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Regional Entrepreneurial Heritage in a Socialist and a Postsocialist Economy

  • Michael Wyrwich

This paper sheds light on regional differences of self-employment in a socialist economy on the eve of its transition toward a market economy and differences with regard to start-up activities after transition. It shows that regions with a long entrepreneurial tradition have higher self-employment rates than regions where these traditions played only a minor role before the introduction of a socialist centrally planned economy. These regions have also higher start-up rates after transition. It seems entirely likely that some regions have a certain entrepreneurial heritage that is an important resource embedded in the region. Even the introduction of socialism did not eradicate or reverse the geography of private sector activity. It is recommended that policy should stimulate and activate region-specific entrepreneurial potentials to attain a sustainable regional development.

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Article provided by Clark University in its journal Economic Geography.

Volume (Year): 88 (2012)
Issue (Month): 4 (October)
Pages: 423-445

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Handle: RePEc:bla:ecgeog:v:88:y:2012:i:4:p:423-445
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