The Effect of New Business Formation on Regional Development

Fritsch, Michael

doi:10.1002/9781118970812.ch17

Cited by 3 publications

(3 citation statements)

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“…In many recent studies, the level of entrepreneurial activity is considered as a measure of the country's well-being and one of the crucial determinants of regional economic development. However, the current empirical evidence supporting this assumption is rather scarce than rich (Fritsch 2017;Dvouletý 2017a;Bjørnskov and Foss 2016;Prieger et al 2016;Carlsson et al 2010;Brixiova 2011;Mueller et al 2008, Wennekers andThurik, 1999). Exploration of the relationship between the entrepreneurial activity and the country's economic growth is thus important and relevant for both researchers and policymakers.…”

Section: Introductionmentioning

confidence: 99%

Investigating the relationship between entrepreneurship and regional development: case of developing countries

2018

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A lot has been written about the relationship between entrepreneurship and regional development in the past years. However, do we have conclusive empirical evidence for justification of this relationship? Policymakers expect from entrepreneurship positive impact on country's wealth and employment. Nevertheless, several scholars have argued that the impact of entrepreneurship might be even negative, especially, when the institutions are not working well. This might be a case of developing countries. According to our research, a recent empirical study that would be investigating this relationship is missing. Therefore, we utilize the dataset of 48 countries classified according to U.N. as developing for years 2000-2015 and we empirically test the relationship between the established business ownership rate (obtained from Global Entrepreneurship Monitor) and a set of country's economic indicators (Gross Domestic Product, Gross National Income, and Human Development Index). Obtained estimates support a hypothesis assuming a negative influence of entrepreneurship on regional development of developing countries (represented by GDP and GNI). Nevertheless, we failed to prove any impact of entrepreneurship on HDI. These findings have crucial implications for both policymakers and researchers. Based on this study, more efforts need to be put to better understand different forms of entrepreneurial activity in developing countries, its institutional context, and link towards regional economic development.

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Section: Introductionmentioning

confidence: 99%

Investigating the relationship between entrepreneurship and regional development: case of developing countries

2018

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“…After achieving independence in 1991, the Republic of Kazakhstan began building a market economy. A market economy creates completeness through market transactions, as well as through any exchange based on agreement (Fritsch, 2017). These exchanges and transactions not only help market participants fulfil their desires but also improve social well-being due to the surpluses created by the mechanism of effective resource allocation (Titarenko, 2021).…”

Section: Introductionmentioning

confidence: 99%

The impact of entrepreneurship on the socio‐economic development of regions

et al. 2022

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The relevance of the present article is explained by the need for a detailed study of the influence of medium and small business representatives on the economic indicators of the Republic of Kazakhstan. In this regard, this study is aimed at identifying or covering the development of entrepreneurship theory and establishing methodological approaches that allow assessing the impact of entrepreneurship on the socioeconomic development of regions. The leading method for the researched subject is a systems analysis, which allows comprehensively considering the regional economy as a complex multi-component structure, performing in unstable global conditions. In addition, the following methods were used: logical analysis, comparative, economic, synthesis and deduction, classification, and mathematical statistics. The research results are presented in the format of figures and tables showing the contribution and influence of small and medium businesses on the economy of the Republic of Kazakhstan; in the course of the study, the authors covered the components that influence the successful development of the entrepreneurship macro-environment; identified the factors that influence the socio-economic development of the region.The study materials are of practical value for economists, teachers, and students in the field of economics, representatives of small and medium businesses.

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“…Long ago, Schumpeter (1926Schumpeter ( , 1950 argued that the source of economic development is entrepreneurs who bring about creative destruction. More recently, Fritsch (2008) elaborated four economic functions of entrepreneurship: (1) improving efficiency by competing with existing companies; (2) providing a greater variety of goods and services; (3) amplifying innovations by creating new markets; and (4) accelerating industrial and structural change. In this paper we study two indicators of entrepreneurship across US regions: the overall business start-up rate and the high-tech business start-up rate.…”

Section: Introductionmentioning

confidence: 99%