Employment Growth and Entrepreneurial Activity in Cities

Ács, Zoltán J.; Armington, Catherine

doi:10.1080/0034340042000280938

Cited by 433 publications

(308 citation statements)

References 32 publications

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“…A considerable number of these studies are restricted to the headquarters of new firms and do not take into account new subsidiaries. A clear positive impact of new business formation on employment has been found in studies about the USA (ACS and ARMINGTON, 2004;REYNOLDS, 1994REYNOLDS, , 1999, however the magnitude of the relationship seems to vary over time. Empirical proofs of a clear positive relationship in other countries are relatively rare (see CARREE and THURIK, 2003, 457-463 for an overview).…”

Section: Review Of the Evidencementioning

confidence: 93%

Effects of New Business Formation on Regional Development over Time

Fritsch¹,

Mueller²

2004

Regional Studies

474

425

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Fritsch M. and Mueller P. (2004) Effects of new business formation on regional development over time, Regional Studies38, 961-975. In the analysis of the impact of new business formation on regional employment change, considerable time lags were identified. The structure and extent of these time lags were investigated by applying the Almon lag model and it was found that new firms can have both a positive and a negative effect on regional employment. The results indicate that the indirect effects of new business formation (crowding out of competitors, improvement of supply conditions and improved competitiveness) are of greater magnitude than the direct effect, i.e. the jobs created in the new entities. The peak of the positive impact of new businesses on regional development is reached about 8 years after entry. Fritsch M. et Mueller P. (2004) Les effets temporels de la creation d'entreprise sur l'amenagement du territoire, Regional Studies38, 961-975. Cette analyse des effets de la creation d'entreprise sur l'amenagement du terriotire identifie d'importants decalages dans le temps. On examine la structure et la portee de ces decalages en appliquant le modele Almon. Il s'avere que les nouvelles entreprises font preuves d'effets postifs et negatifs sur l'emploi regional. Les resultats portent a croire que les effets indirects de la creation d'entreprise (l'eviction des concurrents, l'amelioration des conditions de l'offre, et une competitivite accrue) sont d'une plus grande importance que ne l'est l'effet direct, c'est a dire les emplois crees dans les nouveaux etablissements. L'effet positif des nouvelles entreprises sur l'amenagement du territoire touche a son maximum environ huit annees apres la creation de celles-la. Fritsch M. und Mueller P. (2004) Der Einfluss von Grundungsprozessen auf die Regionalentwicklung im Zeitablauf, Regional Studies38, 961-975. Fur den Einfluss von Grundungsaktivitaten auf die Regionalentwicklung lassen sich erhebliche Zeitverzogerungen feststellen. Wir analysieren das Ausmass und die Struktur dieser Zeitverzogerungen mit dem Almon-Lag Verfahren. Die Ergebnisse zeigen, dass Grundungen sowohl einen positiven als auch einen negativen Einfluss auf das Beschaftigungsniveau haben konnen. Allgemein scheinen die indirekten Effekte des Grundungsgeschehens (Verdrangung etablierter Konkurrenten, Verbesserung des Angebots und gesteigerte Wettbewerbsfahigkeit) starker ausgepragt zu sein als der direkte Effekt, gemessen als die in den neuen Firmen entstandenen Arbeitsplatze. Das Maximum des positiven Einflusses der Grundungen auf die Regionalenwicklung wird nach ca. acht Jahren erreicht. Fritsch M. y Mueller P. (2004) Los efectos de la formacion de nuevas empresas en el desarrollo regional a lo largo del tiempo, Regional Studies38, 961-975. En el analisis del impacto de la formacion de nuevas empresas sobre la variacion en el empleo regional se identifican retardos temporales considerables. Nosostros investigamos la estructura y el grado de estos retardos mediante la aplicacion del modelo de re...

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Section: Review Of the Evidencementioning

confidence: 93%

Effects of New Business Formation on Regional Development over Time

Fritsch¹,

Mueller²

2004

Regional Studies

474

425

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“…At the regional level, evidence in favour of a significant positive impact of new firm formation on employment is provided by Reynolds (1994Reynolds ( , 1999, and Acs and Armington (2004). However, the magnitude of such relationship seems to vary over time.…”

mentioning

confidence: 98%

Entrepreneurship, Regional Development and Job Creation: The Case of Portugal

Baptista

Escária

Madruga³

2005

SSRN Journal

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This paper investigates whether a high level of new business formation in a region stimulates employment growth in that region. We look at the lag structure of these effects using a data set covering a fairly large time span . We find that indirect effects of new firm births on subsequent employment growth are stronger than direct effects. However, indirect effects only occur about eight years after new firm formation. In particular, and unlike the findings from studies of other countries using a similar approach, positive indirect effects do not seem to tail off in the Portuguese case. This is likely due to a general pattern of results in which lags appear to be longer for Portugal. In view of these results, we suggest that the lag times and magnitudes the effects on new firm formation on subsequent employment growth are likely dependent on the types and qualities of start-ups.Acknowledgements: the authors would like to thank

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“…Firstly, agglomeration economies and cluster theory suggest that business owners and particularly founders accrue benefits from location-specific capital in terms of social networks established prior to the start-up, like access to information and resources (e.g. market contacts), access to financial resources through bank loan officers, and contacts to potential employees (Acs and Armington, 2004;Audretsch et al, 2010;Scott, 2006;Sorenson and Audia, 2000;Stam, 2007). Similarly, evolutionary geography points to the evolutionary process of networks and thus to the socioeconomic embeddedness of start-up activities (Glückler, 2007).…”

Section: Background and Research Contextmentioning

confidence: 99%

Testing the ‘Residential Rootedness’ Hypothesis of Self-Employment for Germany and the UK

Reuschke

Ham

2013

Environ Plan A

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Testing the 'Residential Rootedness'-Hypothesis of Self-Employment for Germany and the UKBased on the notion that entrepreneurship is a 'local event', the literature argues that selfemployed workers and entrepreneurs are 'rooted' in place. This paper tests the 'residential rootedness'-hypothesis of self-employment by examining for Germany and the UK whether the self-employed are less likely to move or migrate than employees. Using longitudinal data from the German Socio-economic Panel Study (SOEP) and the British Household Panel Survey (BHPS) and accounting for transitions in employment status we found little evidence that the self-employed in Germany and the UK are more rooted in place than employees. Firstly, the self-employed are not less likely to move or migrate over the period 2001-08. Secondly, those who are currently self-employed are also not more likely to have remained in the same place over a period of three years (2008-06 and 2005-03) as compared to those who are currently employed. Thirdly, those who are continuously self-employed are not less likely to have moved or migrated over a 3-period than those in continuous paid employment. Fourthly, in contrast to the prevalent 'residential rootedness'-hypothesis in economic geography and regional studies, we found that the entry into and the exit from selfemployment are associated with internal migration.JEL Classification: D22, J61, J62, L26

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Employment Growth and Entrepreneurial Activity in Cities

Cited by 433 publications

References 32 publications

Effects of New Business Formation on Regional Development over Time

Effects of New Business Formation on Regional Development over Time

Entrepreneurship, Regional Development and Job Creation: The Case of Portugal

Testing the ‘Residential Rootedness’ Hypothesis of Self-Employment for Germany and the UK

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