Level Of New Business Formation Research Articles

Antiretroviral Therapy Coverage, Entrepreneurship, and Development in Low- and Middle-Income Countries

Improvements in the health capital of citizens are central to the development of countries. By exploiting steep decreases in antiretroviral drug prices and the subsequent increases in antiretroviral therapy (ART) coverage, we test whether the resulting improvements in the health of the population are associated with the prevalence of entrepreneurial activity and whether entrepreneurial activity strengthens the relationship between ART coverage and a country’s development. Drawing on a sample of 87 low- and middle-income countries (2006–2019), we find that a 1% increase in ART coverage is associated with a 1.5% increase in the number of newly registered limited liability firms; however, there is no significant relationship with (male or female) self-employment. Higher ART coverage is particularly associated with development—as proxied by gross domestic product (GDP) per capita and the Human Development Index—in countries with low levels of new business formation and high proportions of self-employment.

Historical roots of entrepreneurship-facilitating culture and innovation activity: an analysis for German regions

ABSTRACTThere is a research gap with respect to understanding the role of cultural attitudes in favour of entrepreneurial activity for actual start-up behaviour. The paper combines historical self-employment data with a psychological measure for entrepreneurial attitudes. 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. This measure is positively related not only to the level of new business formation but also to the amount of innovation activity.

Regional knowledge, entrepreneurial culture, and innovative start-ups over time and space\u2015an empirical investigation

We investigate the role of entrepreneurship culture and the historical knowledge base of a region on current levels of new business formation in innovative industries. The analysis is for German regions and covers the time period 1907–2014. We find a pronounced positive relationship between high levels of historical self-employment in science-based industries and new business formation in innovative industries today. This long-term legacy effect of entrepreneurial tradition indicates the prevalence of a regional culture of entrepreneurship. Moreover, local presence and geographic proximity to a technical university founded before the year 1900 is positively related to the level of innovative start-ups more than a century later. The results show that a considerable part of the knowledge that constitutes an important source of entrepreneurial opportunities is deeply rooted in history. We draw conclusions for policy and for further research.

Related variety, unrelated variety and regional growth: the role of absorptive capacity and entrepreneurship

ABSTRACTThis paper investigates the effect of related and unrelated variety on regional growth in West Germany. In particular, it analyzes the role of regional absorptive capacity and new business formation for these effects. It finds that West German regions benefit from both types of varieties. The positive effect of unrelated variety on growth is more pronounced in regions with higher levels of absorptive capacity in terms of research and development activities and with higher levels of new business formation. Such moderating effects cannot be found for related variety.

The Contribution of New Businesses to Regional Employment—An Empirical Analysis

abstractWe investigated regional differences in the contribution of newly founded businesses to regional employment. The analysis was at the spatial level of West German planning regions for the period 1984–2002. We found pronounced differences for the employment contribution of new businesses across regions. Regression analyses of these differences show that the regional level of new business formation explains only a part of the employment effect. More important than the mere presence of startups is their quality in terms of their survival rate and growth rates. A large share of innovation activity in small businesses in a region, a high educational level of the regional workforce, and the wide availability of labor have a significantly positive impact. Our results suggest that the success of newcomers is not necessarily at the expense of incumbents but that the development of both kinds of businesses may be positively interlinked.

Entrepreneurship, regional development and job creation: the case of Portugal

This paper investigates whether a high level of new business formation in a region stimulates employment growth in that region. We look at the lag structure of these effects using a data set covering a fairly large time span (1982-2002). We find that indirect effects of new firm births on subsequent employment growth are stronger than direct effects. However, indirect effects only occur about eight years after new firm formation. In particular, and unlike the findings from studies of other countries using a similar approach, positive indirect effects do not seem to tail off in the Portuguese case. This is likely due to a general pattern of results in which lags appear to be longer for Portugal. In view of these results, we suggest that the lag times and magnitudes the effects on new firm formation on subsequent employment growth are likely dependent on the types and qualities of start-ups.

Die Geographie der Kreativen Klasse in Deutschland

The article analyses the regional distribution of different categories of creative individuals in Germany. Generally, the share of creative people is higher in cities as compared to the rural areas. The freelancing artists are a kind of exception in this respect; they constitute a relatively high share of the population in some rural areas. A high share of creative people in a region can be explained by a high level of public provisions and a high share of foreign born population, which can be regarded as an indicator of the “openness” in the local milieu. Good employment opportunities have only a relatively weak impact. Regions with a high share of creatives tend to have an above average level of new business formation, a high level of innovation and a relatively high share of employees in high-tech industries.

The Geography and the Effect of Creative People in Germany

This paper investigates the geography and the effect of people in creative occupation in Germany. The population share of the Creative Class as well as of bohemians and artists is relatively high in larger cities, but smaller places and rural regions may also have a considerable proportion of people with a creative job. While ethnical and cultural diversity and a high level of public supply in health care and education can explain the distribution of creative people, employment opportunities seem to play only a minor role. There is a positive statistical relationship between the share of people in creative occupations, the level of new business formation and the innovativeness of regions. A high share of creative occupations seems to be conducive to regional growth; however, the exact nature of this relationship is still unclear.

Entrepreneurship, Regional Development and Job Creation: The Case of Portugal

This paper investigates whether a high level of new business formation in a region stimulates employment in that region. The study looks at the lag structure of these effects, using a data set covering a fairly large time span (1982-2002). The indirect supply-side effects of new firm births, whether due to greater competition, efficiency or innovation, seem to be at least as important as the direct effects associated with employment creation by the new entrants. However, such supply-side effects only occur after a time lag of about eight years, leading to a pattern of lagged effects that is somewhat u-shaped. This finding suggests that new entrants bring about improvements to overall regional competitiveness, but that such improvements only become significant after some time.

Developing rural business incubators

How can we assist those communities with low levels of new-business formation? How do we turn around declining rural economies?