Entrepreneurship and the spatial context: A panel data study into regional determinants of small growing firms in Scotland

Abstract

Entrepreneurship is widely recognised as a key determinant of economic growth, regional prosperity and sustainable development. Using a panel model with data from the value added tax register, this paper estimates spatial variation in small growing firms across 32 Scottish regions for the period 1998–2012. Results show there is considerable variation in small growing firms across Scottish regions and may be explained by demand, supply, policy, cultural factors and agglomeration benefits. Scotland has historically suffered from low levels of entrepreneurial activity; however, this paper provides relevant and timely findings into a form of entrepreneurial activity that until now has largely been overlooked.

Entrepreneurship and local economic resilience: the impact of institutional hysteresis in peripheral places

“…The interviewees did highlight that that there is a growing awareness and acceptance of entrepreneurship, although the nature of entrepreneurial activity remains inherently local and underproductive. While increasing the number of new start-ups is important as an indication of entrepreneurial activity (Ross et al 2015), PPIPs need to ultimately foster more productive entrepreneurship. This point was mentioned by several interviewees, with one interviewee stating:…”

“…Indeed, focusing on new startups can lead to stimulating the 'wrong type' of entrepreneurship in low enterprise areas (Mueller et al 2008;Shane 2009;van Stel and Suddle 2008), as pursuing entrepreneurship as a way out of unemployment may inadvertently create businesses with a low probability of long-term survival and growth (Baptista et al 2014). Therefore, while entrepreneurship policy has hitherto been devised at the national level, an important implication is that one size does not fit all (Mason et al 2015;Ross et al 2015). Indeed, as Tubadji et al (2016, p.104) highlight, 'rather complex and path-dependent cultural preference mechanisms are at stake, when proentrepreneurial economic policy choices are to be made', and as institutions develop in relation to place entrepreneurship and enterprise policy must be sensitive to local institutions.…”

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