IDEAS home Printed from https://ideas.repec.org/p/wiw/wiwrsa/ersa11p327.html
   My bibliography  Save this paper

Economic Entrepreneurship, Startups and Their Effects on Local Development: The Case of Sweden

Author

Listed:
  • Hans Westlund
  • Amy Olsson

Abstract

The current empirical entrepreneurship literature mainly shows a positive correlation between entrepreneurship (measured as the number of startups) and economic growth. However, the mechanisms by which entrepreneurship exerts its positive influence are not obvious. The net result of startups on employment or GDP can be negative, at least in the short run, since efficient, new companies may lead to closures of less efficient ones. Based on an assumption that economic entrepreneurship in the form of startups creates unobserved supply side effects on the firm level (Fritsch & Mueller 2004) and entrepreneurial social capital on community level (Westlund & Bolton 2003) this paper studies the connections between startups and local development at the municipal level in Sweden between 2000 and 2008. We use a unique database including not only total startups, but data on startups divided in six branches to study the impact of entrepreneurship on population and employment growth. Analyses are performed on all municipalities as well as by municipality type and by growth rate.

Suggested Citation

  • Hans Westlund & Amy Olsson, 2011. "Economic Entrepreneurship, Startups and Their Effects on Local Development: The Case of Sweden," ERSA conference papers ersa11p327, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa11p327
    as

    Download full text from publisher

    File URL: https://www-sre.wu.ac.at/ersa/ersaconfs/ersa11/e110830aFinal00327.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Zoltan J. Acs & Catherine Armington, 2008. "Employment Growth and Entrepreneurial Activity in Cities," Chapters, in: Entrepreneurship, Growth and Public Policy, chapter 25, pages 353-369, Edward Elgar Publishing.
    2. Westlund, Hans & Bolton, Roger, 2003. "Local Social Capital and Entrepreneurship," Small Business Economics, Springer, vol. 21(2), pages 77-113, September.
    3. Martin Carree & A. R. Thurik (ed.), 2006. "Entrepreneurship and Economic Growth," Books, Edward Elgar Publishing, number 3673.
    4. Catherine Armington & Zoltan J. Acs, 2008. "The Determinants of Regional Variation in New Firm Formation," Chapters, in: Entrepreneurship, Growth and Public Policy, chapter 18, pages 224-243, Edward Elgar Publishing.
    5. Hans Westlund, 2006. "Social Capital in the Knowledge Economy," Advances in Spatial Science, Springer, number 978-3-540-35366-9.
    6. Wennekers, Sander & Thurik, Roy, 1999. "Linking Entrepreneurship and Economic Growth," Small Business Economics, Springer, vol. 13(1), pages 27-55, August.
    7. Hans Westlund, 2011. "Multidimensional entrepreneurship: theoretical considerations and Swedish empirics," Regional Science Policy & Practice, Wiley Blackwell, vol. 3(3), pages 199-218, August.
    8. Christine Tamasy, 2006. "Determinants of regional entrepreneurship dynamics in contemporary Germany: A conceptual and empirical analysis," Regional Studies, Taylor & Francis Journals, vol. 40(4), pages 365-384.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nebojša Stojčić & Ivan-Damir Anić & Tonći Svilokos, 2021. "The entrepreneurial gains from market integration in the new EU member states," Small Business Economics, Springer, vol. 57(3), pages 1-20, October.

