Regional Entrepreneurship Culture and Growth

  • Michael Fritsch
  • Michael Wyrwich
Part of the International Studies in Entrepreneurship book series (ISEN, volume 40)


We use the historical self-employment rate and take it as an instrument to analyze the effect of entrepreneurship on economic growth in recent periods. The results indicate that German regions with a high level of entrepreneurship in the early twentieth century have higher start-up rates at the end of the century. The remarkable long-term effect of historical self-employment rates indicates the presence of a regional culture of entrepreneurship that is an important resource for the persistence of entrepreneurship. Furthermore, when using historical self-employment rates as an instrument for start-up activity, we find that there is a significant effect of start-up activity on regional employment growth.


Entrepreneurship Economic development Self-employment New business formation Entrepreneurship culture Institutions 


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© Springer Nature Switzerland AG 2019

Authors and Affiliations

  • Michael Fritsch
    • 1
  • Michael Wyrwich
    • 2
  1. 1.Friedrich Schiller University JenaJenaGermany
  2. 2.University of GroningenGroningenThe Netherlands

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