Cultural diversity and knowledge in explaining entrepreneurship in European cities (original) (raw)
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Entrepreneurship and the cities in a knowledge-based perspective: evidences from EU
EuroMed Journal of Business
Purpose The purpose of this paper is to answer the following research questions: Is the knowledge of a city environment a stimulus for entrepreneurship? Which knowledge profiles of cities are more propulsive in order to stimulate entrepreneurship? Design/methodology/approach In order to answer the aforementioned research questions, two multidimensional indexes have been created: Knowledge-Based City Developing Entrepreneurship and Entrepreneurship (ENT). The sample includes all capital cities in the EU28. The presence of cities from EU28 countries is important to foster the entrepreneurial attitude in each European Country. The authors have also included 32 non-capital cities in the EU that are important hubs, contributing to a sample formed of 60 cities. Findings The empirical results show that the social and cultural environment may significantly improve the entrepreneurship in EU cities, more than others factors that are usually connected to economic development. Originality/valu...
Cultural diversity and innovative entrepreneurship
Small business economics, 2024
A growing empirical literature has established a positive relationship between cultural diversity and entrepreneurship, often attributing this effect to innovation benefits of diversity. However, not all entrepreneurship is inherently innovative, raising the question of whether cultural diversity may increase the likelihood of an entrepreneur pursuing an innovative instead of a more replicative business strategy. This study investigates the relationship between regional cultural diversity and the innovation orientation of early-stage entrepreneurs and considers moderating factors by decomposing shares of foreignborn population by origin (within and outside of the EU) and by education level. Combining survey data from the Global Entrepreneurship Monitor with population-based indicators of cultural diversity, we carry out a multilevel analysis for 140 European regions. The results suggest that entrepreneurs in culturally more diverse regions are significantly more likely to exhibit innovation orientation. Plain English Summary In regions with a culturally diverse population, entrepreneurs are more likely to pursue innovative rather than replicative business models. According to theory, cultural diversity offers new knowledge, ideas and approaches, which can foster innovative entrepreneurship. In this study, we investigate the role of cultural diversity in explaining regional-level differences in the prevalence of innovation-oriented entrepreneurs in Europe. Using different measures of cultural diversity, we find that more diversity may indeed stimulate innovative entrepreneurship. This provides insights for policy-makers and business practise into the role of cultural diversity in fostering regional innovative potential.
Understanding regional variation in entrepreneurial activity and entrepreneurial attitude in Europe
2011
Differences in entrepreneurial activity and entrepreneurial attitude are substantial and persistent across nations and regions. However, studies on entrepreneurship that encompass regions and countries at the same time are lacking. This paper explains both national and regional differences in entrepreneurial attitude and activity for 127 regions in 17 European countries, based on Global Entrepreneurship Monitor (GEM) data. We reveal the importance of institutional factors and economic and demographic attributes to variations in regional entrepreneurial attitude and activity. Our findings point at the relevance of distinguishing between components of entrepreneurial attitudes, i.e. fear of failure in starting business, perceptions on start-up opportunities and self-assessment of personal capabilities to start a firm. We find different determinants of these components, suggesting that they reflect different aspects of entrepreneurial attitude. In explaining regional prevalence rates of phases in entrepreneurial activity (nascent, baby business, established business) we find significant contributions of entrepreneurial attitude components. Urban regions and regions with high levels of nearby start-up examples show relatively high rates of early-stage entrepreneurship. A large number of start-up procedures does not discourage early-stage entrepreneurship.
Does related variety foster regional entrepreneurship? Evidence from European regions
Regional Studies, 2019
Several studies have identified positive effects of related variety among a region's economic sectors on employment growth. However, the exact mechanisms through which knowledge spillovers between related sectors translate into employment growth are yet to be demonstrated. Entrepreneurship may be a possible transmission mechanism via which spillovers lead to the creation of new jobs. In this paper, we analyze novel pan-European regional survey data that distinguishes between opportunity-and necessity-driven entrepreneurs and we find that related variety has a positive effect on opportunity-driven entrepreneurship. In addition, we also find that different 'varieties of capitalism' influence regional entrepreneurship.
PATTERNS OF PROMISING ENTREPRENEURIAL ACTIVITY IN EUROPEAN REGIONS
Tijdschrift voor Economische en Sociale Geografie, 2007
There is much attention for the role of entrepreneurship in enhancing regional or national growth. However, an absence of empirical entrepreneurship studies (i) including both national and regional measures of entrepreneurship and (ii) acknowledging the variation in types of entrepreneurship causes a gap in understanding the determinants and consequences of entrepreneurial behaviour and the actual spatial level involved. In this contribution we provide a first step towards bridging this gap. We use a large database from the Global Entrepreneurship Monitor (GEM) to create several indicators on regional, early-stage entrepreneurial activity and map these for 125 regions in Europe. Our preliminary results confirm the importance of making a distinction between low and high ambition entrepreneurship. We find, however, that regional variation in high ambition earlystage entrepreneurial activity is less pronounced as compared to overall early-stage entrepreneurial activity. This suggests that national forces are more important to growth and innovation aspirations than to general early stage entrepreneurship.
European Planning Studies, 2013
Regional policies across Europe aim at stimulating regional development in non-core regions through fostering entrepreneurship. However, the policies applied in non-core regions and the concepts of entrepreneurship these policies are based on differ. Therefore, the goal of this review is to identify different understandings of entrepreneurship and their role for regional development processes in European non-core regions. To this end, empirical studies investigating entrepreneurship in European non-core regions from 1999 to 2011 were analysed. The results of the analysis are presented along three drivers and outcomes of entrepreneurship identified inductively from the literature: innovation, social capital and institutional change. We made out seven different types of entrepreneurship in European non-core regions. These seven types of entrepreneurship comprise particular mechanisms through which they stimulate regional development. Further research should study the interplay between these different mechanisms of regional development in non-core regions which may induce a more territorial approach to understand entrepreneurship in non-core regions across Europe.
The knowledge spillover theory of entrepreneurship
Small Business Economics, 2009
We explore if the Knowledge Spillover Theory of Entrepreneurship, applied to FDI, provides at least a partial explanation for the greater emergence of recent knowledgebased entrepreneurship in Ireland compared with Wales. In order to examine how FDI and entrepreneurship policy in these two regions might have influenced the levels of knowledge-based entrepreneurship, we outline FDI and entrepreneurship policies for Wales and Ireland and key measures of knowledge creation, and evaluate the extent and nature of FDI activity and its relationship with entrepreneurship in general and knowledge-based entrepreneurship in particular. Implications include possible policy directions for countries that are characterized by weak knowledge-creating institutions yet wish to encourage knowledge-based entrepreneurship. JEL-classification: J24, L26, M13, 03
Culture and entrepreneurship: a quantitative research in the European context
European J. of Cross-Cultural Competence and Management, 2021
Scholars have started considering cultural values as factors affecting entrepreneurship, so that cross-cultural entrepreneurship has gradually emerged as a specific branch, aimed at developing knowledge about the cultural norms and values which impact on the inclination towards entrepreneurship in different countries (Engelen et al., 2009). According to Hofstede (1980), previous studies reached different and sometimes contrasting results. This paper aims at contributing to the debate on the topic by investigating if cultural values impact on the individual perceptions and entrepreneurship intentions across-countries. To fairly study cultural values across the European countries, the Hofstede's framework and the Global Entrepreneurship Monitor (GEM) have been applied.