KTH/CESIS Working Paper Series in Economics and Institutions of Innovation
The Firm and the Region as Breeding Grounds for Entrepreneurs
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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