Handbook of Research on Entrepreneurship and Regional Development

Handbook of Research on Entrepreneurship and Regional Development

National and Regional Perspectives

Elgar original reference

Edited by Michael Fritsch

Recent research has found pronounced differences in the level of entrepreneurship and new business formation across various regions and nations. This timely Handbook reveals that the development of new ventures as well as their effects on overall economic growth are strongly shaped by their regional and national environment. The expert group of contributors gives an overview on the current state of the art in this field, and proposes avenues for further investigation. Topics include the regional determinants of new business formation, the effects of start-ups on growth, the role of globalization for regional entrepreneurship, the effect of national and regional framework conditions, as well as the role of universities as incubators of innovative new firms.

Chapter 3: Regional Determinants of Entrepreneurial Activities – Theories and Empirical Evidence

Rolf Sternberg

Subjects: business and management, entrepreneurship, economics and finance, regional economics, urban and regional studies, regional economics


Rolf Sternberg CONCEPTUALIZATION OF ENTREPRENEURSHIP FROM A REGIONAL PERSPECTIVE This chapter offers theoretical arguments and empirical evidence to support the hypothesis that entrepreneurial activities are to a large extent a ‘regional event’ (Feldman, 2001). It is argued that regional, that is, subnational, determinants are relevant for both an individual’s decision to start a new business and a start-up’s success. As Figure 3.1 illustrates, entrepreneurial activities are influenced by regional (and non-regional) determinants and have regional (and non-regional) effects. For example, entrepreneurs need the primarily regional, informal network of friends, former colleagues and bosses, relatives, and first Institutions Infrastructure Established SMEs Regional start-up activities Regional attributes Capital Labor ‘Soft’ locational factors Large firms Policies Macroeconomic trend Education Industry Capital Infrastructure Knowledge transfer Cultural norms and values Labor market effects Knowledge transfer Renewal of firm stock Endogenous regional development Personal perception of regional environment by potential founders Has an impact on start-up decision and start-up success Source: Sternberg (2009, 245). Figure 3.1 Causes and effects of regional entrepreneurship 33 M2713 - FRITSCH 9781848442641 PRINT.indd 33 26/08/2011 15:54 34 Handbook of research on entrepreneurship and regional development customers to be able to realize their start-up idea at all, particularly at the first attempt. Not only the causes, but also the economic effects of entrepreneurial activities can primarily be felt locally and regionally, at least in a start-up’s early days (see Figure 3.1). Only when several start-ups actually develop into forcefully growing new firms, can employment and other effects then be felt on...

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