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

Combination of regional characteristics for start-up activity in Switzerland

Contents:

Author Info

  • Franz Kronthaler

    ()

  • Katharina Becker
  • Kerstin Wagner
Registered author(s):

    Abstract

    Start-up activities are considered to be important for regional economic development which varies considerably between regions. As new firm formation and growth is strongly influenced by regional conditions, we analyse the role of regional conditions and their impact on start-up activities. In particular, this study assumes that the combination of the determinants, which are considered to have an impact on firm formations rates, influences regional start-up activity. To test this assumption the paper uses a two-step procedure, employing cluster analysis combined with non-parametric testing. Firstly, homogenous types of regions with regard to their structural characteristics conducive for entrepreneurial activities are formed with the help of cluster analysis. Secondly, Kruskal-Wallis test and Mann-Whitney test are used to find out whether the different types of regions with a specific composition of factors perform equally in new firm formation. The analysis is based on the spatial level of Swiss ‘mobilité spatiale’ regions (MS-regions). MS-regions are functional units based on economic interaction and commuting movements. The research strategy makes it possible to discuss whether different regional combinations of factors lead to high or low similar start-up rates within regions. The results show firstly that regions with an overall high potential, due to their factor endowment, have in fact high start-up rates, whereas regions with a low potential have low start-up rates. Furthermore, the results show secondly that the combination of factor endowments seems to be important as well. Completely different regional combinations of factors conducive for entrepreneurial activity can lead to similar high or low start-up rates. Hence, not only single factors shape firm formation rates in regions. It is also the combination and interrelationship of the various parameters which can be important for different types of regions. The findings of this study may have implications for policy makers in that they have not only the opportunity to influence single factors in order to increase the dynamics of entrepreneurial activity in their region. They need to focus on the region specific structure. It also means that other regions cannot easily be used as a benchmark. For regional policy, each region has to incorporate its own specific combination of factors conducive for new venture creation. Keywords: Regional Economics, Entrepreneurship, Business Formation JEL classification: R11, L26, R58

    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://www-sre.wu.ac.at/ersa/ersaconfs/ersa12/e120821aFinal00092.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa12p90.

    as in new window
    Length:
    Date of creation: Oct 2012
    Date of revision:
    Handle: RePEc:wiw:wiwrsa:ersa12p90

    Contact details of provider:
    Postal: Welthandelsplatz 1, 1020 Vienna, Austria
    Web page: http://www.ersa.org

    Related research

    Keywords:

    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. Adriaan J. van Stel & David J. Storey, 2004. "The link between firm births and job creation: Is there a Upas Tree effect?," Papers on Entrepreneurship, Growth and Public Policy 2004-33, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
    2. Parker,Simon C., 2006. "The Economics of Self-Employment and Entrepreneurship," Cambridge Books, Cambridge University Press, number 9780521030632, April.
    3. David B. Audretsch & Oliver Falck & Maryann P. Feldman & Stephan Heblich, 2012. "Local Entrepreneurship in Context," Regional Studies, Taylor & Francis Journals, vol. 46(3), pages 379-389, April.
    4. Blanchflower, David G. & Oswald, Andrew J., 2007. "What Makes a Young Entrepreneur?," IZA Discussion Papers 3139, Institute for the Study of Labor (IZA).
    5. Heiko Bergmann & Rolf Sternberg, 2007. "The Changing Face of Entrepreneurship in Germany," Small Business Economics, Springer, vol. 28(2), pages 205-221, March.
    6. Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
    7. Fritsch, Michael & Mueller, Pamela, 2006. "The effect of new business formation on regional development over time: the case of Germany," Freiberg Working Papers 2006,13, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.
    8. P. Mueller, 2006. "Entrepreneurship in the Region: Breeding Ground for Nascent Entrepreneurs?," Small Business Economics, Springer, vol. 27(1), pages 41-58, August.
    9. Sam Youl Lee & Richard Florida & Zoltan Acs, 2004. "Creativity and Entrepreneurship: A Regional Analysis of New Firm Formation," Regional Studies, Taylor & Francis Journals, vol. 38(8), pages 879-891.
    10. David B. Audretsch & Max Keilbach, 2006. "Entrepreneurship, Growth and Restructuring," Papers on Entrepreneurship, Growth and Public Policy 2006-13, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
    11. Minniti, Maria, 2005. "Entrepreneurship and network externalities," Journal of Economic Behavior & Organization, Elsevier, vol. 57(1), pages 1-27, May.
    12. Christine Tamasy, 2006. "Determinants of regional entrepreneurship dynamics in contemporary Germany: A conceptual and empirical analysis," Regional Studies, Taylor & Francis Journals, vol. 40(4), pages 365-384.
    13. Heiko Bergmann, 2011. "Entrepreneurship disparities within Switzerland -- Do tax and language differences play a role?," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 23(7-8), pages 523-548, September.
    14. Yuko Aoyama, 2009. "Entrepreneurship and Regional Culture: The Case of Hamamatsu and Kyoto, Japan," Regional Studies, Taylor & Francis Journals, vol. 43(3), pages 495-512.
    15. Van Praag, C Mirjam & Van Ophem, Hans, 1995. "Determinants of Willingness and Opportunity to Start as an Entrepreneur," Kyklos, Wiley Blackwell, vol. 48(4), pages 513-40.
    16. Audretsch, David B. & Keilbach, Max C. & Lehmann, Erik E., 2006. "Entrepreneurship and Economic Growth," OUP Catalogue, Oxford University Press, number 9780195183511, 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:wiw:wiwrsa:ersa12p90. 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: (Gunther Maier).

    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.