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Infrastructure required, skill needed: Digital entrepreneurship in rural and urban areas

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  • Bergholz, Christian
  • Füner, Lena
  • Lubczyk, Moritz
  • Sternberg, Rolf
  • Bersch, Johannes

Abstract

In this paper, we study the spatial implications of digital entrepreneurship. Leveraging detailed micro-data on the universe of new venture formations in Germany between 2011 and 2018, we illustrate regional determinants of digital entrepreneurship. Unlike conventional entrepreneurship, digital entrepreneurship demonstrates sustained growth rates throughout this time period, highlighting the policy importance of understanding the drivers of digital ventures’ location choices. The key insight of our study is that digital entrepreneurship requires both digital infrastructure and highly-skilled human capital. If both are present, digital entrepreneurship can flourish in rural areas, even if digital venture formations generally concentrate in urban centers.

Suggested Citation

  • Bergholz, Christian & Füner, Lena & Lubczyk, Moritz & Sternberg, Rolf & Bersch, Johannes, 2024. "Infrastructure required, skill needed: Digital entrepreneurship in rural and urban areas," Journal of Business Venturing Insights, Elsevier, vol. 22(C).
    • Handle: RePEc:eee:jobuve:v:22:y:2024:i:c:s2352673424000404
    DOI: 10.1016/j.jbvi.2024.e00488
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    More about this item

    Keywords

    Digital entrepreneurship; Highly skilled; Rural regions; Urban regions; Digitalization;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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