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Entrepreneurial fintech clusters

Author

Listed:
  • Marco Gazel

    (NEOMA Business School)

  • Armin Schwienbacher

    (SKEMA Business School - Université Côte d’Azur)

Abstract

We study the formation and dynamics of entrepreneurial clusters in the emerging fintech industry. Using detailed data on the almost 1000 fintech startups in France to date, we find that most fintechs are geographically clustered and that the location of new fintech startups is affected, among other things, by the size of clusters and the presence of incubators. Larger clusters attract more new fintech startups, and incubators are shown to be an effective mechanism to attract new fintech startups. We further examine entrepreneurial exits of fintechs and find that being located in a larger cluster reduces the risk of failure but increases the likelihood of being acquired. Increased competition within a given segment of fintech increases failure rates. Moreover, the risk of failure is significantly lower for fintech startups that have been developed in an incubator.

Suggested Citation

  • Marco Gazel & Armin Schwienbacher, 2021. "Entrepreneurial fintech clusters," Small Business Economics, Springer, vol. 57(2), pages 883-903, August.
    • Handle: RePEc:kap:sbusec:v:57:y:2021:i:2:d:10.1007_s11187-020-00331-1
    DOI: 10.1007/s11187-020-00331-1
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    References listed on IDEAS

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    Cited by:

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    2. Siyu Chen & Qing Guo, 2024. "Fintech and MSEs Innovation: an Empirical Analysis," Papers 2407.17293, arXiv.org.
    3. Kettunen, Jukka & Martikainen, Minna & Voulgaris, Georgios, 2021. "Employment policies in private loss firms: Return to profitability and the role of family CEOs," Journal of Business Research, Elsevier, vol. 135(C), pages 373-390.
    4. Fahimeh Khatami & Enrico Cagno & Luboš Smrčka & Zoltan Rozsa, 2024. "Assessing the role of FinTech in entrepreneurial ecosystems at the international level," International Entrepreneurship and Management Journal, Springer, vol. 20(4), pages 3373-3402, December.
    5. Dandan Dai & Yijia Chen, 2022. "The geography of the fintech industry in China: An analysis of China’s city‐level patenting," Growth and Change, Wiley Blackwell, vol. 53(4), pages 1907-1932, December.
    6. Kaur, Manmeet & Ahmad, Wasim & Hari, K.S. & Kattumuri, Ruth, 2024. "FinTech entrepreneurial ecosystem in India: Role of incubators and accelerators," Global Finance Journal, Elsevier, vol. 60(C).
    7. Gregor Dorfleitner & Lars Hornuf & Julia Kreppmeier, 2023. "Promise not fulfilled: FinTech, data privacy, and the GDPR," Electronic Markets, Springer;IIM University of St. Gallen, vol. 33(1), pages 1-29, December.
    8. Qing Guo & Siyu Chen & Xiangquan Zeng, 2024. "Digital finance, Bargaining Power and Gender Wage Gap," Papers 2405.15486, arXiv.org.

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