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Small Business Economics

, Volume 7, Issue 5, pp 389–407 | Cite as

Explaining regional variation in business births and deaths: U.S. 1976–88

  • Paul D. Reynolds
  • Brenda Miller
  • Wilbur R. Maki
Article

Abstract

Linear models are developed to determine the relative impact of 15 start-up processes on the annual regional birth rate of new business organizations for all industry sectors in the U.S. over 6 two-year periods. These stable linear models explained from 50–70|X% of the variation in regional firm birth and death rates up to 16 years into the future. Start-up processes that have the most impact involve regional economic diversity; population growth; greater personal wealth; presence of mid-career adults; low unemployment; and greater flexibility in employment relationships. There was a complete absence of any impact of regional variation associated with higher densities of customers, suppliers, workers, R&D resources; costs of production; or access to national transportation facilities.

Keywords

Linear Model Regional Variation Stable Linear Industrial Organization Regional Birth Rate 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Kluwer Academic Publishers 1995

Authors and Affiliations

  • Paul D. Reynolds
    • 1
  • Brenda Miller
    • 2
  • Wilbur R. Maki
    • 3
  1. 1.Marquette UniversityMilwaukee
  2. 2.Center for the Study of EntrepreneurshipMarquette UniversityMilwaukee
  3. 3.University of MinnesotaSt. Paul

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