The effects of new firm formation on regional development over time: The case of Great Britain

By Pamela Mueller, André van Stel, D. Storey. 2006

259 citations recorded by the source corpus.

This paper re-examines the link between new firm formation and subsequent employment growth. It investigates whether it is possible to have the wrong type of entrepreneurship—defined as new firm formation which leads to zero or even negative subsequent employment growth. It uses a very similar approach to that of Fritsch and Mueller (Regional Studies, 38(8), 961–976, 2004), confirming their findings that the employment impact of new firm formation is in three discrete phases. Then, using data for Great Britain, the paper shows the employment impact of new firm formation is significantly positive in the high-enterprise counties of Great Britain. However, for the low-enterprise counties, it shows that new firm formation has a negative effect on employment. Of the 15 low-enterprise regions, eight are Scottish (of nine Scottish regions in our data base) and three are North East Counties (of four). Our findings imply that having the “wrong type of entrepreneurship” is indeed possible.

Subfields: Economics and Econometrics, Management of Technology and Innovation

View Paper: https://www.semanticscholar.org/paper/9a0a253a1599b151ea583ad2c169f2b92e6e6a7c

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Citations in the corpus

The Long Persistence of Regional Levels of Entrepreneurship: Germany, 1925–2005 (2014, background): “…as West Germany (FRITSCH and MUELLER, 2007), the Netherlands (VAN STEL and SUDDLE, 2008), Sweden (ANDERSSON and KOSTER, 2011), the United Kingdom (MUELLER et al., 2008), and the United States (ACS and MUELLER, 2008) show that regional start-up rates tend to be relatively persistent and path…”
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).”
The impact of new firm formation on regional development in the Netherlands (2005, background): “Research for Great Britain by Mueller et al. (2006) provides some intuition for this hypothesis.”
Entrepreneurship, regional development and job creation: the case of Portugal (2007, background): “Fritsch and Mueller 2004; Mueller et al. 2007 ) in correcting for differences in the industry structure of regions, it can also be suggested that differences in start-up ‘‘quality’’ may explain differences across regions and countries in the size and structure of lagged effects: the size of positiv”
Entrepreneurship, innovation and regional growth: a network theory (2015, background): “Furthermore, entrepreneurship itself has a pronounced regional dimension, with differences in regional start-up rates, as well as differences in the success of start-ups and entrepreneurial attitudes, all indicating the role of the regional environment in fostering entrepreneurship (Armington and Ac”
Entrepreneurship and economic development in cities (2015, background): “As an empirical exercise, Mueller et al. (2008) smoothened the lag structure.”
Regional Social Legitimacy of Entrepreneurship: Implications for Entrepreneurial Intention and Start-up Behaviour (2014, background): “Research on the regional dimension of entrepreneurship complements the traditional focus on the individual in entrepreneurship research by demonstrating the crucial role entrepreneurship plays in regional development (FRITSCH and MUELLER, 2004; MUELLER et al., 2008; VAN STEL and STOREY, 2004).”
The impact of entrepreneurship on economic, social and environmental welfare and its determinants: a systematic review (2020, background): “However, several empirical studies show that the macroeconomic impact of entrepreneurship can also be negative under certain conditions (e.g. Carree and Thurik 2008; Andersson and Noseleit 2011; Fritsch and Mueller 2004, 2008).”
Territorial servitization: Exploring the virtuous circle connecting knowledge-intensive services and new manufacturing businesses (2017, background): “The second dependent variable captures a relevant contribution of new businesses to territorial performance, namely employment generation (Mueller et al., 2008; Eriksson et al., 2014).”
Entrepreneurship in the Region: Breeding Ground for Nascent Entrepreneurs? (2006, background): “New business formation is recognized to have an important stimulating effect on economic development (Scarpetta, 2003; Reynolds, Bygrave and Autio, 2004; Audretsch and Keilbach, 2004; Fritsch and Mueller, 2004; van Stel and Storey, 2004).”