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Job changes, entrepreneurship and regional economy

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  • Tatsuyoshi Masuda

Abstract

Job changes from being Self-Employed Workers (SEs) in entrepreneurship into Wage Earners (WEs) suggest the reduction of entrepreneurship capital accumulation, and by contrast, job changes from WEs into SEs indicate the fostering of this capital accumulation. What effect do these job changers have on the regional (prefectural) economy? We examine the determinants of regional income in Japan, focusing on these two types of job changers, the public financial assistance to Small and Medium Enterprises (SMEs) and the entrepreneurial capital (venture business) accumulation. Empirical results show that neither type of job changer has a significant impact on regional income. The public financial assistance exerts a negative impact on regional income. A significant and positive relationship with the regional income is found in prefectures with higher levels of entrepreneurial capital accumulation. This finding coincides with that of Audretsch and Keilbach (2004a; 2004b). We can insist that policy makers support more specific venture businesses than only SEs.

Suggested Citation

  • Tatsuyoshi Masuda, 2010. "Job changes, entrepreneurship and regional economy," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 10(2), pages 257-286.
    • Handle: RePEc:ids:ijesbu:v:10:y:2010:i:2:p:257-286
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