Neighbourhood Spatial Order, the Local Economy and Firm Mobility in Urban Areas of the Netherlands

Abstract

Urban residential neighbourhoods in the Netherlands increasingly function as incubation zones for small-scale businesses. Despite this development, little is known about whether and how the local production environment in these neighbourhoods shapes firm mobility behaviour. This article studies how two aspects of the local production environment -the built neighbourhood environment and zoning regulations -affect firm mobility of small-scale businesses in urban residential neighbourhoods. To achieve this aim, we contrast two sets of urban neighbourhoods, pre-and post-second world war neighbourhoods with a comparable low socio-economic profile, but with distinct built environments and zoning regulations. We combine quantitative and qualitative methods to analyse available trade register data from the Dutch regional Chambers of Commerce, study neighbourhood zoning regulations, and conduct focus-group and individual interviews with neighbourhood experts and entrepreneurs. The local built environment and its regulations appear to have a small but significant effect on the firm mobility behaviour of entrepreneurs in the neighbourhoods studied. Relocation intentions are higher among entrepreneurs in post-war than in pre-war neighbourhoods, which may (in part) be attributed to less favourable local institutional settings for businesses, but actual firm mobility does not differ between these neighbourhoods.

Haqqani, Nyma; Herrebosch, Nathan; Jackson, Jane; Juma, Ismat; Kanaan, Faten; (2023) Institute for Global Prosperity 2021-22 Master’s Dissertation Special Issue, Part 1

“…Therefore, exploring the potential impact the built environment and zoning regulations could have on entrepreneurial activity is an essential endeavour to conduce TEE in postconflict countries for peacebuilding and prosperity. In that respect, studies have researched contrasting pre-war and post-war neighbourhoods in the Netherlands (Beckers & Kloosterman, 2014;Beckers & Sleutjes, 2014). Using exploratory research as an approach combining quantitative and qualitative methods, an analysis on the functionality of these neighbourhoods was done.…”

“…As for the neighbourhood-oriented sectors, little difference in survival rates was distinguished, which is believed to be due to the little competition available in postwar neighbourhoods. Beckers and Sleutjes (2014) consider how these contrasting neighbourhoods and the different functions and zoning regulations affect firm mobility. However, their sample was restricted to non-locally oriented sectors, which limited the ability to compare other sectors.…”

“…Entrepreneurs' perceptions of social interactions and disturbance, local policies and relations with local authorities (Beckers & Kloosterman, 2014). From learnings developed in comparing the built environment and spatial order of pre-war and post-war residential neighbourhoods in the Netherlands, enabling entrepreneurial activity requires a shift away from restrictive monofunctional neighbourhoods adopted in the post-war urban planning (Beckers & Kloosterman, 2014;Beckers & Sleutjes, 2014). Social capital is a main motive for entrepreneurial behaviour, even among migrant communities, and is directly affected by the built environment that bounds it.…”

“…However, it is particularly salient as described since the physical infrastructure is vital in primarily conceiving and then developing TEEs. This factor is driven by policy and governance, as Beckers and Kloosterman (2014) and Beckers and Sleutjes (2014) present recommendations, based on their findings, for policymakers to consider in urban and zoning regulations.…”