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Entrepreneurship in rural regions: the role of industry experience and home advantage for newly founded firms

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  • Antoine Habersetzer
  • Marcin Rataj
  • Rikard H. Eriksson
  • Heike Mayer

Abstract

Industry experience and home advantage can have a varying influence on entrepreneurial competitiveness, depending on the regional context. We use matched employer–employee data from Statistics Sweden to analyse new firm formation in rural, urban and metropolitan regions. The results suggest that industry experience has a positive effect on firm survival, while firm growth is more influenced by home advantage. Interestingly, a positive home advantage only exists in rural regions, where native entrepreneurs create significantly more jobs than non-locals.

Suggested Citation

  • Antoine Habersetzer & Marcin Rataj & Rikard H. Eriksson & Heike Mayer, 2021. "Entrepreneurship in rural regions: the role of industry experience and home advantage for newly founded firms," Regional Studies, Taylor & Francis Journals, vol. 55(5), pages 936-950, May.
    • Handle: RePEc:taf:regstd:v:55:y:2021:i:5:p:936-950
    DOI: 10.1080/00343404.2020.1826038
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    Cited by:

    1. Maruseva, Valeria & Kroll, Henning, 2024. "Potential and resilience: Evidence from peripheral regions of Germany," Discussion Papers "Innovation Systems and Policy Analysis" 82, Fraunhofer Institute for Systems and Innovation Research (ISI).

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