Abstract
This chapter discusses the empirical evidence of persistent levels of regional self-employment and new business formation. It is argued that a regional culture of entrepreneurship plays an important role in explaining the persistence of entrepreneurship. We discuss possible explanations for the emergence of a culture of entrepreneurship, and how it might become self-perpetuating over time.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
As far as social capital is related to entrepreneurship, the idea goes beyond the concept of an entrepreneurial culture. Entrepreneurship culture captures only that part of social capital that affects the level and the perception of entrepreneurship. It comprises the values, trust and social acceptance of entrepreneurship and the relevant role models and peer mechanisms related to social interaction of entrepreneurs and non-entrepreneurs. It does not include the system of relationships as such. The concept of an entrepreneurship culture goes beyond the notion of social capital as it includes the supportive institutional and physical infrastructure, or policy layer such as entrepreneurship-friendly laws and regulations, supply of supporting services (for example, in training and consulting), access to financial resources, and entrepreneurship education at schools and universities.
References
Acs ZJ, Mueller P (2008) Employment effects of business dynamics: mice, gazelles and elephants. Small Bus Econ 30:85–100. https://doi.org/10.1007/s11187-007-9052-3
Andersson M, Koster S (2011) Sources of persistence in regional start-up rates—evidence from Sweden. J Econ Geogr 11:179–201. https://doi.org/10.1093/jeg/lbp069
Andersson M, Larsson JP (2016) Local entrepreneurship clusters in cities. J Econ Geogr 16:39–66. https://doi.org/10.1093/jeg/lbu049
Becker SO, Boeckh K, Hainz C, Woessmann L (2016) The Empire is dead, long live the Empire! Long-run persistence of trust and corruption in the bureaucracy. Econ J 126:40–74. https://doi.org/10.1111/ecoj.12220
Beugelsdijk S (2007) Entrepreneurial culture, regional innovativeness and economic growth. J Evol Econ 17:187–210. https://doi.org/10.1007/s00191-006-0048-y
Bosma N, Hessels J, Schutjens V, van Praag M, Verheul I (2012) Entrepreneurship and role models. J Econ Psychol 33:410–424. https://doi.org/10.1016/j.joep.2011.03.004
Chlosta S, Patzelt H, Klein SB, Dormann C (2012) Parental role models and the decision to become self-employed: the moderating effect of personality. Small Bus Econ 38:121–138. https://doi.org/10.1007/s11187-010-9270-y
Coleman JS (1988) Social capital in the creation of human capital. Am J Sociol (Suppl) 94:95–120
Dohmen T, Falk A, Huffman D, Sunde U (2012) The intergenerational transmission of risk and trust attitudes. Rev Econ Stud 79:645–677. https://doi.org/10.1093/restud/rdr027
Dubini P (1989) The influence of motivations and environment on business start-ups: some hints for public policies. J Bus Ventur 4:11–26. https://doi.org/10.1016/0883-9026(89)90031-1
Etzioni A (1987) Entrepreneurship, adaptation and legitimation. J Econ Behav Org 8:175–199. https://doi.org/10.1016/0167-2681(87)90002-3
Fornahl D (2003) Entrepreneurial activities in a regional context. In: Fornahl D, Brenner T (eds) Cooperation, networks, and institutions in regional innovation systems. Elgar, Cheltenham, pp 38–57
Fotopoulos G (2013) On the spatial stickiness of UK new firm formation rates. J Econ Geogr 14:651–679. https://doi.org/10.1093/jeg/lbt011
Fotopoulos G, Storey DJ (2017) Persistence and change in interregional differences in entrepreneurship: England and Wales 1921–2011. Environ Plan A 49:70–702. https://doi.org/10.1177/0308518X16674336
Freytag A, Thurik R (2007) Entrepreneurship and its determinants in a cross-country setting. J Evol Econ 17:117–131. https://doi.org/10.1007/s00191-006-0044-2
Fritsch M, Falck O (2007) New business formation by industry over space and time: a multi-dimensional analysis. Reg Stud 41:157–172. https://doi.org/10.1080/00343400600928301
Fritsch M, Kublina S (2016) Persistence and change of regional new business formation in the national league table. Jena Economic Research Papers # 2016-001. Friedrich Schiller University Jena. http://hdl.handle.net/10419/144898
Fritsch M, Mueller P (2007) The persistence of regional new business formation-activity over time – assessing the potential of policy promotion programs. J Evol Econ 17:299–315. https://doi.org/10.1007/s00191-007-0056-6
Fritsch M, Wyrwich M (2014) The long persistence of regional levels of entrepreneurship: Germany 1925 to 2005. Reg Stud 48:955–973. https://doi.org/10.1080/00343404.2013.816414
