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How does Regional Entrepreneurship Transfer over Time? The Role of Household Size and Economic Success

Author

Listed:
  • Michael Wyrwich

    (University of Groningen, and Friedrich Schiller University Jena)

  • Michael Fritsch

    (Friedrich Schiller University Jena)

Abstract
Mounting empirical evidence shows that regional differences of entrepreneurship are persistent over long periods of time that may reflect the prevalence of an entrepreneurial culture. We explore three important mechanisms behind the transmission of such an entrepreneurial culture. First, we analyze the role model effects at the household level. We hypothesize that the larger the households of self-employed, the greater the opportunities for role model effects such as an intergenerational transfer of entrepreneurial values and attitudes, and hence the higher the regional start-up rate in later periods. Second, we investigate how the economic success of regional entrepreneurs fuels the role model effects. Third, we analyze if and to what extent the economic success in of regional entrepreneurship stimulates a collective memory of historical entrepreneurship that spurs self-employment in later periods. The analysis of entrepreneurship in German regions over a period of more than 90 years provides support for the significance of all three transfer channels.

Suggested Citation

  • Michael Wyrwich & Michael Fritsch, 2023. "How does Regional Entrepreneurship Transfer over Time? The Role of Household Size and Economic Success," Jena Economics Research Papers 2023-006, Friedrich-Schiller-University Jena.
    • Handle: RePEc:jrp:jrpwrp:2023-006
    as

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    References listed on IDEAS

    as
    1. Andreas Freytag & Roy Thurik, 2010. "Entrepreneurship and its Determinants in a Cross-Country Setting," Springer Books, in: Andreas Freytag & Roy Thurik (ed.), Entrepreneurship and Culture, chapter 0, pages 157-170, Springer.
    2. Sandra E. Black & Paul J. Devereux & Kjell G. Salvanes, 2005. "The More the Merrier? The Effect of Family Size and Birth Order on Children's Education," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 120(2), pages 669-700.
    3. Michael Fritsch & Michael Wyrwich, 2019. "The Persistence of Regional Entrepreneurship," International Studies in Entrepreneurship, in: Regional Trajectories of Entrepreneurship, Knowledge, and Growth, chapter 0, pages 27-46, Springer.
    4. Sjoerd Beugelsdijk, 2010. "Entrepreneurial Culture, Regional Innovativeness and Economic Growth," Springer Books, in: Andreas Freytag & Roy Thurik (ed.), Entrepreneurship and Culture, chapter 0, pages 129-154, Springer.
    5. Abdel Abdellaoui & David Hugh-Jones & Loic Yengo & Kathryn E. Kemper & Michel G. Nivard & Laura Veul & Yan Holtz & Brendan P. Zietsch & Timothy M. Frayling & Naomi R. Wray & Jian Yang & Karin J. H. Ve, 2019. "Genetic correlates of social stratification in Great Britain," Nature Human Behaviour, Nature, vol. 3(12), pages 1332-1342, December.
    6. Martin Andersson & Sierdjan Koster, 2011. "Sources of persistence in regional start-up rates--evidence from Sweden," Journal of Economic Geography, Oxford University Press, vol. 11(1), pages 179-201, January.
    7. Minniti, Maria, 2005. "Entrepreneurship and network externalities," Journal of Economic Behavior & Organization, Elsevier, vol. 57(1), pages 1-27, May.
    8. Arezou Abbasianchavari & Alexandra Moritz, 2021. "The impact of role models on entrepreneurial intentions and behavior: a review of the literature," Management Review Quarterly, Springer, vol. 71(1), pages 1-40, February.
    9. Olav Sorenson, 2017. "Regional ecologies of entrepreneurship," Journal of Economic Geography, Oxford University Press, vol. 17(5), pages 959-974.
    10. Dunn, Thomas & Holtz-Eakin, Douglas, 2000. "Financial Capital, Human Capital, and the Transition to Self-Employment: Evidence from Intergenerational Links," Journal of Labor Economics, University of Chicago Press, vol. 18(2), pages 282-305, April.
    11. Michael Fritsch & Michael Wyrwich, 2019. "The Role of Knowledge," International Studies in Entrepreneurship, in: Regional Trajectories of Entrepreneurship, Knowledge, and Growth, chapter 0, pages 95-117, Springer.
    12. Robert F. Scherer & Janet S. Adams & Susan S. Carley & Frank A. Wiebe, 1989. "Role Model Performance Effects on Development of Entrepreneurial Career Preference," Entrepreneurship Theory and Practice, , vol. 13(3), pages 53-72, April.
    13. Michael Fritsch & Michael Wyrwich, 2014. "The Long Persistence of Regional Levels of Entrepreneurship: Germany, 1925-2005," Regional Studies, Taylor & Francis Journals, vol. 48(6), pages 955-973, June.
    14. Sonja Opper & Fredrik N. G. Andersson, 2019. "Are entrepreneurial cultures stable over time? Historical evidence from China," Asia Pacific Journal of Management, Springer, vol. 36(4), pages 1165-1192, December.
    15. John McMillan & Christopher Woodruff, 2002. "The Central Role of Entrepreneurs in Transition Economies," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 153-170, Summer.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Entrepreneurship; intertemporal transfer; regional trajectories;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • J1 - Labor and Demographic Economics - - Demographic Economics

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