- A-Z
- Jena Economic Resea...
- Volume 3
- Are More Start-Ups ...
- Autor(in)
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Friedrich-Schiller-Universität Jena. Wirtschaftswissenschaftliche Fakultät
- Erschienen
- 13. August 2009
- Nummer des Discussion-Papers
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2009-070
- Schlagwort(e)
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Entrepreneurship
entrepreneurship policy
new business formation
regional development
- Zusammenfsg.
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Empirical analyses suggest that the employment creating effect of start-ups is highest in regions with a low level of new business formation and that an increase in the regional start-up rate beyond a certain level may lead to negative employment effect. In explaining these results, we assume that the average quality of regional start-ups decreases with the number of start-ups, while the costs of the induced resource reallocation increase. Our model implies that it is not the number of start-ups but their quality that is decisive for their effect on economic development. Therefore, a policy aiming at stimulating economic growth through entrepreneurship should focus on high-quality start-ups.
- article pub. typess JER
- Research article
- article languages JER
- Englisch
- article research fields JER
- entrepreneurship
- JEL-Classification for JER
- L26 - Entrepreneurship ; M13 - New Firms; Startups ; O1 - Economic Development; O18 - Regional, Urban, and Rural Analyses ; R11 - Regional Economic Activity: Growth, Development, and Changes