The Contribution of New Businesses to Regional Employment-An Empirical Analysis

Economic Geography

Bibliographic Data

ID4042785
AuthorsMichael Fritsch (0000-0003-0337-4182, Schiller International University), Yvonne Schindele (Schiller International University)
Year2011
Volume87
Issue2
Pages153-180
Publication date2011-04-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueEconomic Geography (JOURNAL)
Journal identifiersISSN: 0013-0095 • E-ISSN: 1944-8287
PublisherWiley (PUBLISHER • GB)
DOI10.1111/j.1944-8287.2011.01113.x
OpenAlexW1523898058
LanguageEN
Citations received20
References cited35

We investigated regional differences in the contribution of newly founded businesses to regional employment. The analysis was at the spatial level of West German planning regions for the period 1984–2002. We found pronounced differences for the employment contribution of new businesses across regions. Regression analyses of these differences show that the regional level of new business formation explains only a part of the employment effect. More important than the mere presence of startups is their quality in terms of their survival rate and growth rates. A large share of innovation activity in small businesses in a region, a high educational level of the regional workforce, and the wide availability of labor have a significantly positive impact. Our results suggest that the success of newcomers is not necessarily at the expense of incumbents but that the development of both kinds of businesses may be positively interlinked

Business · Demographic economics · Economic geography · Economic growth · Economics · Economy · Geography · German · Labour economics · Quality (philosophy) · Regional development · Regional science · Regression analysis · Shift-share analysis · Workforce · Firm Innovation and Growth · Innovation Policy and RD · Regional Development and Policy

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