Abstract
This paper integrates insights from regional science and organizational ecology to the entrepreneurship field by constructing a theoretical framework that explains how the regional context impacts the emergence of family and non-family businesses in differing ways. Using a rich multi-level data set, I investigate how characteristics of the economic milieu of regions influence firm births. I find that economic factors, such as regional wealth and number of children born, are associated with the number of non-family start-ups while the number of family start-ups is more strongly tied to the prevalence of small businesses and the political regulatory regime within the municipality. These findings indicate that family start-ups are more susceptible to the local non-economic context than non-family start-ups. This research provides support for the notion that “the geographic context” is an important yet under-theorized area for research on new venture emergence and research on family business.
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