Infrastructure required, skill needed: Digital entrepreneurship in rural and urban areas

Christian Bergholz, Lena Füner, Moritz Lubczyk, Rolf Sternberg and Johannes Bersch

Journal of Business Venturing Insights, 2024, vol. 22, issue C

Abstract: In this paper, we study the spatial implications of digital entrepreneurship. Leveraging detailed micro-data on the universe of new venture formations in Germany between 2011 and 2018, we illustrate regional determinants of digital entrepreneurship. Unlike conventional entrepreneurship, digital entrepreneurship demonstrates sustained growth rates throughout this time period, highlighting the policy importance of understanding the drivers of digital ventures’ location choices. The key insight of our study is that digital entrepreneurship requires both digital infrastructure and highly-skilled human capital. If both are present, digital entrepreneurship can flourish in rural areas, even if digital venture formations generally concentrate in urban centers.

Keywords: Digital entrepreneurship; Highly skilled; Rural regions; Urban regions; Digitalization (search for similar items in EconPapers)
JEL-codes: J24 L26 M13 O18 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jobuve:v:22:y:2024:i:c:s2352673424000404

DOI: 10.1016/j.jbvi.2024.e00488

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