Dimos Tripoli, Grecia
This paper analyses the relationship between entrepreneurship and the external environment of firms. Entrepreneurship is approximated by start-ups in four industries, namely manufacturing, commerce, services and tourism. Agglomeration economies and state incentives to promote entrepreneurship at certain locations are the main environmental factors analysed here. Results support the argument that localization and urbanization economies affect different sectors in different ways. In such a context, the observed positive effect of state incentives upon entrepreneurship at certain locations might be counterbalanced by the presence of negative localization effects as suggested by the present findings regarding manufacturing start-ups.
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