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Nowcasting Entrepreneurship: Urban Third Place versus the Creative Class

Author

Listed:
  • Li Fang

    (Department of Urban and Regional Planning, Florida State University, Tallahassee, FL 32308, USA)

  • Timothy Slaper

    (Kelley School of Business, Indiana University, Bloomington, IN 47405, USA)

Abstract

Researchers have long debated whether entrepreneurship policy should focus on place or people. In this paper, we extend the place-based versus people-based theories using contemporaneous and geographically granular web-user online activity data to predict a region’s proclivity for entrepreneurship. We compare two theoretical hypotheses: the urban third places—informal gathering locations—that facilitate social interaction and entrepreneurship, in contrast to the creative class which fosters entrepreneurial energy and opportunity in a region. Specifically, we assess whether business formation has a stronger statistical relationship with the browsing behavior of individuals visiting websites associated with third place locations—e.g., restaurants or bars—or the concentration of web browsing behavior associated with “the creative class”. Using U.S. county-level data, we find that both urban third places and the creative class can predict about 70% of the variations in regional business formation, with the creative class having a slight competitive edge.

Suggested Citation

  • Li Fang & Timothy Slaper, 2022. "Nowcasting Entrepreneurship: Urban Third Place versus the Creative Class," Sustainability, MDPI, vol. 14(2), pages 1-18, January.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:2:p:763-:d:722057
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    References listed on IDEAS

    as
    1. Xi Huang & Cathy Yang Liu, 2019. "Immigrant Entrepreneurship and Economic Development," Journal of the American Planning Association, Taylor & Francis Journals, vol. 85(4), pages 564-584, October.
    2. Michael Storper & Allen J. Scott, 2009. "Rethinking human capital, creativity and urban growth," Journal of Economic Geography, Oxford University Press, vol. 9(2), pages 147-167, March.
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