Regional characteristics, opportunity perception and entrepreneurial activities

Abstract

This paper seeks to better understand the link between regional characteristics and individual entrepreneurship. We combine individual-level GEM data for Western Germany with regional-level data, using multi-level analysis to test our hypotheses. We find no direct link between regional knowledge creation, the economic context and an entrepreneurial culture on the one side and individual business start-up intentions and start-up activity on the other side. However our findings point to the importance of an indirect effect of regional characteristics as knowledge creation, the economic context and an entrepreneurial culture have an effect on the individual perception of founding opportunities which in turn predicted start-up intentions and activity.

The constructivist view of entrepreneurial opportunities: a critical analysis

“…The constructivist approach hardly ever receives any critical attention, as though it serves as a panacea to some of the most important and demanding problems at the heart of entrepreneurial theory (Stuetzer et al 2014;Pacheco et al 2010;Kirzner 2009;McMullen et al 2007; see also Ripsas 1998;Hébert and Link 1989).…”

The influence of entrepreneurs’ social referents on start-up size

“…Because we use two levels of analysis, data are analyzed using hierarchical linear modeling methods (Autio and Wennberg 2010;Autio et al 2013;Bosma and Sternberg 2014;Estrin and Mickiewicz 2011;Estrin et al 2013;Stuetzer et al 2014). We do not employ standard multivariate methods because they would preclude our assuming the independence of observations (Autio and Wennberg 2010;Hofmann et al 2000).…”

“…experience as an entrepreneur) will weaken the effect of the average size of established firms in the region on the start-up size of the entrepreneurs' new venture. The conceptual model proposed captures the two dimensions of the multilevel approach that we want to tackle in this paper: the regional context and the individual (Autio and Acs 2010;Autio and Wennberg 2010;Capelleras et al 2016;Stuetzer et al 2014). …”

“…In doing so, we look at how a macro-level variable influences an individuallevel decision, and thus help reduce the macro-micro divide in entrepreneurship research. Recent publications have emphasized the need to keep looking at the interaction between the individual and the environment (Autio and Acs 2010;Capelleras et al 2016;Contín-Pilart and Larraza-Kintana 2015;Shaver 2012;Stuetzer et al 2014). This paper is a further contribution in this direction.…”

“…Entrepreneur's decisions and behaviors with prior owner-manager experience will be less influenced by already established entrepreneurs (social referents). The study of these moderation effects further contributes to enhancing our understanding of the interaction between the environment and the individual in the entrepreneurial process (Autio and Acs 2010;Capelleras et al 2016;Stuetzer et al 2014).…”