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The Role of Personal Factors in the Location Decision of Software Services Start-up Firms

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  • Declan Curran
  • Theo Lynn
  • Colm O'Gorman

Abstract

This paper explores the factors which influence the business location decisions of start-ups, focusing in particular on the role of personal factors. Established explanations of industry location emphasize proximity to firms in the same or related industries and proximity to a wider set of business services, though recent research suggests that personal factors may play an important role in explanations of industry location—particularly in technology-enabled sectors. A survey of 97 new firms, founded between 2008 and 2012, in the Irish software services sector, shows that the business location decision is influenced by the personal motivation of entrepreneurs to attain a desired quality of life, and that this outweighs economic factors such as proximity to firms within the same or related industries, proximity to a broader set of supporting business services, infrastructure or the availability of government support schemes. Personal factors are particularly important to firms located outside the Dublin metropolitan area and to home-based businesses. This has important policy implications for national and regional governments seeking to encourage entrepreneurship in technology-enabled service sectors.

Suggested Citation

  • Declan Curran & Theo Lynn & Colm O'Gorman, 2016. "The Role of Personal Factors in the Location Decision of Software Services Start-up Firms," European Planning Studies, Taylor & Francis Journals, vol. 24(3), pages 551-567, March.
    • Handle: RePEc:taf:eurpls:v:24:y:2016:i:3:p:551-567
    DOI: 10.1080/09654313.2015.1046369
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    1. Wagner, Alfred, 1891. "Marshall's Principles of Economics," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 5, pages 319-338.
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    Cited by:

    1. 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.
    2. Philip T. Roundy, 2019. "“It takes a village” to support entrepreneurship: intersecting economic and community dynamics in small town entrepreneurial ecosystems," International Entrepreneurship and Management Journal, Springer, vol. 15(4), pages 1443-1475, December.
    3. Jonas Mendes Constante & Peter W. Langen & Salvador Furió Pruñonosa, 2023. "Innovation ecosystems in ports: a comparative analysis of Rotterdam and Valencia," Journal of Shipping and Trade, Springer, vol. 8(1), pages 1-19, December.

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