Fritsch M, Wyrwich M (2016) Does persistence in start-up activity reflect persistence in social capital? In: Westlund H, Larsson JP (eds) Handbook on social capital and regional development. Edward Elgar, Cheltenham, pp 82–107. https://doi.org/10.4337/9781783476831.00009
Giannetti M, Simonov A (2009) Social interactions and entrepreneurial activity. J Econ Manage Strateg 18:665–709. https://doi.org/10.1111/j.1530-9134.2009.00226.x
Kibler E, Kautonen T, Fink M (2014) Regional social legitimacy of entrepreneurship: implications for entrepreneurial intention and start-up behaviour. Reg Stud 48:995–1015. https://doi.org/10.1080/00343404.2013.851373
Laspita S, Breugst N, Heblich S, Patzelt H (2012) Intergenerational transmission of entrepreneurial intentions. J Bus Ventur 27:414–435. https://doi.org/10.1016/j.jbusvent.2011.11.006
Marshall A (1920) Principles of economics, 8th edn. Macmillan, London
Minniti M (2005) Entrepreneurship and network externalities. J Econ Behav Org 57:1–27. https://doi.org/10.1016/j.jebo.2004.10.002
Mueller P, van Stel A, Storey DJ (2008) The effect of new firm formation on regional development over time: the case of Great Britain. Small Bus Econ 30:59–71. https://doi.org/10.1007/s11187-007-9056-z
Nanda R, Sørenson J (2010) Workplace peer effects and entrepreneurship. Manage Sci 56:1116–1126. https://doi.org/10.1287/mnsc.1100.1179
North DC (1994) Economic performance through time. Am Econ Rev 84:359–368
Nunn N (2009) The importance of history for economic development. Annu Rev Econ 1:65–92. https://doi.org/10.1146/annurev.economics.050708.143336
Obschonka M, Stuetzer M (2017) Integrating psychological approaches to entrepreneurship: the entrepreneurial personality system (EPS). Small Bus Econ 49:203–231. https://doi.org/10.1007/s11187-016-9821-y
Obschonka M, Schmitt-Rodermund E, Gosling SD, Silbereisen R (2013) The regional distribution and correlates of an entrepreneurship-prone personality profile in the United States, Germany, and the United Kingdom: a socioecological perspective. J Pers Soc Psychol 105:104–122. https://doi.org/10.1037/a0032275
Obschonka M, Stuetzer M, Gosling SD, Rentfrow PJ, Lamb ME, Potter J, Audretsch DB (2015) Entrepreneurial regions: do macro-psychological cultural characteristics of regions help solve the “knowledge paradox” of economics? PLoS One 10(6):e0129332. https://doi.org/10.1371/journal.pone.0129332
Putnam RD (2000) Bowling alone: the collapse and revival of American community. Simon & Schuster, New York
Rentfrow JP, Gosling SD, Potter J (2008) A theory of the emergence, persistence, and expression of geographic variation in psychological characteristics. Perspect Psychol Sci 3:339–369. https://doi.org/10.1111/j.1745-6924.2008.00084.x
Sorenson O, Audia PG (2000) The social structure of entrepreneurial activity: geographic concentration of footwear production in the United States, 1940–1989. Am J Sociol 106:424–462. https://doi.org/10.1086/316962
Van Stel A, Suddle K (2008) The impact of new firm formation on regional development in the Netherlands. Small Bus Econ 30:31–47. https://doi.org/10.1007/s11187-007-9054-1
Voigtlaender N, Voth HJ (2012) Persecution perpetuated: the medieval origins of anti-semitic violence in Nazi Germany. Q J Econ 127:1339–1392. https://doi.org/10.1093/qje/qjs019
Westlund H, Adams F (2010) Social capital and economic performance: a meta-analysis of 65 studies. Eur Plan Stud 18:893–919. https://doi.org/10.1080/09654311003701431
Westlund H, Bolton RE (2003) Local social capital and entrepreneurship. Small Bus Econ 21:77–113. https://doi.org/10.1023/A:1025024009072
Williamson O (2000) The new institutional economics: taking stock, looking ahead. J Econ Lit 38:595–613
Wyrwich M, Stuetzer M, Sternberg R (2016) Entrepreneurial role models, fear of failure, and institutional approval of entrepreneurship: a tale of two regions. Small Bus Econ 46:467–492. https://doi.org/10.1007/s11187-015-9695-4
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 2019 Springer Nature Switzerland AG
About this chapter
Cite this chapter
Fritsch, M., Wyrwich, M. (2019). Entrepreneurship Culture and Regional Development. In: Regional Trajectories of Entrepreneurship, Knowledge, and Growth. International Studies in Entrepreneurship, vol 40. Springer, Cham. https://doi.org/10.1007/978-3-319-97782-9_2
Download citation
DOI: https://doi.org/10.1007/978-3-319-97782-9_2
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-97781-2
Online ISBN: 978-3-319-97782-9
eBook Packages: Business and ManagementBusiness and Management (R0)