scholarly journals Banks and new firm formation

2015 ◽  
Vol 22 (4) ◽  
pp. 734-761 ◽  
Author(s):  
Mikaela Backman
Keyword(s):  
Cross Sectional ◽  
Firm Formation ◽  
Content Type ◽  
Bank Branches ◽  
New Firm Formation ◽  
Variable Approach ◽  
Urban Rural ◽  
New Firm ◽  
Per Capita ◽  
Start Ups

Purpose – The purpose of this paper is to give a nuanced picture of how the local bank sector influences new firm formation and how this differs along the urban-rural hierarchy. Thus, the present paper increases the knowledge concerning the importance of the local bank sector in influencing new firm formation. In this respect, it also sheds light on how banks influence regional growth through their impact on start-ups. Design/methodology/approach – The empirical design is based on a cross-sectional approach from 2010, where Swedish municipalities are employed as the unit of observation. To overcome a possible endogeneity problem, an instrumental variable approach is applied. A two-stage least squares approach is employed in which instruments for the local bank sector in 2010 are utilised. Findings – The findings present positive relationships among the average size of the bank branches, independent banks per capita, bank branches per capita, bank competition, and the number of local start-ups in Sweden. Hence, access to financial funds is important for new firm formation. When the sample is divided across the urban-rural hierarchy, differences arise concerning the importance of the local bank sector. Independent banks per capita and bank branches per capita tend to have a larger impact on firm formation in rural municipalities. Originality/value – This paper is novel in its detailed approach to describing the local bank sector. This topic is important for local and national policy makers, demonstrating the importance of the local bank sector for a growing and healthy regional economy. This study is also the first study on this topic in Sweden.

scholarly journals The effect of bank branch closures on new firm formation: the Swedish case

2020 ◽  
Vol 65 (2) ◽  
pp. 319-350
Author(s):  
Cynthia Sin Tian Ho ◽  
Björn Berggren
Keyword(s):  
Fixed Effects ◽  
Housing Price ◽  
Firm Formation ◽  
Bank Branch ◽  
Bank Branches ◽  
New Firm Formation ◽  
Lack Of Information ◽  
New Firm ◽  
Growth Change ◽  
Industry Structures

Abstract In this paper, the effect of local bank branch closures on new firm formation in Sweden is analysed using a panel database that captures the geographical locations of all Swedish bank branches in 2007 and 2013. The previous research has shown that the further a firm is located away from the bank, the higher the monitoring costs will be for the banks. Furthermore, an increase in the distance to the banks will also increase information asymmetry because of the banks’ eroded ability to collect and analyse soft information. Due to the high risks associated with the lack of information and uncertainty, banks might not be as willing to extend credits to a distant firm compared to a nearby firm. Using spatial econometric analysis at a municipal level, it is shown that bank proximity to firms, unemployment rate, industry structures, income growth, change in housing price and percentage of immigrants are vital for new firm formation in Sweden. From the spatial Durbin model with fixed effects, an increase in the weighted distance to the nearest bank branches is shown to affect new firm formation negatively.

How Can We Reap the Fruits of Academic Research in Biotechnology? in Search of Critical Success Factors in Policies for New-Firm Formation

10.1068/c0133 ◽  
2003 ◽  
Vol 21 (1) ◽  
pp. 139-155 ◽  
Author(s):  
Marina van Geenhuizen
Keyword(s):  
Critical Success Factors ◽  
Success Factors ◽  
Academic Research ◽  
Institutional Setting ◽  
Firm Formation ◽  
Critical Success ◽  
New Firm Formation ◽  
New Firm ◽  
The Government ◽  
Start Ups

There is often a gap between the creation of knowledge and the use of new knowledge in the economy, a situation which has pushed many governments to establish programmes for knowledge transfer and new-firm formation. I examine the initiatives taken by the government in the Netherlands to advance new-firm formation in biotechnology. Drawing on experience in entrepreneurship—its institutional setting in general, and more specifically on developments in biotechnology start-ups—I aim to identify critical success factors for this policy. The policy seems promising in covering all development stages of start-up firms and in using a network approach—with implementation by an intermediary organisation as a solution for coordination problems. The low popularity of entrepreneurship, including some negative regulatory factors in biotechnology, and the danger of the policy focusing on the top innovative start-ups are threats to success. Other threats may be a fragmentation of ferees and a narrow focus on a national situation rather than cooperation with adjacent countries. I suggest a number of critical success factors that can be used in policies to enhance new-firm formation in biotechnology, and indicate some lines for further research.

