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(Small) Business Activity and State Economic Growth: Does Size Matter?

Author

Listed:
  • Donald Bruce
  • John Deskins
  • Brian Hill
  • Jonathan Rork

Abstract

Bruce D., Deskins J. A., Hill B. C. and Rork J. C. (Small) business activity and state economic growth: does size matter?, Regional Studies. Using a 1988-2002 panel of US state-level data, the impact of small and large business activity on gross state product (GSP), state personal income (SPI), and total state employment was examined. Business activity measures include annual counts of firms, establishments, and employees, the dollar value of payroll expenses, and annual births and deaths of establishments. The paper accounts for the simultaneity of business activity and overall growth, other determinants of economic growth, and spatial influences of small business activity. It is found that overall economic growth is faster when the net birth rate of new small firm establishments is positive. [image omitted] Bruce D., Deskins J. A., Hill B. C. et Rork J. C. Activite des (petites) entreprises et croissance economique de l'Etat: l'importance de la taille, Regional Studies. S'appuyant sur une serie de donnees au niveau des Etats-Unis pour la periode 1988-2002, nous examinons les consequences de l'activite des petites et grandes entreprises sur le produit brut de l'Etat (GSP), sur le revenu personnel par tete (SPI) et sur l'emploi total de l'Etat. Les mesures de l'activite des entreprises portent sur les comptes annuels des entreprises, des etablissements et du personnel, la valeur en dollar des depenses de personnel ainsi que sur les naissances et les deces annuels dans les etablissements. Nous tenons compte de la simultaneite de l'activite des entreprises et de la croissance globale, d'autres determinants de la croissance economique et des influences sur l'espace de l'activite des petites entreprises. Nous constatons que la croissance economique globale est plus rapide lorsque le taux des naissances des petites entreprises nouvelles est positif. Petites entreprises Entreprenariat Croissance economique Bruce D., Deskins J. A., Hill B. C. und Rork J. C. Aktivitaten von (Klein-)Unternehmen und Wirtschaftswachstum im Staat: Kommt es auf die Grosse an?, Regional Studies. Anhand eines Panels mit Daten auf der Ebene der US-Bundesstaaten im Zeitraum von 1988 bis 2002 untersuchen wir die Auswirkung der Aktivitaten von Klein- und Grossunternehmen auf das Bruttostaatsprodukt, das personliche Einkommen im Staat und das Gesamtbeschaftigungsniveau im Staat. Zu den Massstaben fur die Unternehmensaktivitat gehoren jahrliche Zahlungen von Firmen, Einrichtungen und Mitarbeitern, der Dollarwert der Lohnaufwendungen sowie die jahrliche Anzahl an Firmengrundungen und Firmenschliessungen. Wir berucksichtigen die Gleichzeitigkeit von Geschaftsaktivitaten und Gesamtwachstum sowie weitere Determinanten des Wirtschaftswachstums und raumliche Einflusse auf die Aktivitat von Kleinunternehmen. Wir stellen fest, dass sich das generelle Wirtschaftswachstum beschleunigt, wenn die Nettorate der Grundungen von neuen Kleinbetrieben positiv ausfallt. Kleinunternehmen Unternehmertum Wirtschaftswachstum Bruce D., Deskins J. A., Hill B. C. y Rork J. C. Actividad economica (pequena) y desarrollo economico del estado: ¿et tamano importa?, Regional Studies. Con ayuda de un panel de datos a nivel estatal de 1988-2002 de los EE UU., analizamos el efecto de la actividad comercial de pequenas y grandes empresas en el producto bruto del Estado, los ingresos personales del Estado, y el empleo estatal total. En la actividad comercial se han medido los costes anuales de las sociedades, los establecimientos y empleados, el valor del dolar de los costes laborales y los nacimientos y fallecimientos anuales de los negocios. Tenemos en cuenta la simultaneidad de la actividad comercial y del crecimiento en general, otros determinantes del crecimiento economico y las influencias espaciales de la actividad de pequenas empresas. Comprobamos que el crecimiento economico general es mas rapido cuando es positiva la tasa neta de nacimientos de las pequenas empresas nuevas. Pequenas empresas Empresariado Crecimiento economico

Suggested Citation

  • Donald Bruce & John Deskins & Brian Hill & Jonathan Rork, 2009. "(Small) Business Activity and State Economic Growth: Does Size Matter?," Regional Studies, Taylor & Francis Journals, vol. 43(2), pages 229-245.
    • Handle: RePEc:taf:regstd:v:43:y:2009:i:2:p:229-245
    DOI: 10.1080/00343400701808915
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    References listed on IDEAS

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    1. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, April.
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    1. Lenka Smékalová, 2014. "An Analysis of the Impact of Cohesion Policy in the Transport Sector," Acta Universitatis Bohemiae Meridionales, University of South Bohemia in Ceske Budejovice, vol. 17(2), pages 93-101.
    2. Paul E. Orzechowski, 2020. "U.S. Small Business Administration loans and U.S. state-level employment," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 44(3), pages 486-505, July.
    3. Oldřich Hájek & Lenka Smékalová & Jiří Novosák & Petr Zahradník, 2014. "Prostorová koherence národní a evropské regionální politiky: poznatky z České republiky a Slovenska [Spatial Coherence of National and European Regional Policy: The Insights from the Czech Republic," Politická ekonomie, Prague University of Economics and Business, vol. 2014(5), pages 630-644.
    4. Paul-Bogdan Zamfir, 2014. "Aspects Regarding The Role Of Antrepreneurial Activity In Romanian Economic Development," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 1, pages 268-272, February.
    5. Andrew G Ross & Kenny Crossan & Linda Juleff, 2012. "How accurate are VAT registrations as a measure of entrepreneurship?," Local Economy, London South Bank University, vol. 27(3), pages 279-296, May.
    6. Edmundo Escrivão Filho & Alexandre Farias Albuquerque & Marcelo Seido Nagano & Luiz Adalberto Philippsen Junior & Jair de Oliveira, 2017. "Identifying SME mortality factors in the life cycle stages: an empirical approach of relevant factors for small business owner-managers in Brazil," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 7(1), pages 1-15, December.
    7. Xi Huang, 2021. "Immigration and economic resilience in the Great Recession," Urban Studies, Urban Studies Journal Limited, vol. 58(9), pages 1885-1905, July.
    8. Cai, Zhengyu & Winters, John V., 2017. "Self-employment differentials among foreign-born STEM and non-STEM workers," Journal of Business Venturing, Elsevier, vol. 32(4), pages 371-384.
    9. Alexandre Farias Albuquerque & Edmundo Escrivão Filho & Marcelo Seido Nagano & Luiz Adalberto Philippsen Junior, 2016. "A change in the importance of mortality factors throughout the life cycle stages of small businesses," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 6(1), pages 1-18, December.
    10. Koirala, Samjhana & Jakus, Paul M. & Watson, Philip, 2023. "Identifying Constraints to Rural Economic Development: A Development Guidance Function Approach," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 48(3), September.
    11. John Deskins & Brian Hill & Laura Ullrich, 2010. "Education Spending and State Economic Growth: Are All Dollars Created Equal?," Economic Development Quarterly, , vol. 24(1), pages 45-59, February.
    12. Małgorzata Wosiek & Adam Czudec, 2019. "The Relationship between the Entrepreneurship and the Local Environment: Evidence from Poland," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 262-289.

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    More about this item

    Keywords

    M13; O4;

    JEL classification:

    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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