IDEAS home Printed from
   My bibliography  Save this paper

Home-Based Business: Exploring the Place Attachment of Entrepreneurs


  • Amanda Mackloet
  • Veronique A.J.M. Schutjens
  • Piet Korteweg


Entrepreneurship is crucial to a vital and thriving economy, even on the neighbourhood level. This fits into current urban planning policy in the Netherlands, which aims at combining housing and economic functions within neighborhoods. Since an increasing number of entrepreneurs start from home, this calls for insight in the combination of work and home. However, there is limited knowledge about the specific role of the dwelling in the decision to start a firm from home and to stay put. This explorative paper focuses on the use of the dwelling as location of a firm, both in the start-up phase and beyond in the firm life course, and its explanations. Our research questions are: what determines the decision to start a firm within the dwelling of the entrepreneur and its duration in time, and how does this relate to the propensity and decision to move? In our empirical analyses a combination of quantitative and qualitative research methods is used. We analyzed data from 130 questionnaires send out in April 2005 to young entrepreneurs who owned a firm in two Dutch urban neighborhoods. These questionnaires were followed by in-depth interviews with 10 entrepreneurs. We have found that most home based businesses did start from home and are strongly tied to the dwelling - and therefore the neighbourhood. Both firms with past growth in number of personnel and firms with growth aspirations do want to move relatively often. With respect to firm relocation and the personal propensity to move, housing characteristics as adapted dwellings, and owner-occupied, single family and large houses are important. With respect to future home-based business, to most firms breaking the work-home combination is not a realistic option. Household characteristics and more specifically the care of small children keeps entrepreneurs home-based. Also entrepreneurs who work almost full-time are relatively strong attached to their home, which may point to an explicit -and maybe also longlasting- choice for home-basedness. Economic policy should therefore foster start-ups within urban neighbourhoods, as many of them seem to be firmly anchored locally by attachment to their home.

Suggested Citation

  • Amanda Mackloet & Veronique A.J.M. Schutjens & Piet Korteweg, 2006. "Home-Based Business: Exploring the Place Attachment of Entrepreneurs," ERSA conference papers ersa06p694, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa06p694

