Cities and Entrepreneurs over Time: Like a Horse and Carriage?

This paper explores the co-evolution of entrepreneurship and cities. First, it provides a stylized model of development wherein the rise of cities (urbanisation) is the outcome of the activities of entrepreneurs. Secondly, it provides a stylized overview of entrepreneurship and cities from earlier to later stages of development. In young cities a challenge for establishing an entrepreneurial ecosystem is the provision of infrastructure for business’ connectivity and energy. Good urban planning and management skills, including urban policing and dealing with land disputes, may be amongst the most sorely needed in the emerging world today. At more intermediate and later stages of development, cities can become entrepreneurial hotspots and even ‘global startup cities’.