The Impact of Business Climate, Foreign Population, and Unemployment on New Venture Creation
Vol. Volume 17, Number 4 December/2012
MARK HOELSCHER & B. ELANGO
This paper seeks to add to the literature on regional factors that drive development of new ventures. In particular, it investigates the effects of business climate, foreign population, and unemployment on new venture creation. Using state level data from the time period 2003-2007, we find that while business climate and foreign population are positively related to new venture creation, unemployment is negatively related to new venture creation. Implications of this study for fostering entrepreneurship are discussed.
New Venture Creation, Business Climate, Foreign Population, Unemployment