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CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology KTH/CESIS Working Paper Series in Economics and Institutions of Innovation

No 189:
The Firm and the Region as Breeding Grounds for Entrepreneurs

Apostolos Baltzopoulos ()

Abstract: The present study carries out a mutli-level analysis of entrepeneurship by considering the choice of the individual to leave his job position to become self-employed. A comprehensive data-set matching the individual to his place of work allows controlling for the characteristics of both the firm and the region he worked in before starting his own firm. The results suggest that small firms spawn entrepreneurs more frequently and individuals working in larger regions that are characterized by larger local markets, higher accumulation of knowledge resources and higher population density are more likely to transcend into entrepreneurship. I also find evidence that people are more likely to select the path of self-employment in the face of weak local competition.

Keywords: Entrepreneurship; self-employment; externalities; (follow links to similar papers)

JEL-Codes: D01; O12; O18; R10; (follow links to similar papers)

40 pages, August 26, 2009

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