Entrepreneurial attitude and economic growth: A cross-section of 54 regions (original) (raw)
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Entrepreneurial culture, regional innovativeness and economic growth
Journal of Evolutionary Economics, 2007
This paper presents the results of an e mpirical study on the relationship between entrepreneurial culture, regional rates of innovation and regional economic growth. Recent literature mainly in regional science and economic geography has emphasized the role of an entrepreneurial culture in explaining the economic success of regions. Most of these contributions are however conceptual or case-based. Building on Leibenstein's view of the entrepreneur as the 'input completer' and the Austrian school in which entrepreneurial activity is attributed a central role I hypothesize that regions which can be characterized as having an entrepreneurial culture are more innovative and grow faster. I use a standard economic growth model and test this hypothesis on a sample of 54 European regions. The results confirm the importance of an entrepreneurial culture.
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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.
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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.
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The development of regions is considerably shaped by their history. We review research that finds significant persistence of regional levels of entrepreneurship over longer periods of time. It is argued that the long term persistence of regional entrepreneurship indicates the presence and effect of a culture of entrepreneurship that is conducive to new business formation and regional growth. Hence, regional development is characterized by long term trajectories of entrepreneurship. We derive a number of policy implications and propose avenues for further research. The Important Role of Entrepreneurship for Innovation and Growth The effect of entrepreneurship on innovation and growth is a key topic on David Audretsch's research agenda. In our contribution to this Festschrift for David we reflect on our related work on regional trajectories of entrepreneurship, knowledge, and growth (Fritsch and Wyrwich 2019). Specifically, this includes the roles of history and culture in regional development. We review empirical work that shows the long-lasting effects of historical levels of self-employment and innovation on new business formation, innovation, and growth many decades later. It is argued that historical developments can cultivate certain cultural traits and personal attitudes in the local population that shape developments today. In what follows we first review the empirical evidence on persistence of regional levels of entrepreneurship and growth (section "The Long-Term Persistence of Regional Levels of Entrepreneurship"). We then show how historical levels of
Entrepreneurial activity and regional development
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Small Business Economics, 2013
This paper seeks to better understand the link between regional characteristics and individual entrepreneurship. We combine individual-level GEM data for Western Germany with regional-level data, using multi-level analysis to test our hypotheses. We find no direct link between regional knowledge creation, the economic context and an entrepreneurial culture on the one side and individual business start-up intentions and start-up activity on the other side. However our findings point to the importance of an indirect effect of regional characteristics as knowledge creation, the economic context and an entrepreneurial culture have an effect on the individual perception of founding opportunities which in turn predicted start-up intentions and activity.
Historical Roots of Entrepreneurial Culture and Innovation Activity - An Analysis for German Regions
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There is a research gap with respect to understanding the role of entrepreneurial culture and tradition for actual start-up behaviour. We combine historical self-employment data (entrepreneurial tradition) with a psychological measure for entrepreneurial attitudes (entrepreneurial culture). The results reveal a positive relationship between the historical level of self-employment in a region and the presence of people with an entrepreneurial personality structure today. Our measure for a regional culture of entrepreneurship is positively related not only to the level of new business formation but also the amount of innovation activity.
Regional Cultural Context as a Determinant of Entrepreneurial Behaviour: The Case of Germany
The Journal of Entrepreneurship, 2020
This exploratory article aims to take first steps towards understanding whether a regional cultural background has, among other determinants, an influence on a person’s entrepreneurial behaviour, relying on the example of Germany. A multilevel approach is applied combining the Global Entrepreneurship Monitor individual-level data about entrepreneurship with up-to-date cultural dimensions indicators based on Hofstede’s original approach at the regional (NUTS 1) level. The results indicate that regional cultural context is an important determinant of entrepreneurial behaviour. At that, different cultural dimensions have different impacts, and the impact also differs across different stages of entrepreneurship. A lower level of uncertainty avoidance in a region could have a positive impact on early-stage entrepreneurship, whereas the established business ownership seems to be encouraged by a lower level of power distance.
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.