    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. Hans Westlund & Johan P. Larsson & Amy Rader Olsson, 2014. "Start-ups and Local Entrepreneurial Social Capital in the Municipalities of Sweden," Regional Studies, Taylor & Francis Journals, vol. 48(6), pages 974-994, June.
    2. Niklas Elert, 2014. "What determines entry? Evidence from Sweden," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(1), pages 55-92, August.
    3. Kim, Younghwan & Kim, Wonjoon & Yang, Taeyong, 2012. "The effect of the triple helix system and habitat on regional entrepreneurship: Empirical evidence from the U.S," Research Policy, Elsevier, vol. 41(1), pages 154-166.
    4. Sjoerd Beugelsdijk, 2010. "Entrepreneurial Culture, Regional Innovativeness and Economic Growth," Springer Books, in: Andreas Freytag & Roy Thurik (ed.), Entrepreneurship and Culture, chapter 0, pages 129-154, Springer.
    5. Hans Westlund & Johan P. Larsson & Amy Olsson, 2012. "Startups and Local Social Capital in the Municipalities of Sweden," ERSA conference papers ersa12p91, European Regional Science Association.
    6. Marcus Dejardin, 2011. "Linking net entry to regional economic growth," Small Business Economics, Springer, vol. 36(4), pages 443-460, May.
    7. Fragoso, Rui Manuel de Sousa, 2015. "Habitat Features and Strategies for the Sustainable Development in the Alentejo Region," Brazilian Journal of Rural Economy and Sociology (Revista de Economia e Sociologia Rural-RESR), Sociedade Brasileira de Economia e Sociologia Rural, vol. 53(Supplemen), pages 1-12, March.
    8. Michael Wyrwich, 2014. "Ready, set, go! Why are some regions entrepreneurial jump starters?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(2), pages 487-513, September.
    9. Heike Delfmann & Sierdjan Koster & Philip McCann & Jouke Van Dijk, 2014. "Population Change and New Firm Formation in Urban and Rural Regions," Regional Studies, Taylor & Francis Journals, vol. 48(6), pages 1034-1050, June.
    10. Christian Felzensztein & Eli Gimmon & Claudio Aqueveque, 2013. "Entrepreneurship at the Periphery: Exploring Framework Conditions in Core and Peripheral Locations," Entrepreneurship Theory and Practice, , vol. 37(4), pages 815-835, July.
    11. Hans WESTLUND & Malin GAWELL, 2012. "Building Social Capital For Social Entrepreneurship," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 83(1), pages 101-116, March.
    12. Darja Reuschke, 2011. "Self-Employment and Geographical Mobility in Germany," SOEPpapers on Multidisciplinary Panel Data Research 417, DIW Berlin, The German Socio-Economic Panel (SOEP).
    13. Zizi Goschin, 2020. "What makes new firms resilient? A spatial analysis for Romania," Regional Science Policy & Practice, Wiley Blackwell, vol. 12(5), pages 913-930, October.
    14. Barba-Sánchez, Virginia & Arias-Antúnez, Enrique & Orozco-Barbosa, Luis, 2019. "Smart cities as a source for entrepreneurial opportunities: Evidence for Spain," Technological Forecasting and Social Change, Elsevier, vol. 148(C).
    15. Chih-Cheng CHEN, 2015. "Industrial Agglomeration, Clusters, and Regional New Firm Formation: A Case Study of Taiwan’s Counties/Cities," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 15(1), pages 173-190.
    16. Isabel Grilo & Roy Thurik, 2008. "Determinants of entrepreneurial engagement levels in Europe and the US," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 17(6), pages 1113-1145, December.
    17. Nijkamp, P. & Stough, R. & Sahin, M., 2009. "Impact of social and human capital on business performance of migrant entrepreneurs - a comparative dutch-us study," Serie Research Memoranda 0017, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    18. Erik Stam, 2010. "Entrepreneurship, Evolution and Geography," Chapters, in: Ron Boschma & Ron Martin (ed.), The Handbook of Evolutionary Economic Geography, chapter 6, Edward Elgar Publishing.
    19. Martin Andersson & Johan P. Larsson, 2022. "Historical local industry structure, voting patterns and the long-run entrepreneurial character of regions: Swedish examples," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 69(3), pages 611-631, December.
    20. Shao, Yan & Sun, Lingxia, 2021. "Entrepreneurs’ social capital and venture capital financing," Journal of Business Research, Elsevier, vol. 136(C), pages 499-512.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    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:ersa11p327. 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: http://www.ersa.org .

    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.