IDEAS home Printed from https://ideas.repec.org/a/kap/sbusec/v58y2022i4d10.1007_s11187-021-00504-6.html
   My bibliography  Save this article

Stickiness of entrepreneurs: an exploratory study of migration in two mid-sized US cities

Author

Listed:
  • Yasuyuki Motoyama

    (Ohio State University)

  • Sameeksha Desai

    (Indiana University)

Abstract

What makes a place desirable is the subject of much debate. We conduct a mixed methods analysis on two mid-sized US cities—Indianapolis and Kansas City. We use a migration analysis to understand the flow of the general population, creative workers, and entrepreneurs, followed by an exploratory qualitative analysis of impactful entrepreneurs. Our migration analysis shows that these cities are gaining population overall as well as creative workers and entrepreneurs, and our exploratory qualitative analysis shows that entrepreneurs broadly value quality of life factors, including social and family reasons. Our analysis suggests that entrepreneurs are less mobile than the general population, and that they start companies where they live. We discuss the implications of our study for the broader debate on what makes cities attractive and for further refinement of multidimensionality in the urban amenities literature. Plain English Summary Entrepreneurs and creative workers are less mobile than the general population in two mid-sized American cities. We study migration trends of the general population, creative workers, and entrepreneurs in Indianapolis and Kansas City, supplemented with exploratory interviews of impactful entrepreneurs. We find that entrepreneurs are “sticky” in both contexts, and that the reasons for location can be tied to quality of life overall. Our findings have implications for research, which can further investigate the multidimensionality of attractiveness of place, and for policy, which can consider the needs of entrepreneurs and potential entrepreneurs.

