Advanced Search
MyIDEAS: Login to save this paper or follow this series

Ready, set, go! Why are some regions entrepreneurial jump-starters?

Contents:

Author Info

  • Michael Wyrwich

    ()
    (School of Economics and Business Administration, Friedrich-Schiller-University Jena)

Abstract

Previous research on market economies characterized by stable framework conditions shows that several regional factors determine start-up activity. Not much is known about what drives entrepreneurship in unstable environments characterized by significant institutional changes that affect the availability of entrepreneurial opportunities. To fill this gap, this paper focuses on post- communist regions in which start-up activity was basically nonexistent under socialism but significantly more in evidence after the institutional shock of introducing a market economy. It is argued and shown that the allocation of talent into productive entrepreneurship is higher in areas abundantly endowed with individuals who have a relatively high ability to detect viable entrepreneurial opportunities, as indicated by their qualification, and in regions home to a population that is characterized by a high alertness toward opportunities, as indicated by remnants of an entrepreneurial culture that pre- dates socialism. How institutional context affects entrepreneurship over the course of transition is reflected by the negative relationship between urbanization and entrepreneurship that presumably has to do with ill-devised socialist urban planning policies. The regional application of the theory on institutions and entrepreneurship outlined in this paper shows that an entrepreneurial rebound after an adverse large-scale shock accompanied by massive structural change and economic dislocation is most pronounced in areas with a strong human capital basis and a regional culture that favors entrepreneurship.

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://pubdb.wiwi.uni-jena.de/pdf/wp_2013_037.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2013-037.

as in new window
Length:
Date of creation: 19 Sep 2013
Date of revision:
Handle: RePEc:jrp:jrpwrp:2013-037

Contact details of provider:
Postal: Carl-Zeiss-Strasse 3, 07743 JENA
Phone: +049 3641/ 9 43000
Fax: +049 3641/ 9 43000
Web page: http://www.jenecon.de
More information through EDIRC

