Anne Risselada and Veronique Schutjens investigate to what extent the choice to run a business from home is linked to the entrepreneur’s work-lifestyle. The question has been largely neglected in studies on firm location processes, though it appears that a growing number of firms that are active in developing sectors – such as the knowledge, personal services and consumer sectors that contribute to feed the New Economy – are home-based businesses. The authors use information collected from 370 entrepreneurs operating in 41 residential neighbourhoods in five Dutch cities. Their results show that work-lifestyle factors matter to whether neighbourhood firms are home based: the likelihood of being home based increases with caring for family needs or when the business does not provide the primary household income, and decreases with the growth ambition of the entrepreneur.
Anne Risselada and Veronique Schutjens
Niels Bosma and Veronique Schutjens
Towards an Understanding of the Economies of Neighbourhoods and Communities
Marianne de Beer and Veronique Schutjens
This chapter’s focus is on inter-firm networks of entrepreneurs located in residential neighbourhoods in the Netherlands and, in particular, on the importance of local inter-firm cooperation contacts and changes therein over time. If local inter-firm cooperation networks exist and become more important over time, the neighbourhood economic tissue might be strengthened and eventually benefit both incumbent firms and new entrepreneurial activities. Based on previous literature, we differentiate in our analysis between a number of characteristics, for example, firm age, firm home-basedness and firm local market orientation. Two waves of The Survey on the Social Networks of Entrepreneurs (in 2008 and 2014) provided us with a panel of 197 entrepreneurs active in over 140 residential neighbourhoods in 40 Dutch municipalities. For both years, the entrepreneurs mention one cooperation contact on average, and for local contacts this average is even lower. Therefore, we conclude that neither local cooperation nor cooperation in general is a common strategy. Using ordered logistic regression models, we found that over time, the average number and importance of local cooperation contacts hardly changed, although it did increase significantly for home-based firms, whereas it decreased for young firms. However, these findings disguise substantial turbulence in cooperation contacts at the individual (entrepreneurial) level. Between 2008 and 2014, almost 90 per cent of both total and local cooperation contacts were replaced by other contacts, emphasizing the ‘temporary coalition’ character of small neighbourhood firms’ cooperation strategies.