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Determinants of entrepreneurship. Is it all about the individual or the region?

Author

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  • Backman, Mikaela

    () (Centre of Excellence for Science and Innovation Studies (CESIS), Jönköping International Business School, & Centre for Entrepreneurship and Spatial Economics (CEnSE))

  • Karlsson, Charlie

    () (CESIS - Centre of Excellence for Science and Innovation Studies, Jönköping International Business School)

Abstract

It is well established at whatever spatial level studied that economic actors exhibit a strong tendency to cluster. Despite this fact many explanations to entrepreneurship only considers the personal characteristics of entrepreneurs. This is certainly not a satisfactory state-of-the-art. It is obvious that the influence of spatial factors must be considered carefully. In this pa¬per we illustrate empirically that variations in the rate of entrepreneurship are explained not only in terms of characteristics of entrepreneurs, such as education, sector of employment, occupation, experience and income but also by the characteristics of i) the localities where they worked before they became entrepreneurs, ii) the localities where they currently started their firm and iii) the regions where these localities are situated. The characteristics of locali¬ties include size, population density, firm density and type of locality (metropolitan, urban, semi-rural or rural). The estimations use a multi-level approach to decipher the how much of the variance that can be explained by the different levels (individual, locality and region). The data used in this study is micro-level data for Sweden provided by Statistics Sweden.

Suggested Citation

  • Backman, Mikaela & Karlsson, Charlie, 2013. "Determinants of entrepreneurship. Is it all about the individual or the region?," Working Paper Series in Economics and Institutions of Innovation 338, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  • Handle: RePEc:hhs:cesisp:0338
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    References listed on IDEAS

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    1. Fritsch, Michael & Falck, Oliver, . "New firm formation by industry over space and time: a multi-level analysis for Germany," Chapters in Economics, University of Munich, Department of Economics.
    2. Acs,Zoltan J. & Armington,Catherine, 2011. "Entrepreneurship, Geography, and American Economic Growth," Cambridge Books, Cambridge University Press, number 9781107402539, March.
    3. Nicola Gennaioli & Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer, 2013. "Human Capital and Regional Development," The Quarterly Journal of Economics, Oxford University Press, vol. 128(1), pages 105-164.
    4. David G. Blanchflower, 2004. "Self-Employment: More may not be better," NBER Working Papers 10286, National Bureau of Economic Research, Inc.
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    6. Boden, Richard Jr., 1996. "Gender and self-employment selection: An empirical assessment," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 25(6), pages 671-682.
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    Citations

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    Cited by:

    1. Mikaela Backman & Charlie Karlsson, 2016. "Determinants of self-employment among commuters and non-commuters," Papers in Regional Science, Wiley Blackwell, vol. 95(4), pages 755-774, November.
    2. Nadine LEVRATTO, 2014. "Does firm creation depend on local context? A focus on the neighbouring effects," Working Papers 40, Réseau de Recherche sur l’Innovation. / Research Network on Innovation.

    More about this item

    Keywords

    entrepreneurship; individual attributes; regional attributes; networks; micro-level; multi-level;

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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