Handbook of Research on Entrepreneurship and Regional Development
Show Less

Handbook of Research on Entrepreneurship and Regional Development

National and Regional Perspectives

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.
Buy Book in Print
Show Summary Details
You do not have access to this content

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

Rolf Sternberg


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...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.