Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/121287
Authors: 
Fritsch, Michael
Wyrwich, Michael
Year of Publication: 
2015
Series/Report no.: 
Jena Economic Research Papers 2015-009
Abstract: 
Emerging literature shows that spatial differences in entrepreneurship tend to persist over longer periods of time. A potential mechanism underlying this pronounced persistence is that high levels of start-up activity lead to the emergence of a regional culture and a supporting environment in favor of entrepreneurship that particularly involves social capital. This chapter summarizes the available empirical evidence on the regional persistence of entrepreneurship and elaborates in detail how different elements of such a culture, such as social capital, can exert an influence on the level of new business formation and self-employment. As a demonstration for the relevance of a regional entrepreneurship culture for new business formation, we highlight the case of Germany where we find pronounced persistence of start-up activity despite radical structural and institutional shocks over the course of the 20th century. The German case suggests that there is a long-lasting local culture of entrepreneurship that can survive disruptive changes. We discuss the relationship between place- specific social capital and a regional culture of entrepreneurship and draw policy conclusions.
Subjects: 
economic development
entrepreneurship
entrepreneurship culture
institutions
new business formation
self-employment
social capital
JEL: 
L26
R11
O11
Document Type: 
Working Paper

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