Regional Opportunities & Policy Initiatives For New Venture Creation

In this Erasmus-Panteia Entrepreneurship Lecture prof. Carree discusses the determinants of new venture creation across industries and locations for 103 Italian provinces over the 1997-2003 period. In this study regional opportunities are allowed to differ across industries: the focus is on the impact of several factors on entrepreneurship in manufacturing, retailing and wholesaling, hotels and restaurants. The results show that wage costs limit entry in manufacturing while regions with industrial districts achieve higher start up rates. Start up rates in commercial sectors are higher in large cities and in area with strong economic progress. For hotels and restaurants the relative number of tourist arrivals positively influences new firm formation. No significant effect is found of recently introduced regional laws promoting entrepreneurship on firm formation rates.