| Entrepreneurship and Regional Economic Growth: Towards A General Theory of Start-Ups |
| Full Document: |
No document available |
|
| Reference Type : |
NCGE Research Reports |
| Authors : |
Gries, Thomas; Naude, Wim |
| Year : |
2008 |
| Keywords : |
start-ups, entrepreneurship, frictions, economic growth |
| Abstract : |
Start-ups of new firms are important for economic growth. However, start-up rates differ significantly between countries and within regions of the same country. A large empirical literature studies the reasons for this and attempts -Date identify the regional determinants of start-ups. In contrast, there is a much smaller theoretical literature that attempts the formal modelling of the start-up process within a region. In this paper, we attempt -Date contribute -Date this small literature by introducing a general theoretical model of the entrepreneurial start-up process. The model links start-ups -Date economic growth and can be applied -Date understand growth in a regional context. We derive five propositions that fit the stylized facts Date the empirical literature: (i) growth in the regional economy is driven by an expansion in the number of start-up firms that supply intermediate goods and services; (ii) improvements in human capital will enhance the rate of start-ups; (iii) improvements in the relative rates of return -Date entrepreneurs and business conditions will raise start-up rates; (iv) an increase in regional financial concentration will reduce the start-up rate in a region and; (v) increased agglomeration/urbanization in a region has an a priori ambiguous effect on start-up rates. |
| URL link : |
http://d.repec.org/n?u=RePEc:unu:wpaper:rp2008-70&r=ent |
| Category : |
Effective Entrepreneurship Education |
| Subcategory : |
Curricula and pedagogy development |
| << Back |