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Philip McCann, 1995. "Rethinking the Economics of Location and Agglomeration," Urban Studies, Urban Studies Journal Limited, vol. 32(3), pages 563-577, April.
    2. Larry A. Sjaastad, 1970. "The Costs and Returns of Human Migration," Palgrave Macmillan Books, in: Harry W. Richardson (ed.), Regional Economics, chapter 9, pages 115-133, Palgrave Macmillan.
    3. Erik Louw, 2000. "The production of business sites in the Netherlands," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 91(1), pages 85-91, February.
    4. Matthew Gorton, 1999. "Spatial variations in markets served by UK-based small and medium-sized enterprises (SMEs)," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 11(1), pages 39-55, January.
    5. Figueiredo, Octavio & Guimaraes, Paulo, 1999. "Start-Ups Domestic Location Decisions, and the Entrepreneur's Geographical Origin," ERSA conference papers ersa99pa045, European Regional Science Association.
    6. Schutjens, Veronique & Stam, Erik, 2003. "The Evolution and Nature of Young Firm Networks: A Longitudinal Perspective," Small Business Economics, Springer, vol. 21(2), pages 115-134, September.
    7. Figueiredo, Octavio & Guimaraes, Paulo & Woodward, Douglas, 2002. "Home-field advantage: location decisions of Portuguese entrepreneurs," Journal of Urban Economics, Elsevier, vol. 52(2), pages 341-361, September.
    8. Jouke van Dijk & Piet H. Pellenbarg, 2000. "Firm relocation decisions in The Netherlands: An ordered logit approach," Papers in Regional Science, Springer;Regional Science Association International, vol. 79(2), pages 191-219.
    9. David N. Allen & David J. Hayward, 1990. "The Role of New Venture Formation/Entrepreneurship in Regional Economic Development: A Review," Economic Development Quarterly, , vol. 4(1), pages 55-63, February.
    10. Simon, Herbert A, 1979. "Rational Decision Making in Business Organizations," American Economic Review, American Economic Association, vol. 69(4), pages 493-513, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Erik Stam, 2006. "A process model of locational change in entrpreneurial firms: an evolutionary perspective," Chapters, in: Andreas Pyka & Horst Hanusch (ed.), Applied Evolutionary Economics and the Knowledge-based Economy, chapter 7, Edward Elgar Publishing.
    2. Miguel C. Manjon-Antolin & Josep Maria Arauzo-Carod, 2006. "Locations and Relocations: Modelling, Determinants, and Interrelations," ERSA conference papers ersa06p33, European Regional Science Association.
    3. John Sibley Butler & Rajiv Garg & Bryan Stephens, 2020. "Social Networks, Funding, and Regional Advantages in Technology Entrepreneurship: An Empirical Analysis," Information Systems Research, INFORMS, vol. 31(1), pages 198-216, March.
    4. In Hyeock (Ian) Lee, 2022. "Startups, relocation, and firm performance: a transaction cost economics perspective," Small Business Economics, Springer, vol. 58(1), pages 205-224, January.
    5. Dahl, Michael S. & Sorenson, Olav, 2010. "The migration of technical workers," Journal of Urban Economics, Elsevier, vol. 67(1), pages 33-45, January.
    6. Miguel Manjón-Antolín & Josep-Maria Arauzo-Carod, 2011. "Locations and relocations: determinants, modelling, and interrelations," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 47(1), pages 131-146, August.
    7. Conroy, Tessa & Deller, Steven & Tsvetkova, Alexandra, 2016. "Regional business climate and interstate manufacturing relocation decisions," Regional Science and Urban Economics, Elsevier, vol. 60(C), pages 155-168.
    8. Josep-Maria Arauzo-Carod & Miguel Manjón-Antolín, 2012. "(Optimal) spatial aggregation in the determinants of industrial location," Small Business Economics, Springer, vol. 39(3), pages 645-658, October.
    9. Jiang, Yonglei & Timmermans, Harry J.P. & Yu, Bin, 2018. "Relocation of manufacturing industry from the perspective of transport accessibility – An application of percolation theory," Transport Policy, Elsevier, vol. 63(C), pages 10-29.
    10. Kristin Kronenberg, 2013. "Firm relocations in the Netherlands: Why do firms move, and where do they go?," Papers in Regional Science, Wiley Blackwell, vol. 92(4), pages 691-713, November.
    11. Pascal Beckers & Bart Sleutjes, 2014. "Neighbourhood Spatial Order, the Local Economy and Firm Mobility in Urban Areas of the Netherlands," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 38(6), pages 2103-2122, November.
    12. Guido Buenstorf & Matthias Geissler & Stefan Krabel, 2016. "Locations of labor market entry by German university graduates: is (regional) beauty in the eye of the beholder?," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 36(1), pages 29-49, February.
    13. James Foreman-Peck & Tom Nicholls, 2015. "Inter-regional mobility of entrepreneurial SMEs," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(1), pages 57-87, January.
    14. Peng Wang & Xiaoyan Lin & Dajun Dai, 2017. "Spatiotemporal Agglomeration of Real-Estate Industry in Guangzhou, China," Sustainability, MDPI, vol. 9(8), pages 1-15, August.
    15. Francisco B. Galarza & Gabriella Wong, 2017. "The Impact of Price Information on Consumer Behavior: An Experiment," Working Papers 106, Peruvian Economic Association.
    16. Stephen Drinkwater, 2003. "Go West? Assessing the willingness to move from Central and Eastern European Countries," School of Economics Discussion Papers 0503, School of Economics, University of Surrey.
    17. Laila Touhami Morghem & Khawlah Ali Abdalla Spetan, 2020. "Determinants of International Migration: An Applied Study on Selected Arab Countries (1995-2017)," International Journal of Economics and Financial Issues, Econjournals, vol. 10(2), pages 6-19.
    18. Bertoli, Simone & Dequiedt, Vianney & Zenou, Yves, 2016. "Can selective immigration policies reduce migrants' quality?," Journal of Development Economics, Elsevier, vol. 119(C), pages 100-109.
    19. Castro, Luciano de & Galvao, Antonio F. & Kim, Jeong Yeol & Montes-Rojas, Gabriel & Olmo, Jose, 2022. "Experiments on portfolio selection: A comparison between quantile preferences and expected utility decision models," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 97(C).
    20. Ather Maqsood Ahmed & Ismail Sirageldin, 1993. "Socio-economic Determinants of Labour Mobility in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 32(2), pages 139-157.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa06p694. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Gunther Maier (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.