Do contextual factors influence entrepreneurship? Spain’s regional evidences

Abstract

This paper examines the socioeconomical forces influencing entrepreneurial activity at both the regional and country level in Spain during the period from 2000 to 2017. Using institutional data, we find significant differences in new firm formation rates by regions. Such variations in firm birth rates are mainly explained by economic growth, unemployment, establishment size, and human capital. Moreover, human capital greatly determines the effect of research and development investment on new firm formation rates. As a result, our work enriches our knowledge of the socioeconomical drivers motivating entrepreneurial action.

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FIG. 1

Notes

  1. 1.

    INE: Instituto Nacional de Estadística

  2. 2.

    DIRCE: Directorio Central de Empresas, INE

    3MECD: Ministerio de educación cultura y deporte

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Correspondence to Mabel Pisá Bó.

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Table 6 Description of the variables

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Novejarque Civera, J., Pisá Bó, M. & López-Muñoz, J.F. Do contextual factors influence entrepreneurship? Spain’s regional evidences. Int Entrep Manag J 17, 105–129 (2021). https://doi.org/10.1007/s11365-019-00625-1

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Keywords

  • Entrepreneurship
  • Environmental factors
  • Regions
  • Human capital