Business Density and Economic Growth in Portugal

Cátia Rosário () and Ana Lorga da Silva ()
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Cátia Rosário: Lusófona University, Escola de Ciências Económicas e das Organizações
Ana Lorga da Silva: Escola Superior Náutica Infante D. Henrique, Departamento de Transportes e logística

Chapter Chapter 4 in Quantitative Methods and Data Analysis in Applied Demography - Volume 2, 2025, pp 31-38 from Springer

Abstract: Abstract According to Eurostat, the Portuguese economy is made up of small companies. Out of a total of 833.028 small and medium-sized enterprises (SMEs) in the country, 99.3% are small and the remainder are medium. These companies seek to be strategically located both to capture customers, establish links with suppliers and distribution chains, attract qualified labor and create synergies with other stakeholders. Several business associations in the interior of the country warn of the number of companies that are unable to attract workers. There are many vacancies to be filled and there are more and more. In some cases, it is already holding back investments, preventing business expansion and delaying deliveries of orders and works. This study analyzes the business concentration by area (km2) and by inhabitants (100 inhabitants), differentiated by NUTS II, to distinguish the business density of the 7 regions (North, Center, Metropolitan Area of Lisbon; Alentejo, Algarve, Autonomous Region of Azores and Autonomous Region of Madeira). The analysis is also carried out for the unemployed population, individuals’ gross income, the difference between the national minimum wage and the monthly remuneration of employees. Finally, an analysis is presented using structural equation models on the impact that business density has on value creation, measured through the aforementioned indicators.

Keywords: Business density; Economic growth; Value creation; Structural equation models (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/978-3-031-82279-7_4

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