The impact of new firm formation on regional development in the Netherlands

By André van Stel, K. Suddle. 2005

252 citations recorded by the source corpus.

This paper examines the relationship between new firm formation and regional employment change in The Netherlands. Using a new regional data base for the period 1988–2002, we examine the time lags involved in the relationship. We also investigate whether the relationship differs by sector and by degree of urbanization. We find that the maximum effect of new businesses on regional development is reached after about 6 years. Our results also suggest that the overall employment impact of new-firm start-ups is positive but that the immediate employment effects may be small in The Netherlands. Furthermore, we find that the employment impact of new firms is strongest in manufacturing industries and that the employment impact of new firms is stronger in areas with a higher degree of urbanization.

Subfields: Economics and Econometrics, Political Science and International Relations

View Paper: https://www.semanticscholar.org/paper/91db7bccc6947c1270e740b17bb908d9ed44c910

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Citations in the corpus

Regional determinants of entrepreneurial start-ups in a developing country (2008, background): “Van Stel and Suddle ( 2006 ) find that the employment effect of start-ups is subject to a lag-period of at least 6 years in the Netherlands and that the immediate employment effects are small.”
Creative destruction and regional productivity growth: evidence from the Dutch manufacturing and services industries (2008, background): “investigating the impact of entry rates on employment growth (e.g., Fritsch and Mueller 2004; Van Stel and Storey 2004; Van Stel and Suddle 2008 ).”
Entrepreneurial role models, fear of failure, and institutional approval of entrepreneurship: a tale of two regions (2016, background): “…differences in entrepreneurial activity, which has been observed in many Western market economies, such as the US (Acs and Mueller, 2008), the UK (Mueller et al., 2008), Germany (Fritsch and Mueller, 2007), the Netherlands (van Stel and Suddle, 2008) and Sweden (Andersson and Koster, 2011).”
Entrepreneurship, job creation and wage growth (2011, background): “This has been investigated by van Stel and Suddle (2008) , Fritsch and Mueller (2008) and Mueller et al. (2008), who all focus on the overall intertemporal employment effects from start-ups in a country or a region.”
The effect of new business formation on regional development over time: the case of Germany (2006, unknown): “4 If only the start-up rates of the preceding eight or nine periods are used in the analysis, there are then no basic changes in the results. coefficients of the analysis for the Netherlands (van Stel and Suddle 2007) and for Great Britain (Mueller et al. 2007).”
Industry structure, entrepreneurship, and culture: An empirical analysis using historical coalfields (2016, background): “…differences in entrepreneurial activities over time, which can be interpreted as indirect evidence for the presence of an entrepreneurship culture (e.g., Andersson and Koster, 2011; Fotopoulos, 2014; Fritsch and Wyrwich, 2014; Mueller et al., 2008; Acs and Mueller, 2008; van Stel and Suddle, 2008).”
A progress review of entrepreneurship and regional development: What are the remaining gaps? (2016, background): “Such studies show that positive employment effects of start-ups are relatively limited in the first three years but increase significantly after 6–8 years (Baptista et al., 2008; Caliendo & Kritikos, 2010; Mueller et al., 2008; van Stel & Suddle, 2008).”
Employment effects of business dynamics: Mice, Gazelles and Elephants (2007, background): “This high degree of multicollinearity is also found in Germany, Great Britain and the Netherlands (Fritsch and Mueller 2004, 2007; Mueller et al. 2007, van Stel and Suddle 2007 ).”
The entrepreneurial ladder, gender, and regional development (2012, background): “Policy makers and academics acknowledge the importance of entrepreneurship for regional performance (Audretsch et al. 2008; Carree and Thurik 2010; Van Stel and Suddle 2008), for example in terms of competitiveness (Kitson et al. 2004; European Commission 2009).”