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Entrepreneur location decisions across industries

Author

Listed:
  • João J. M. Ferreira

    (University of Beira Interior and NECE - Research Unit in Business Sciences)

  • Cristina I. Fernandes

    (Polytechnic of Castelo Branco & NECE - Research Unit in Business Sciences)

  • Mário L. Raposo

    (University of Beira Interior and NECE - Research Unit in Business Sciences)

  • Roy Thurik

    (Erasmus University Rotterdam)

  • João R. Faria

    (University of Texas at El Paso)

Abstract

In this paper we analyse whether entrepreneur location decisions differ across industries and identify the factors determining the choice of location between rural and urban environments. Firm location is based on a new taxonomy developed over the influential three dimensions of Hayter’s (1997) approach. The paper uses data from sample of one thousand Portuguese firms. We present a stylized theoretical model to determine how these new five dimensions influence firm’s location and test the model through a logistic regression. Our results show that that the location decisions depend on the sector of activity, type of area (urban vs. rural) and the characteristics of the entrepreneur. We find that companies engaged in knowledge intensive business services prefer to locate in urban areas. From an institutional point of view, firms prefer to locate in rural areas.

Suggested Citation

  • João J. M. Ferreira & Cristina I. Fernandes & Mário L. Raposo & Roy Thurik & João R. Faria, 2016. "Entrepreneur location decisions across industries," International Entrepreneurship and Management Journal, Springer, vol. 12(4), pages 985-1006, December.
    • Handle: RePEc:spr:intemj:v:12:y:2016:i:4:d:10.1007_s11365-015-0370-7
    DOI: 10.1007/s11365-015-0370-7
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