Related research

Keywords: Entrepreneurship; regional knowledge; transition;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. van Stel, A.J. & Suddle, K., 2005. "The Impact of New Firm Formation on Regional Development in the Netherlands," ERIM Report Series Research in Management, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasm ERS-2005-075-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
  2. Maryann P. Feldman & Johanna L. Francis, 2003. "Fortune Favours the Prepared Region: The Case of Entrepreneurship and the Capitol Region Biotechnology Cluster," European Planning Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 11(7), pages 765-788, October.
  3. Jurajda, Štepán & Terrell, Katherine, 2002. "Job Growth in Early Transition: Comparing Two Paths," IZA Discussion Papers 589, Institute for the Study of Labor (IZA).
  4. Henrekson, Magnus, 2007. "Entrepreneurship and Institutions," Working Paper Series, Research Institute of Industrial Economics 707, Research Institute of Industrial Economics.
  5. Richard Florida & Zoltan Acs & Sam Youl Lee, 2004. "Creativity and Entrepreneurship: A Regional Analysis of New Firm Formation," Papers on Entrepreneurship, Growth and Public Policy, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group 2004-17, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
  6. Minniti, Maria, 2005. "Entrepreneurship and network externalities," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 57(1), pages 1-27, May.
  7. Baumol, William J, 1990. "Entrepreneurship: Productive, Unproductive, and Destructive," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 98(5), pages 893-921, October.
  8. Michael Fritsch & Michael Wyrwich, 2012. "The Long Persistence of Regional Entrepreneurship Culture: Germany 1925 - 2005," Discussion Papers of DIW Berlin 1224, DIW Berlin, German Institute for Economic Research.
  9. Acs, Zoltan & Audrestch, David & Braunerhjelm, Pontus & Carlsson, Bo, 2007. "The Knowledge Spillover Theory of Entrepreneurship," Working Paper Series in Economics and Institutions of Innovation, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies 77, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  10. Edward L. Glaeser & Sari Pekkala Kerr & William R. Kerr, 2013. "Entrepreneurship And Urban Growth:An Empirical Assessment With Historical Mines," Working Papers 13-15, Center for Economic Studies, U.S. Census Bureau.
  11. Michael Fritsch & Pamela Mueller, 2005. "The Persistence of Regional New Business Formation-Activity over Time - Assessing the Potential of Policy Promotion Programs," Papers on Entrepreneurship, Growth and Public Policy, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group 2005-02, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
  12. Franz Barjak, 2001. "Regional Disparities in Transition Economies: A Typology for East Germany and Poland," Post-Communist Economies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 13(3), pages 289-311.
  13. Radosevic, Slavo, 1999. "Transformation of science and technology systems into systems of innovation in central and eastern Europe: the emerging patterns and determinants," Structural Change and Economic Dynamics, Elsevier, Elsevier, vol. 10(3-4), pages 277-320, December.
  14. Daniel Berkowitz & David DeJong, 2001. "Entrepreneurship and Post-Socialist Growth," William Davidson Institute Working Papers Series 406, William Davidson Institute at the University of Michigan.
  15. Srikanth Paruchuri & Paul Ingram, 2012. "Appetite for destruction: the impact of the September 11 attacks on business founding," Industrial and Corporate Change, Oxford University Press, vol. 21(1), pages 127-149, February.
  16. Yvonne Schindele, 2010. "How Long Does it Take to Become an Entrepreneurial Society - The Case of German Convergence in Self-Employment," Jena Economic Research Papers, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics 2010-015, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  17. Sjoerd Beugelsdijk, 2004. "Entrepreneurial Culture, Regional Innovativeness and Economic Growth," ERSA conference papers ersa04p210, European Regional Science Association.
  18. Michael Wyrwich, 2012. "Regional Entrepreneurial Heritage in a Socialist and a Postsocialist Economy," Economic Geography, Clark University, vol. 88(4), pages 423-445, October.
  19. Almus, Matthias & Engel, Dirk & Prantl, Susanne, 2000. "The Mannheim Foundation Panels of the Centre for European Economic Research (ZEW)," ZEW Dokumentationen 00-02, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  20. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 58(2), pages 277-97, April.
  21. Aidis, Ruta & van Praag, Mirjam, 2007. "Illegal entrepreneurship experience: Does it make a difference for business performance and motivation?," Journal of Business Venturing, Elsevier, vol. 22(2), pages 283-310, March.
  22. Parker,Simon C., 2009. "The Economics of Entrepreneurship," Cambridge Books, Cambridge University Press, Cambridge University Press, number 9780521728355.
  23. Zoltan J. Acs & Catherine Armington, 2004. "Employment Growth and Entrepreneurial Activity in Cities," Papers on Entrepreneurship, Growth and Public Policy, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group 2004-13, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
  24. Erik S. Reinert & Rainer Kattel & Margit Suurna, 2009. "Industrial Restructuring and Innovation Policy in Central and Eastern Europe since 1990," The Other Canon Foundation and Tallinn University of Technology Working Papers in Technology Governance and Economic Dynamics, TUT Ragnar Nurkse School of Innovation and Governance 23, TUT Ragnar Nurkse School of Innovation and Governance.
  25. Davidsson, Per & Honig, Benson, 2003. "The role of social and human capital among nascent entrepreneurs," Journal of Business Venturing, Elsevier, vol. 18(3), pages 301-331, May.
  26. Schumpeter, Joseph A., 1947. "The Creative Response in Economic History," The Journal of Economic History, Cambridge University Press, Cambridge University Press, vol. 7(02), pages 149-159, November.
  27. Feldman, Maryann P, 2001. "The Entrepreneurial Event Revisited: Firm Formation in a Regional Context," Industrial and Corporate Change, Oxford University Press, vol. 10(4), pages 861-91, December.
  28. Josep-Maria Arauzo-Carod & Mercedes Teruel-Carrizosa, 2005. "An Urban Approach to Firm Entry: The Effect of Urban Size," Growth and Change, Gatton College of Business and Economics, University of Kentucky, Gatton College of Business and Economics, University of Kentucky, vol. 36(4), pages 508-528.
  29. John McMillan & Christopher Woodruff, 2002. "The Central Role of Entrepreneurs in Transition Economies," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 16(3), pages 153-170, Summer.
  30. Wyrwich, Michael, 2013. "Can socioeconomic heritage produce a lost generation with regard to entrepreneurship?," Journal of Business Venturing, Elsevier, vol. 28(5), pages 667-682.
  31. Martin Andersson & Sierdjan Koster, 2011. "Sources of persistence in regional start-up rates--evidence from Sweden," Journal of Economic Geography, Oxford University Press, Oxford University Press, vol. 11(1), pages 179-201, January.
  32. Bönte, Werner & Falck, Oliver & Heblich, Stephan, 2009. "The impact of regional age structure on entrepreneurship," Munich Reprints in Economics, University of Munich, Department of Economics 20201, University of Munich, Department of Economics.
  33. Michael Fritsch, 2004. "Entrepreneurship, Entry and Performance of New Businesses Compared in two Growth Regimes: East and West Germany," Papers on Entrepreneurship, Growth and Public Policy, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group 2004-41, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
  34. Edward L. Glaeser, 2007. "Entrepreneurship and the City," NBER Working Papers 13551, National Bureau of Economic Research, Inc.
  35. Michael Fritsch & Oliver Falck, 2007. "New Business Formation by Industry over Space and Time: A Multidimensional Analysis," Regional Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 41(2), pages 157-172.
  36. Smallbone, David & Welter, Friederike, 2001. " The Distinctiveness of Entrepreneurship in Transition Economies," Small Business Economics, Springer, Springer, vol. 16(4), pages 249-62, June.
  37. Parker,Simon C., 2009. "The Economics of Entrepreneurship," Cambridge Books, Cambridge University Press, Cambridge University Press, number 9780521899604.
  38. Michael Wyrwich, 2011. "Regional Entrepreneurial Heritage in a Socialist and Post-socialist Economy," ERSA conference papers ersa10p495, European Regional Science Association.
  39. Westlund, Hans & Bolton, Roger, 2003. " Local Social Capital and Entrepreneurship," Small Business Economics, Springer, Springer, vol. 21(2), pages 77-113, September.
Full references (including those not matched with items on IDEAS)

Citations

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:jrp:jrpwrp:2013-037. 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: (Markus Pasche).

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.