Suggested Citation

  • Yasuyuki Motoyama & Sameeksha Desai, 2022. "Stickiness of entrepreneurs: an exploratory study of migration in two mid-sized US cities," Small Business Economics, Springer, vol. 58(4), pages 2139-2155, April.
  • Handle: RePEc:kap:sbusec:v:58:y:2022:i:4:d:10.1007_s11187-021-00504-6
    DOI: 10.1007/s11187-021-00504-6
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11187-021-00504-6
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1007/s11187-021-00504-6?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Stephen Machin & Kjell G. Salvanes & Panu Pelkonen, 2012. "Education And Mobility," Journal of the European Economic Association, European Economic Association, vol. 10(2), pages 417-450, April.
    2. Edward L. Glaeser & Joseph Gyourko & Raven E. Saks, 2006. "Urban growth and housing supply," Journal of Economic Geography, Oxford University Press, vol. 6(1), pages 71-89, January.
    3. Erik Hanushek & Stephen Machin & Ludger Woessmann (ed.), 2011. "Handbook of the Economics of Education," Handbook of the Economics of Education, Elsevier, edition 1, volume 4, number 4, June.
    4. Guangqing Chi & David Marcouiller, 2013. "Natural amenities and their effects on migration along the urban–rural continuum," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 50(3), pages 861-883, June.
    5. Michael S. Dahl & Olav Sorenson, 2012. "Home Sweet Home: Entrepreneurs' Location Choices and the Performance of Their Ventures," Management Science, INFORMS, vol. 58(6), pages 1059-1071, June.
    6. Mark Boyle, 2006. "Culture in the Rise of Tiger Economies: Scottish Expatriates in Dublin and the ‘Creative Class’ Thesis," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 30(2), pages 403-426, June.
    7. Darja Reuschke, 2011. "Self-Employment and Geographical Mobility in Germany," SOEPpapers on Multidisciplinary Panel Data Research 417, DIW Berlin, The German Socio-Economic Panel (SOEP).
    8. Claudio Michelacci & Olmo Silva, 2007. "Why So Many Local Entrepreneurs?," The Review of Economics and Statistics, MIT Press, vol. 89(4), pages 615-633, November.
    9. Baumol, William J., 1996. "Entrepreneurship: Productive, unproductive, and destructive," Journal of Business Venturing, Elsevier, vol. 11(1), pages 3-22, January.
    10. Cailin R. Slattery & Owen M. Zidar, 2020. "Evaluating State and Local Business Tax Incentives," NBER Working Papers 26603, National Bureau of Economic Research, Inc.
    11. Puhani Patrick A., 2001. "Labour Mobility: An Adjustment Mechanism in Euroland? Empirical Evidence for Western Germany, France and Italy," German Economic Review, De Gruyter, vol. 2(2), pages 127-140, May.
    12. Timothy J. Bartik, 2019. "Making Sense of Incentives: Taming Business Incentives to Promote Prosperity," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number msi.
    13. Erik Stam, 2007. "Why Butterflies Don’t Leave: Locational Behavior of Entrepreneurial Firms," Economic Geography, Taylor & Francis Journals, vol. 83(1), pages 27-50, January.
    14. Roback, Jennifer, 1982. "Wages, Rents, and the Quality of Life," Journal of Political Economy, University of Chicago Press, vol. 90(6), pages 1257-1278, December.
    15. Heike Mayer & Antoine Habersetzer & Rahel Meili, 2016. "Rural–Urban Linkages and Sustainable Regional Development: The Role of Entrepreneurs in Linking Peripheries and Centers," Sustainability, MDPI, vol. 8(8), pages 1-13, August.
    16. Mika Haapanen & Petri Böckerman, 2017. "More educated, more mobile? Evidence from post-secondary education reform," Spatial Economic Analysis, Taylor & Francis Journals, vol. 12(1), pages 8-26, January.
    17. Liang Zheng, 2016. "What city amenities matter in attracting smart people?," Papers in Regional Science, Wiley Blackwell, vol. 95(2), pages 309-327, June.
    18. David Audretsch & Maksim Belitski & Sameeksha Desai, 2015. "Entrepreneurship and economic development in cities," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 55(1), pages 33-60, October.
    19. Mikhail Martynovich, 2017. "The role of local embeddedness and non-local knowledge in entrepreneurial activity," Small Business Economics, Springer, vol. 49(4), pages 741-762, December.
    20. Dustmann, Christian & Glitz, Albrecht, 2011. "Migration and Education," Handbook of the Economics of Education, in: Erik Hanushek & Stephen Machin & Ludger Woessmann (ed.), Handbook of the Economics of Education, edition 1, volume 4, chapter 0, pages 327-439, Elsevier.
    21. George Katona & James N. Morgan, 1952. "The Quantitative Study of Factors Determining Business Decisions," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 66(1), pages 67-90.
    22. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    23. Mark Partridge & Sydney Schreiner & Alexandra Tsvetkova & Carlianne Elizabeth Patrick, 2020. "The Effects of State and Local Economic Incentives on Business Start-Ups in the United States: County-Level Evidence," Economic Development Quarterly, , vol. 34(2), pages 171-187, May.
