Shaped by location? A spatial panel analysis of Romanian family businesses

Goschin, Zizi; Druică, Elena; Vâlsan, Călin

doi:10.1111/rsp3.12284

Cited by 4 publications

(4 citation statements)

References 75 publications

(128 reference statements)

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“…Regions with negative labor market conditions are likely to feel a dampening effect on purchasing power because of lower levels of disposable income, reducing the overall demand and therefore the need for new businesses [9]. This might explain why there is a strong negative correlation between unemployment and new firm creation.…”

Section: Discussionmentioning

confidence: 99%

“…Previous research indicated that besides their contribution to economic growth, new firms are also able to enhance economic resilience to crises [2,3]. Some studies showed that regions with a high level of entrepreneurship are more flexible and more resilient to exogenous shocks due to increased economic diversification and the entrepreneurs' ability to perceive and exploit potential opportunities even in times of crisis [9]. Recent academic debates on new firm formation during the last economic crisis showed that regions with high entrepreneurial initiative are better at withstanding crises and can adapt faster to new economic conditions [10].…”

Section: Literature Reviewmentioning

confidence: 99%

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Entrepreneurship Recovery in Romania after the Great Recession. A Dynamic Spatial Panel Approach

2021

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Entrepreneurship plays a key role in transforming the economy and society by stimulating economic development, testing innovative ideas, creating new jobs, and by enriching the quality of life and human existence. Entrepreneurship dynamics depend upon a series of local and national economic factors, but are also affected by the international environment, such as the current COVID-19 pandemic. Statistical data show that new businesses are created at a slower rate during an economic crisis, when the economic climate is harsh, and business opportunities are scarce. Nevertheless, there are local differences in the reaction to crises, and new business formation tends to decline with variable intensity from one region to another, even in the same country. The crises are acting as a trigger for some opportunity-driven entrepreneurs, and resilient regions can thrive even in times of crisis or recover faster after a depression. To capture spatial interactions, as well as spatial short- and long-term effects, the method employed in our analysis relies on the estimation of dynamic spatial panel models. We tested the potential impact of a large variety of social and economic indicators on the creation of new firms and found that the most consequential factors of influence are the economic crisis (expressed through a binary variable), GDP per capita, FDI per capita, inflation, unemployment, and education. Our results convey a powerful policy message for both national and regional decision makers. We believe that, while putting entrepreneurial initiative to the test, the current COVID-19 crisis might act as a catalyst that leads to innovation and reshapes the economy and society.

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Section: Discussionmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Entrepreneurship Recovery in Romania after the Great Recession. A Dynamic Spatial Panel Approach

2021

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“…Family businesses play a significant role in the development of the regions they operate in, standing out among various business forms. They not only contribute to the local development but are also influenced by their surroundings (Carretero Gómez et al, 2018;Goschin et al, 2020).…”

Section: Territorial Embeddednessmentioning

confidence: 99%

Nurturing Entrepreneurial Family Embeddedness: Practical Insights From a Territorial Perspective

Martínez Sanchis

2024

BEE

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The pervasive presence of family businesses in numerous regions across the globe underscores the paramount importance of ensuring their sustained existence. What sets family businesses apart is their unique commitment to pursuing a vision that transcends generations. Yet, in their relentless pursuit of this vision, entrepreneurial families navigating the intricacies of running these businesses encounter a myriad of challenges in the territories where they are located, which have the potential to threaten their continuity. This research examines the aspect of entrepreneurial families’ continuity from an external standpoint. 43 entrepreneurial families and local experts were interviewed in regions belonging to European countries. Namely, Baden-Württemberg (Germany), Scotland (United Kingdom), the Basque Country and Pays-de-la-Loire regions (in Spain and France, respectively). Offering a framework of 20 mechanisms, findings reveal that formal and informal institutional mechanisms impact entrepreneurial families differently according to the context (and thereby the institutional setting) where the entrepreneurial family is located. Derived from our results, we offer actionable insights that can be directly applied by family businesses and industry practitioners. Our objective is to translate these findings into practical recommendations that enable entrepreneurial families to not only survive but thrive in the ever-evolving business landscape by relying on their unique territorial embeddedness. Received: 1 May 2023Accepted: 13 December 2023

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“…Starting from these considerations, our goal is to explore the impact of the recent economic and financial crisis on the resilience of the new firms and to identify the factors of influence from a regional perspective. Previous research on regional resilience of new firms overlooked the former communist countries in Central and Eastern Europe, although they have some distinctive characteristics relevant for this topic, such as less entrepreneurship experience and lower propensity to start a business (Goschin, Druic a, & Vâlsan, 2020). We chose Romania, the second biggest country in the region, as a case study.…”

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confidence: 99%

What makes new firms resilient? A spatial analysis for Romania

Goschin

2020

Regional Science Policy & Practice

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Resilient regions seem to be able to retain a higher level of entrepreneurial activity in times of crisis, when the capacity of new firms to survive and thrive is severely put to test. Aiming to find which regional characteristics sustain entrepreneurship resilience, this paper explores the impact of the recent economic and financial crisis on the survival of new firms, using Romania as an exponent of postcommunist countries in Central and Eastern Europe. After testing a wide range of potential explicative factors, we found that the most consequential ones are the foreign direct investments, population growth and the agglomeration of active firms. A custom-made economic crisis variable differentiated the recession time span for each county, according to its individual response to crisis, and allowed us to find how the economic crisis changes the spatial influence of the variables. The spatial panel framework used for this analysis showed that location matters for the survival of newly born firms.

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Shaped by location? A spatial panel analysis of Romanian family businesses

Cited by 4 publications

References 75 publications

Entrepreneurship Recovery in Romania after the Great Recession. A Dynamic Spatial Panel Approach

Entrepreneurship Recovery in Romania after the Great Recession. A Dynamic Spatial Panel Approach

Nurturing Entrepreneurial Family Embeddedness: Practical Insights From a Territorial Perspective

What makes new firms resilient? A spatial analysis for Romania

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