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The role of regions for different forms of business organizations

Schölin, Tobias LU ; Ohlsson, Henrik LU and Broomé, Per (2017) In Entrepreneurship and Regional Development 29(3-4). p.197-214
Abstract

The evidence for associations between area characteristics and entrepreneurship is fairly consistent in most studies. These studies, however, have disregarded the fact that the areas might be constructs that have no effect on the individual differences in entrepreneurship and, furthermore, have conflated entrepreneurship and sole proprietorship, disregarding the impact of area constructs on different forms of business organizations. Therefore, we investigate and quantify, within a multi-level framework, the importance of municipalities and regions for understanding individual differences in entrepreneurship and self employment (defined as sole proprietorship). By using register data comprising the entire Swedish population for... (More)

The evidence for associations between area characteristics and entrepreneurship is fairly consistent in most studies. These studies, however, have disregarded the fact that the areas might be constructs that have no effect on the individual differences in entrepreneurship and, furthermore, have conflated entrepreneurship and sole proprietorship, disregarding the impact of area constructs on different forms of business organizations. Therefore, we investigate and quantify, within a multi-level framework, the importance of municipalities and regions for understanding individual differences in entrepreneurship and self employment (defined as sole proprietorship). By using register data comprising the entire Swedish population for 2000–2010, we decompose the variation for the respective form of business organization into three levels: the individual, the municipality and the region. Our results show that about 10% of the total variation in entrepreneurship can be attributed to the municipality and region level. The corresponding numbers for self employment are 3–4%. Our results indicate that regions and municipalities differ markedly in area impact for entrepreneurs compared to self employed. The results from the present study show the importance of taking into account the form of business organization in economic analysis, and they can be used when considering whether it is appropriate to focus on specific municipalities and regions for policy interventions on self-employment.

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author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
administrative regions, entrepreneurship, multi-level analysis, regions, Self-employment, sole proprietorship
in
Entrepreneurship and Regional Development
volume
29
issue
3-4
pages
18 pages
publisher
Taylor & Francis
external identifiers
  • scopus:84995684249
  • wos:000395092000001
ISSN
0898-5626
DOI
10.1080/08985626.2016.1257072
language
English
LU publication?
yes
id
ba123b5f-aa06-4301-80af-ccb7565b4e49
date added to LUP
2016-12-02 14:28:29
date last changed
2018-01-07 11:38:16
@article{ba123b5f-aa06-4301-80af-ccb7565b4e49,
  abstract     = {<p>The evidence for associations between area characteristics and entrepreneurship is fairly consistent in most studies. These studies, however, have disregarded the fact that the areas might be constructs that have no effect on the individual differences in entrepreneurship and, furthermore, have conflated entrepreneurship and sole proprietorship, disregarding the impact of area constructs on different forms of business organizations. Therefore, we investigate and quantify, within a multi-level framework, the importance of municipalities and regions for understanding individual differences in entrepreneurship and self employment (defined as sole proprietorship). By using register data comprising the entire Swedish population for 2000–2010, we decompose the variation for the respective form of business organization into three levels: the individual, the municipality and the region. Our results show that about 10% of the total variation in entrepreneurship can be attributed to the municipality and region level. The corresponding numbers for self employment are 3–4%. Our results indicate that regions and municipalities differ markedly in area impact for entrepreneurs compared to self employed. The results from the present study show the importance of taking into account the form of business organization in economic analysis, and they can be used when considering whether it is appropriate to focus on specific municipalities and regions for policy interventions on self-employment.</p>},
  author       = {Schölin, Tobias and Ohlsson, Henrik and Broomé, Per},
  issn         = {0898-5626},
  keyword      = {administrative regions,entrepreneurship,multi-level analysis,regions,Self-employment,sole proprietorship},
  language     = {eng},
  number       = {3-4},
  pages        = {197--214},
  publisher    = {Taylor & Francis},
  series       = {Entrepreneurship and Regional Development},
  title        = {The role of regions for different forms of business organizations},
  url          = {http://dx.doi.org/10.1080/08985626.2016.1257072},
  volume       = {29},
  year         = {2017},
}