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Small Business Economics

, Volume 52, Issue 1, pp 175–191 | Cite as

Entrepreneurship capital spillovers at the local level

  • José Luis Massón-GuerraEmail author
  • Pedro Ortín-Ángel
Article

Abstract

The paper analyses three underexplored issues in the entrepreneurship capital spillover literature, namely, its local nature, the generators and the receptors of such spillovers. For that purpose, we take advantage of the Ecuadorian census of establishments. Unlike previous evidence, we can estimate the spillovers at the establishment level, compute the entrepreneurship capital at the local level, and compare different permissiveness levels in the application of registration and tax legislation to businesses (i.e., the relative importance of the informal economy). In general, we find entrepreneurship capital spillovers at the local level. The spillover effects are lower when the entrepreneurship capital has been accumulated in informal businesses. By contrast, informal, large and more technologically developed establishments benefit more from these spillover effects. The paper discusses the implications of those findings for the design of public policies for promoting entrepreneurship.

Keywords

Entrepreneurship capital Production spillovers Cities Informal economy 

JEL classifications

L26 O4 R11 

Notes

Acknowledgments

The authors gratefully acknowledge the valuable comments and suggestions from Emilio Congregado, Martín Larraza-Kintana and Vicente Salas-Fumás. The authors received financial support from the Spanish Ministry of Economy, Industry and Competitiveness, R&D project: ECO2017-86305-C4-2-R.

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Copyright information

© Springer Science+Business Media, LLC, part of Springer Nature 2018

Authors and Affiliations

  1. 1.Business DepartmentUniversitat Autònoma de BarcelonaBarcelonaSpain

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