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Regional Influences on the Prevalence of Family Versus Non-Family Start-Ups

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  • Bird, Miriam

    (Stockholm School of Economics)

  • Wennberg, Karl

    (Ratio and Stockholm School of Economics)

Abstract

We integrate insights from family business and organizational ecology into the entrepreneurship field by constructing a theoretical framework that explains how the regional context impacts family and non-family start-ups in differing ways. Regional count data models based on a rich longitudinal dataset reveal that while economic factors such as population size and growth in regions are primarily associated with the number of non-family start-ups, factors related to regional embeddedness, such as pre-existing small family businesses as well as favorable community attitudes toward small businesses, are more strongly associated with the number of family start-ups. Our research provides support for the notion that ‘the regional context’ is an important yet under-theorized area for research on venture creation and family business.

Suggested Citation

  • Bird, Miriam & Wennberg, Karl, 2013. "Regional Influences on the Prevalence of Family Versus Non-Family Start-Ups," Ratio Working Papers 212, The Ratio Institute.
  • Handle: RePEc:hhs:ratioi:0212
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    More about this item

    Keywords

    Family Business; Start-up; Population Ecology; Regional Science;
    All these keywords.

    JEL classification:

    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • 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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