Abstract:
The dynamics of entrepreneurship, through the entry and exit of new businesses, vary greatly across countries and regions. The production of new entrepreneurs is unevenly distributed, but equally desired around the world. These differences contribute to significant differences in the number of jobs and the economic growth of regions. The question of why some regions and cities produce more entrepreneurs than others has received considerable attention. Many have tried to understand these differences by studying the distribution of the essential resources and factors of production for entrepreneurship, i.e. the supply of financial, human, and intellectual capital. These have however failed to explain much of the variation across regions.