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The Influence of Local Social and Industrial Characteristics on Emergent Entrepreneurship

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  • Matt Saboe

    (West Chester University)

  • Simon Condliffe

    (West Chester University)

Abstract

We consider the effect of cities on the individual decision to start a firm. Specifically, we consider how several agglomeration theories may encourage individuals to launch a new firm. We contribute to the expanding literature on entrepreneurship by using the Kauffman Index of Entrepreneurial Activity (KIEA) for 1998-2011 to consider individual startup decisions, while controlling for individual motivations, and to examine the importance of the local industry conditions to new firm launches across several industries. We find that individuals in regions with entrepreneurial social and institutional structures are more likely to launch a new firm, while industry concentration and diversity are only significant in denser locations. The presence of small and new firms in a region creates an environment conducive to entry and is consistent across industries.

Suggested Citation

  • Matt Saboe & Simon Condliffe, 2015. "The Influence of Local Social and Industrial Characteristics on Emergent Entrepreneurship," The Review of Regional Studies, Southern Regional Science Association, vol. 45(3), pages 203-220, Winter.
    • Handle: RePEc:rre:publsh:v45:y:2015:i:3:p:203-220
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    Cited by:

    1. Matt Saboe & Simon Condliffe, 2020. "Explaining New Firm Survival: Is the Firm, Owner, or Agglomeration at Fault?," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 46(2), pages 323-343, April.

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    More about this item

    Keywords

    agglomeration; new firm entry; cities; Chinitz;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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