The impact of new firm formation on regional development in the Netherlands |
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| Authors: | André van Stel Kashifa Suddle |
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| Institution: | (1) EIM Business and Policy Research, P.O. Box 7001, 2701 AA Zoetermeer, The Netherlands;(2) Cranfield School of Management, Cranfield University, Bedford, UK |
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| Abstract: | This paper examines the relationship between new firm formation and regional employment change in The Netherlands. Using a
new regional data base for the period 1988–2002, we examine the time lags involved in the relationship. We also investigate
whether the relationship differs by sector and by degree of urbanization. We find that the maximum effect of new businesses
on regional development is reached after about 6 years. Our results also suggest that the overall employment impact of new-firm
start-ups is positive but that the immediate employment effects may be small in The Netherlands. Furthermore, we find that
the employment impact of new firms is strongest in manufacturing industries and that the employment impact of new firms is
stronger in areas with a higher degree of urbanization.
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| Keywords: | Start-ups Entrepreneurship Regional development The Netherlands |
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