 Regional Entrepreneurship: Pain or Gain for Economic Growth?Christian Dienes (),
Stefan Schneck () and
Hans-Jürgen Wolter ()
A chapter in Eurasian Business and Economics Perspectives, 2025, pp 107-116 from Springer Abstract: Abstract This research note examines the relationship between start-up rates and GDP per capita growth in urban and rural regions in Germany. Hereby, we take into account that urban and rural areas differ markedly in their resource endowment for entrepreneurship, which might be responsible for the different effects of start-up activity on regional development. Therefore, we examine the growth implications rural entrepreneurship might have on the local economy. Using data from about 400 counties in Germany and analyzing the years from 2003 to 2011, we show that new business formation is positively associated with economic growth in rural areas. In urban districts, however, the effect of start-up activity is insignificant. Therefore, regional development is less dependent on the emergence of new businesses in urban counties. The results also unveil that the often-cited inverse U-shaped relationship between entrepreneurship and GDP growth is mainly evident in rural areas. Keywords: Regional growth; Entrepreneurship; Start-up rate; New ventures (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:eurchp:978-3-031-85312-8_6 Ordering information: This item can be ordered from DOI: 10.1007/978-3-031-85312-8_6 Access Statistics for this chapter More chapters in Eurasian Studies in Business and Economics from Springer |
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