    24. Erik Hanushek & Stephen Machin & Ludger Woessmann (ed.), 2011. "Handbook of the Economics of Education," Handbook of the Economics of Education, Elsevier, edition 1, volume 3, number 3, June.
    25. Klaus Zimmermann, 2005. "European Labour Mobility: Challenges and Potentials," De Economist, Springer, vol. 153(4), pages 425-450, December.
    26. Tino Sanandaji, 2014. "The international mobility of billionaires," Small Business Economics, Springer, vol. 42(2), pages 329-338, February.
    27. Ham, S.A. & Levin, S. & Zlot, A.I. & Andrews, R.R. & Miles, R., 2004. "Ranking of Cities According to Public Health Criteria: Pitfalls and Opportunities," American Journal of Public Health, American Public Health Association, vol. 94(4), pages 546-549.
    28. Glaeser, Edward L. & Rosenthal, Stuart S. & Strange, William C., 2010. "Urban economics and entrepreneurship," Journal of Urban Economics, Elsevier, vol. 67(1), pages 1-14, January.
    29. Becker, Theodore M & Stern, Robert N, 1973. "Professionalism, Professionalization, and Bias in the Commercial Human Relations Consulting Operation: A Survey Analysis," The Journal of Business, University of Chicago Press, vol. 46(2), pages 230-257, April.
    30. Høgni Kalsø Hansen & Thomas Niedomysl, 2009. "Migration of the creative class: evidence from Sweden," Journal of Economic Geography, Oxford University Press, vol. 9(2), pages 191-206, March.
    31. Edward L. Glaeser & Joshua D. Gottlieb, 2006. "Urban Resurgence and the Consumer City," Urban Studies, Urban Studies Journal Limited, vol. 43(8), pages 1275-1299, July.
    32. Weiss, Christoph T., 2015. "Education and regional mobility in Europe," Economics of Education Review, Elsevier, vol. 49(C), pages 129-141.
    33. Steven C. Deller & Tsung-Hsiu (Sue) Tsai & David W. Marcouiller & Donald B.K. English, 2001. "The Role of Amenities and Quality of Life In Rural Economic Growth," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(2), pages 352-365.
    34. Edward L. Glaeser & Kristina Tobio, 2007. "The Rise of the Sunbelt," NBER Working Papers 13071, National Bureau of Economic Research, Inc.
    35. Davidsson, Per & Honig, Benson, 2003. "The role of social and human capital among nascent entrepreneurs," Journal of Business Venturing, Elsevier, vol. 18(3), pages 301-331, May.
    36. Timothy J. Bartik, 2020. "Introduction to Special Issue: Learning More About Incentives," Economic Development Quarterly, , vol. 34(2), pages 95-100, May.
    37. Edward L Glaeser & Jesse M Shapiro, 2003. "Urban Growth in the 1990s: Is City Living Back?," Journal of Regional Science, Wiley Blackwell, vol. 43(1), pages 139-165, February.
    38. Ann Markusen, 2006. "Urban Development and the Politics of a Creative Class: Evidence from a Study of Artists," Environment and Planning A, , vol. 38(10), pages 1921-1940, October.
    39. David B. Audretsch & Erik E. Lehmann & Nikolaus Seitz, 0. "Amenities, subcultures, and entrepreneurship," Small Business Economics, Springer, vol. 0, pages 1-21.
    40. Sierdjan Koster & Viktor A. Venhorst, 2014. "Moving Shop: Residential and Business Relocation by the Highly Educated Self-employed," Spatial Economic Analysis, Taylor & Francis Journals, vol. 9(4), pages 436-464, October.
    41. Cailin Slattery & Owen Zidar, 2020. "Evaluating State and Local Business Incentives," Journal of Economic Perspectives, American Economic Association, vol. 34(2), pages 90-118, Spring.
    42. David A. McGranahan & Timothy R. Wojan & Dayton M. Lambert, 2011. "The rural growth trifecta: outdoor amenities, creative class and entrepreneurial context -super-§," Journal of Economic Geography, Oxford University Press, vol. 11(3), pages 529-557, May.
    43. Doshi, Rush & Kelley, Judith G. & Simmons, Beth A., 2019. "The Power of Ranking: The Ease of Doing Business Indicator and Global Regulatory Behavior," International Organization, Cambridge University Press, vol. 73(3), pages 611-643, July.
    44. Stuart, Toby & Sorenson, Olav, 2003. "The geography of opportunity: spatial heterogeneity in founding rates and the performance of biotechnology firms," Research Policy, Elsevier, vol. 32(2), pages 229-253, February.
    45. Michael Storper & Allen J. Scott, 2009. "Rethinking human capital, creativity and urban growth," Journal of Economic Geography, Oxford University Press, vol. 9(2), pages 147-167, March.
    46. Bergstrom, John C. & Stoll, John R. & Titre, John P. & Wright, Vernon L., 1990. "Economic value of wetlands-based recreation," Ecological Economics, Elsevier, vol. 2(2), pages 129-147, June.
    47. Simone Guercini & Diego Ceccarelli, 2020. "Passion driving entrepreneurship and lifestyle migration: insights from the lutherie of Cremona," Journal of International Entrepreneurship, Springer, vol. 18(3), pages 373-392, September.
    48. Jamie Peck, 2005. "Struggling with the Creative Class," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 29(4), pages 740-770, December.
