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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.

    (U of Wisconsin)

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 Paper Series 514, University of Wisconsin, Agricultural and Applied Economics.
    • Handle: RePEc:ecl:wisagr:514
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    References listed on IDEAS

    as
    1. Deller, Steven C. & Lledo, Victor, 2007. "Amenities and Rural Appalachia Economic Growth," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 36(1), pages 1-26, April.
    2. Marlon G. Boarnet & Saksith Chalermpong & Elizabeth Geho, 2005. "Specification issues in models of population and employment growth," Papers in Regional Science, Wiley Blackwell, vol. 84(1), pages 21-46, March.
    3. Steven Deller & James McConnon, 2009. "Microenterprises and economic growth: a panel study of the US states 1977-1997," Applied Economics Letters, Taylor & Francis Journals, vol. 16(13), pages 1307-1312.
    4. Steven C. Deller & Tsung-Hsiu (Sue) Tsai & David W. Marcouiller & Donald B.K. English, 2001. "The Role of Amenities and Quality of Life In Rural Economic Growth," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(2), pages 352-365.
    5. Shaffer, Sherrill, 2002. "Firm size and economic growth," Economics Letters, Elsevier, vol. 76(2), pages 195-203, July.
    6. Ron Shaffer & Steve Deller & Dave Marcouiller, 2006. "Rethinking Community Economic Development," Economic Development Quarterly, , vol. 20(1), pages 59-74, February.
    7. Timothy Dunne & Mark J. Roberts & Larry Samuelson, 1989. "The Growth and Failure of U. S. Manufacturing Plants," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 104(4), pages 671-698.
    8. Sherrill Shaffer, 2006. "Establishment Size and Local Employment Growth," Small Business Economics, Springer, vol. 26(5), pages 439-454, June.
    9. Matteo Aquilina & Rainer Klump & Carlo Pietrobelli, 2006. "Factor Substitution, Average Firm Size and Economic Growth," Small Business Economics, Springer, vol. 26(3), pages 203-214, April.
    10. Kilungu Nzaku & James O. Bukenya, 2005. "Examining The Relationship Between Quality Of Life Amenities And Economic Development In The Southeast Usa," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 17(2), pages 89-103, July.
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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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