship. Is it all about the individual or the region?
AbstractIt is well established at whatever spatial level studied that economic actors exhibit a strong tendency to cluster. Despite this fact many explanations to entrepreneurship only considers the personal characteristics of entrepreneurs. This is certainly not a satisfactory state-of-the-art. It is obvious that the influence of spatial factors must be considered carefully. In this pa¬per we illustrate empirically that variations in the rate of entrepreneurship are explained not only in terms of characteristics of entrepreneurs, such as education, sector of employment, occupation, experience and income but also by the characteristics of i) the localities where they worked before they became entrepreneurs, ii) the localities where they currently started their firm and iii) the regions where these localities are situated. The characteristics of locali¬ties include size, population density, firm density and type of locality (metropolitan, urban, semi-rural or rural). The estimations use a multi-level approach to decipher the how much of the variance that can be explained by the different levels (individual, locality and region). The data used in this study is micro-level data for Sweden provided by Statistics Sweden.
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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 338.
Length: 24 pages
Date of creation: 17 Dec 2013
Date of revision:
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More information through EDIRC
entrepreneurship; individual attributes; regional attributes; networks; micro-level; multi-level;
Find related papers by JEL classification:
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-12-29 (All new papers)
- NEP-ENT-2013-12-29 (Entrepreneurship)
- NEP-GEO-2013-12-29 (Economic Geography)
- NEP-URE-2013-12-29 (Urban & Real Estate Economics)
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