    49. Heike Mayer & Yasuyuki Motoyama, 2020. "Entrepreneurship in small and medium-sized towns," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 32(7-8), pages 467-472, August.
    50. Knapp, Thomas A. & Graves, Philip E., 1989. "On the role of amenities in models of migration and regional development," MPRA Paper 19914, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. John Carruthers & Gordon F. Mulligan, 2012. "The plane of living and the precrisis evolution of housing values in the USA," Journal of Economic Geography, Oxford University Press, vol. 12(4), pages 739-773, July.
    2. David B. Audretsch & Erik E. Lehmann & Nikolaus Seitz, 2021. "Amenities, subcultures, and entrepreneurship," Small Business Economics, Springer, vol. 56(2), pages 571-591, February.
    3. Arntz, Melanie & Brüll, Eduard & Lipowski, Cäcilia, 2021. "Do preferences for urban amenities really differ by skill?," ZEW Discussion Papers 21-045, ZEW - Leibniz Centre for European Economic Research.
    4. Margarida Rodrigues & Cidália Oliveira & MárioFranco & Ana Daniel, 2024. "A Bibliometric Study About the Rural Creative Class: Proposal of a Conceptual Framework and Future Agenda," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 15278-15303, September.
    5. Richard Florida & Charlotta Mellander & Patrick Adler, 2011. "The Creative Class Paradigm," Chapters, in: David Emanuel Andersson & Åke E. Andersson & Charlotta Mellander (ed.), Handbook of Creative Cities, chapter 3, Edward Elgar Publishing.
    6. Kahn, Matthew E. & Walsh, Randall, 2015. "Cities and the Environment," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 405-465, Elsevier.
    7. Gagliardi, Luisa & Schlüter, Teresa, 2015. "The role of education for amenity based sorting in British cities," LSE Research Online Documents on Economics 65017, London School of Economics and Political Science, LSE Library.
    8. Allen J. Scott, 2010. "Jobs or amenities? Destination choices of migrant engineers in the USA," Papers in Regional Science, Wiley Blackwell, vol. 89(1), pages 43-63, March.
    9. Bjørn Asheim & Høgni Kalsø Hansen, 2009. "Knowledge Bases, Talents, and Contexts: On the Usefulness of the Creative Class Approach in Sweden," Economic Geography, Clark University, vol. 85(4), pages 425-442, October.
    10. Duranton, Gilles & Puga, Diego, 2014. "The Growth of Cities," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 5, pages 781-853, Elsevier.
    11. Andrés Rodríguez-Pose & Tobias D. Ketterer, 2012. "Do Local Amenities Affect The Appeal Of Regions In Europe For Migrants?," Journal of Regional Science, Wiley Blackwell, vol. 52(4), pages 535-561, October.
    12. Fredrik Carlsen & Stefan Leknes, 2022. "For whom are cities good places to live?," Regional Studies, Taylor & Francis Journals, vol. 56(12), pages 2177-2190, December.
    13. Boustan, Leah Platt & Kahn, Matthew E. & Rhode, Paul W. & Yanguas, Maria Lucia, 2020. "The effect of natural disasters on economic activity in US counties: A century of data," Journal of Urban Economics, Elsevier, vol. 118(C).
    14. Aurélie LALANNE & Guillaume POUYANNE, 2012. "Ten years of metropolization in economics: a bibliometric approach (In French)," Cahiers du GREThA (2007-2019) 2012-11, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    15. Daniel C. Monchuk & Dermot J. Hayes & John A. Miranowski & Dayton M. Lambert, 2011. "Inference Based On Alternative Bootstrapping Methods In Spatial Models With An Application To County Income Growth In The United States," Journal of Regional Science, Wiley Blackwell, vol. 51(5), pages 880-896, December.
    16. Wei-Bin Zhang, 2017. "Spatial Agglomeration And Economic Development With The Inclusion Of Interregional Tourism," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 62(213), pages 93-128, April - J.
    17. Vitálišová Katarína & Vaňová Anna & Šúrová Janka, 2020. "How to Attract and Retain Creative Class," NISPAcee Journal of Public Administration and Policy, Sciendo, vol. 13(1), pages 245-266, June.
    18. Stuetzer, Michael & Obschonka, Martin & Audretsch, David B. & Wyrwich, Michael & Rentfrow, Peter J. & Coombes, Mike & Shaw-Taylor, Leigh & Satchell, Max, 2016. "Industry structure, entrepreneurship, and culture: An empirical analysis using historical coalfields," European Economic Review, Elsevier, vol. 86(C), pages 52-72.
    19. Sofie De Prijcker & Sophie Manigart & Veroniek Collewaert & Tom Vanacker, 2019. "Relocation to Get Venture Capital: A Resource Dependence Perspective," Entrepreneurship Theory and Practice, , vol. 43(4), pages 697-724, July.
    20. Winters, John V., 2014. "The Production and Stock of College Graduates for U.S. States," IZA Discussion Papers 8730, Institute of Labor Economics (IZA).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:sbusec:v:58:y:2022:i:4:d:10.1007_s11187-021-00504-6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.