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The Role of Microenterprises in Economic Growth: A Panel Study of Wisconsin Counties 1977 to 1997

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  • Deller, Steven C.

Abstract

In this study I examine the role of microenterprises (firms with between one and four employees) in Wisconsin economic growth. Using a panel of Wisconsin counties from 1977 to 1997 I estimate an expanded Carlino-Mills type model of growth. Results suggest that nearly 50 percent of all businesses in Wisconsin are microenterprises and this share is relatively stable over time. Results also indicate that a higher percentage of businesses classified as microenterprises tend to be associated with counties with lower population levels, slower population growth, but higher levels of employment and income growth. Results also vary by type of industry. These results suggest that care must be taken when promoting microenterprises as a major engine of economic growth: results vary by measure of economic growth as well as type of industry.

Suggested Citation

  • Deller, Steven C., 2007. "The Role of Microenterprises in Economic Growth: A Panel Study of Wisconsin Counties 1977 to 1997," Staff Papers 92140, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    • Handle: RePEc:ags:wisagr:92140
    DOI: 10.22004/ag.econ.92140
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    Cited by:

    1. Maribel Mojica & Tesfa Gebremedhin & Peter Schaeffer, 2009. "An Empirical Analysis of the Link between Entrepreneurship and Economic Growth in West Virginia," Working Papers Working Paper 2009-02, Regional Research Institute, West Virginia University.
    2. repec:rri:wpaper:200904 is not listed on IDEAS
    3. Maribel Mojica & Tesfa Gebremedhin & Peter Schaeffer, 2009. "A County-Level Assessment of Entrepreneurship and Economic Growth in Appalachia Using Simultaneous Equations," Working Papers Working Paper 2009-04, Regional Research Institute, West Virginia University.
    4. repec:rri:wpaper:200902 is not listed on IDEAS
    5. Maribel N. Mojica & Tesfa G. Gebremedhin & Peter V. Schaeffer, 2010. "A County-Level Assessment Of Entrepreneurship And Economic Development In Appalachia Using Simultaneous Equations," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 15(01), pages 3-18.

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