“…On the one hand, an increase in unemployment may have a negative impact on exit because self-employed individuals face fewer job opportunities and are thus less prone to exit (Carree and Thurik, 1996;Lin et al, 2001;Nyström, 2007aNyström, , 2007bCarree et al, 2008;Santarelli et al, 2009). On the other hand, unemployment is a proxy for the level of activity of the economy and an increase may result in an increase in the number of exits (Buzzelli, 2005;Brixy and Grotz, 2007;Fertala, 2008). As for the differences in industrial composition, the lower the complexity and diversity of the local industrial structure, the lower the ability to reallocate resources to new activities when a negative shock occurs (Kosacoff and Ramos, 1999).…”