The direct and indirect effects of new businesses on regional employment: an empirical analysis. (10th May 2010)

• Record Type: Journal Article
• Authors: Fritsch, Michael; Noseleit, Florian; Schindele, Yvonne
• Is Part Of: International journal of entrepreneurship and small business. Volume 10:Number 1(2010)
• Page Start: 49
• Page End: 64
• Publication Date: 2010-05-10
• Subjects: entrepreneurship -- new business formation -- regional development -- direct effects -- indirect effects -- regional employment -- new businesses; Entrepreneurship -- Periodicals; Small business -- Management -- Periodicals; 658.42105
• Languages: English
• ISSNs: 1476-1297

Abstract

We analyse the different types of effects that new businesses may have on regional employment. One of these effects is the direct contribution of employment in the new businesses to overall employment. We also estimate the indirect effect of new business formation on incumbent employment. We find pronounced differences between regions with regard to the two effects. Effects of new business formation on incumbent employment are considerably larger than the direct contribution of new businesses to employment.