The Evolution of Regional Entrepreneurship and Growth Regimes

Michael Fritsch () and Pamela Mueller

Chapter 11 in Entrepreneurship in the Region, 2006, pp 225-244 from Springer

Abstract: Abstract It is hardly disputed that new business formation and self-employment can be important drivers of economic growth (Scarpetta, 2003; Carree and Thurik, 2003). Recent empirical studies (Fritsch and Mueller, 2004; Van Stel and Storey, 2004; Baptista, Escaria and Madrugo, 2005) have clearly shown that the main positive effects of new business formation do not occur immediately when the new ventures are started but become effective only in the longer run. This paper analyzes the development of regional entrepreneurship and its effect on employment growth in West Germany in the 1983–2002 period. First, we investigate the magnitude and persistence of regional entrepreneurship (section 3 and 4). The second part is devoted to the impact of new businesses on regional employment. This analysis is based on a classification of regional growth regimes that are identified according to differences in the effect that entrepreneurship has on regional employment growth (section 5). In investigating transitions between growth regimes we are able to identify a typical life-cycle of regime types that has important implications for a policy that is aiming at stimulating regional development (section 6). We begin with some basic information on the data and on measurement issues (section 2).

Keywords: Small Firm; Rank Position; Nascent Entrepreneur; Growth Regime; Business Formation (search for similar items in EconPapers)
Date: 2006
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Persistent link: https://EconPapers.repec.org/RePEc:spr:inschp:978-0-387-28376-0_11

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DOI: 10.1007/0-387-28376-5_11

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