The Influence of Local Social and Industrial Characteristics on Emergent Entrepreneurship

Matt Saboe and Simon Condliffe
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Matt Saboe: West Chester University
Simon Condliffe: West Chester University

The Review of Regional Studies, 2015, vol. 45, issue 3, 203-220

Abstract: We consider the effect of cities on the individual decision to start a firm. Specifically, we consider how several agglomeration theories may encourage individuals to launch a new firm. We contribute to the expanding literature on entrepreneurship by using the Kauffman Index of Entrepreneurial Activity (KIEA) for 1998-2011 to consider individual startup decisions, while controlling for individual motivations, and to examine the importance of the local industry conditions to new firm launches across several industries. We find that individuals in regions with entrepreneurial social and institutional structures are more likely to launch a new firm, while industry concentration and diversity are only significant in denser locations. The presence of small and new firms in a region creates an environment conducive to entry and is consistent across industries.

Keywords: agglomeration; new firm entry; cities; Chinitz (search for similar items in EconPapers)
JEL-codes: J2 L26 R1 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (1)

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