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Catching a wave: the formation of co-operatives in Finnish regions

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  • Panu Kalmi

Abstract

This paper compares the formation rates of co-operatives and conventional firms in Finland using regional data. The Finnish co-operative “wave” that began in the mid-1990s provides a useful setting for testing the hypothesis that co-operative formation rates are higher in depressed economic conditions. The empirical results support this hypothesis. Co-operatives are formed more often in regions with high unemployment; in contrast, conventional firms are formed more often when unemployment is low and demand growth is high. Furthermore, the existence of dedicated advisory services boosts the formation of co-operatives. These results indicate that co-operatives may play a useful role in reducing unemployment and that the formation of co-operatives may be influenced by policy measures. Copyright Springer Science+Business Media, LLC. 2013

Suggested Citation

  • Panu Kalmi, 2013. "Catching a wave: the formation of co-operatives in Finnish regions," Small Business Economics, Springer, vol. 41(1), pages 295-313, June.
    • Handle: RePEc:kap:sbusec:v:41:y:2013:i:1:p:295-313
    DOI: 10.1007/s11187-012-9424-1
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    2. Belloc, Filippo, 2017. "What deters labor-owned firm creation? Evidence from Italian manufacturing sectors," Journal of Comparative Economics, Elsevier, vol. 45(1), pages 139-153.

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    More about this item

    Keywords

    Regional analysis of firm formation; Co-operatives; Finland; Unemployment and firm entry; L26; M13; P13;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • P13 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Cooperative Enterprises

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