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Analyzing the determinants of entrepreneurship in European cities

Author

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  • Andrés Barreneche García
Abstract
This study investigated the determinants of business creation as a measure of entrepreneurship in European cities. It examined supply- and demand-side elements, actual and equilibrium rates of entrepreneurship, institutions and culture. These components were characterized using a dataset consisting of 21 indicators drawn from 184 cities in 20 European countries during the years 1999–2010. The study found that city size, self-employment, and tertiary education have a significant and positive impact on the number of new businesses registered. The implications of these findings are discussed in view of the European Commission’s Small Business Act, which provides guidelines for the conception and implementation of entrepreneurship policies in the European Union. This paper’s main contribution lies in the differentiation of factors that are context-specific (e.g., city-size) and others that can be influenced by policy (e.g., tertiary education). Copyright Springer Science+Business Media New York 2014

Suggested Citation

  • Andrés Barreneche García, 2014. "Analyzing the determinants of entrepreneurship in European cities," Small Business Economics, Springer, vol. 42(1), pages 77-98, January.
    • Handle: RePEc:kap:sbusec:v:42:y:2014:i:1:p:77-98
    DOI: 10.1007/s11187-012-9462-8
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    References listed on IDEAS

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    Cited by:

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    2. Yu-Chen Kuo & Jia-Huey Lin, 2020. "Picking the lock: how universal healthcare programs influence entrepreneurial activities," Small Business Economics, Springer, vol. 54(1), pages 3-24, January.

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    More about this item

    Keywords

    Entrepreneurship; Business creation; Self-employment; Europe; Cities; Agglomeration; Policy; C21; C38; L26; L50; M13; O52; R10;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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