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Explaining new firm creation in Europe from a spatial and time perspective: A multilevel analysis based upon data of individuals, regions and countries

Author

Listed:
  • Hundt, Christian
  • Sternberg, Rolf

Abstract

This paper seeks to better understand the significance of spatial context conditions and personal attributes for early†stage entrepreneurship. We combine individual with regional and national level data using multilevel analysis to test our hypotheses. We differentiate between two phases in the entrepreneurial process as well as between general and ambitious entrepreneurship. First, we show that both the national and the regional context significantly impact individual entrepreneurial activities. Second, individual level characteristics exert the greatest overall influence, but the direction of this influence is not stable. Third, the impact of the three levels varies across the different phases in the entrepreneurial process as well as between different types of start†ups. Fourth, we demonstrate that cross†level interactions between individual characteristics and spatial context factors are important in explaining entrepreneurial activities.

Suggested Citation

Handle: RePEc:eee:paresc:v:95:y:2016:i:2:p:223-258
DOI: 10.1111/pirs.12133
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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
  • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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