State-Level Determinants of Entrepreneurship and a Preliminary Measure of Entrepreneurial Climate

Abstract

State and local governments increasingly look to entrepreneurship as a means of stimulating economic growth. However, can the public sector play a role in promoting entrepreneurial activity—and if so, what should that role be? The authors investigate independent effects of financial and human entrepreneurial capital and ideas on entrepreneurial activity in the 50 states. Financial entrepreneurial capital has an inverse U-shaped relationship with entrepreneurial activity, suggesting there are limits to using increasing amounts of financial capital to stimulate entrepreneurship, all else being equal. The authors rank each state in terms of predicted and actual entrepreneurial activity scores and propose a preliminary measure of the entrepreneurial “climate” of each state. Although most states are ranked near where casual analysis might place them, the authors find that others have predicted values that differ significantly from actual values. This suggests that climate may be an important factor in stimulating entrepreneurial activity.

Entrepreneurial Culture, Regional Innovativeness and Economic Growth

“…The trend to explain regional economic success in terms of non-economic factors has resulted in numerous ill-defined concepts generally referring to the role of an entrepreneurial culture, like 'regional innovative capacity' (Lawson and Lorenz, 1999), 'enterprise culture' (Amin and Tomaney, 1991), 'entrepreneurial ability' (Kangasharju, 2000), 'entrepreneurial human capital' (Georgellis and Wall, 2000), 'entrepreneurial climate' (Malecki, 1994;Goetz and Freshwater, 2001) and 'regional cultures of innovation' (Thomas, 2000;Venkataraman, 2004). These authors argue that local social conditions play an important role in the genesis and assimilation of innovation and its transformation into economic growth.…”

Promoting Entrepreneurship in the Agri-food Industry: Policy Insights from a Pan-European Public–Private Consortium

“…) resources (Bahrami and Evans, 1995;Niosi and Bas, 2001;Fini et al, 2009;Dahlqvist and Wiklund, 2012). Along these lines, context-specific policy interventions aimed at fostering entrepreneurship can, therefore, play pivotal roles (Goetz and Freshwater, 2001;Verheul et al, 2002;Bolzani et al, 2014). 1 It is important to underline that entrepreneurship policy is distinct from small business policy (Hart, 2003;Audretsch et al, 2007) because it is directed at targeting novel and dynamic business activities and not just activities in small companies (Hart, 2003), thus using a more pervasive range of institutions and tools (Audretsch et al, 2007).…”

How to Improve New Generation Migrant Workers’ Entrepreneurial Willingness—A Moderated Mediation Examination from the Sustainable Perspective

“…Regional entrepreneurial climate refers to individuals' common values on entrepreneurship within a focal region [41]. The regional entrepreneurial climate includes public tolerance for failures of entrepreneurship, respect for entrepreneurs, and encouraging and supporting new ideas.…”