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Explaining Regional Variation in Business Births and Deaths: U.S. 1976-88


  • Reynolds, Paul D
  • Miller, Brenda
  • Maki, Wilbur R


Linear models are developed to determine the relative impact of 15 start-up processes on the annual regional birth rate of new business organizations for all industry sectors in the U.S. over 6 two-year periods. These stable linear models explained from 50-70 percent of the variation in regional firm birth and death rates up to 16 years into the future. Start-up processes that have the most impact involve regional economic diversity; population growth; greater personal wealth; presence of mid-career adults; low unemployment; and greater flexibility in employment relationships. There was a complete absence of any impact of regional variation associated with higher densities of customers, suppliers, workers, R&D resources; costs of production; or access to national transportation facilities. Copyright 1995 by Kluwer Academic Publishers

Suggested Citation

  • Reynolds, Paul D & Miller, Brenda & Maki, Wilbur R, 1995. "Explaining Regional Variation in Business Births and Deaths: U.S. 1976-88," Small Business Economics, Springer, vol. 7(5), pages 389-407, October.
  • Handle: RePEc:kap:sbusec:v:7:y:1995:i:5:p:389-407

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