The Impact of Regional Factors on the Start‐Up Ratio in Japan

Hiroyuki Okamuro and Nobuo Kobayashi

Journal of Small Business Management, 2006, vol. 44, issue 2, 310-313

Abstract: We analyze regional factors of the start‐up ratio in Japan using two datasets with different regional aggregation levels. The explanatory variables represent demand, cost, human resource, financial, industry agglomeration and industrial structure, and other factors. The empirical results demonstrate that even though all these factors significantly affect the start‐up ratio at the municipality level, some of these factors are not significant at a larger economic area level. In particular, we obtained evidence that human resource factors, together with the average wage and average size of establishments, are important determinants of the regional start‐up ratio in both the samples.

Date: 2006
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DOI: 10.1111/j.1540-627X.2006.00172.x

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