Homeownership and entrepreneurship

2019 ◽  
Vol 12 (3) ◽  
pp. 456-473 ◽  
Author(s):  
Bjorn Berggren ◽  
Andreas Fili ◽  
Mats Wilhelmsson
Keyword(s):  
House Prices ◽  
Business Services ◽  
Firm Formation ◽  
Content Type ◽  
New Firm Formation ◽  
Financial Infrastructure ◽  
New Firm ◽  
The Relationship ◽  
Business To Business ◽  
Positive Effect

Purpose The purpose of this paper is to analyze the relationship between housing markets and new firm formation in six different industries in all 284 municipalities in Sweden. Design/methodology/approach The authors have used data from Statistics Sweden and The Swedish Agency for Economic and Regional Growth to develop a model to analyze the relationship between house prices and industry-specific new firm formation, with the interaction effect of financial infrastructure. Findings In the data, stable high house prices have no effect on entrepreneurship. However, a market with rising house prices has a positive effect on new firm formation, in retail, construction, business-to-business services and miscellaneous sectors, but produced no effect in either mining, agriculture and fishing or in manufacturing. The interaction between rising house prices and financial infrastructure does not change the positive effect on retail, business-to-business services and miscellaneous sectors, but within the construction industry, the positive effect on new firm formation disappears. In manufacturing, the authors observe the opposite – a positive effect, instead of no effect previously. Originality/value The contribution of this study is to provide evidence of how house prices are associated with entrepreneurship in different industries, as well as analyzing how the interaction between house prices and financial infrastructure is associated with entrepreneurship. By separating observations in time, endogeneity is controlled and a causal relationship where higher house prices is postulated, which leads to an increase in entrepreneurial activity in different industries. By using a spatial Durbin model, the authors control for spatial dependency.

scholarly journals AN ANALYSIS OF THE RELATIONSHIP BETWEEN NEW FIRM FORMATION AND ECONOMIC DEVELOPMENT IN THE NORTHEAST REGION OF THE UNITED STATES

2011 ◽  
Vol 16 (03) ◽  
pp. 289-306 ◽  
Author(s):  
SAIMA BASHIR ◽  
TESFA GEBREMEDHIN
Keyword(s):  
United States ◽  
Economic Development ◽  
Population Density ◽  
Capita Income ◽  
The United States ◽  
Firm Formation ◽  
Northeast Region ◽  
New Firm Formation ◽  
New Firm ◽  
Per Capita

The overall objective of this study is to provide policy makers identifies and estimates the role and impacts of new firm formation in the Northeast region of the United States. The empirical model of this study is derived from the three-equation simultaneous model of Deller et al. (2001). In this study, Three-Stage Least Squares (3SLS) method is used to estimate the simultaneous equations model. The research findings indicate that population density and per capita income have a positive link with new firm formation. Higher population density and per capita income encourage entrepreneurs to start new firms in the region. This leads to an increase of new jobs, which is a positive contribution to economic development in the Northeast region.

scholarly journals Do local start-ups and knowledge spillovers matter for firm-level R&D investment?

Urban Studies ◽  
2021 ◽  
pp. 004209802199510
Author(s):  
Frank Crowley ◽  
Declan Jordan
Keyword(s):  
Knowledge Spillovers ◽  
Negative Association ◽  
Firm Level ◽  
Firm Formation ◽  
New Firm Formation ◽  
Level Data ◽  
New Firm ◽  
Start Ups ◽  
The Relationship ◽  
D Investment

What happens to firm-level research and development (R&D) when urban locations have more knowledge spillovers and are more entrepreneurial? This article explores the potential tension between knowledge spillovers, start-ups and innovation effort in existing firms. The relationship is empirically tested using Swedish firm-level data and municipality-level data on start-ups. The results indicate that having more start-ups in urban municipalities is associated with lower firm-level R&D expenditure. However, this relationship is not linear, where the negative association between the level of new firm formation and firm-level R&D expenditure decreases with scale. This suggests that the relationship between local entrepreneurship and a business’ R&D decisions is conditioned by the extent of that entrepreneurship.

Transfer-based decentralisation, economic growth and spatial inequality: Evidence from China’s 2002–2003 tax sharing reform

Urban Studies ◽  
2019 ◽  
Vol 57 (4) ◽  
pp. 806-826
Author(s):  
Fan Fan ◽  
Ming Li ◽  
Ran Tao ◽  
Dali Yang
Keyword(s):  
Economic Growth ◽  
Local Governments ◽  
Central Government ◽  
Value Added ◽  
Spatial Inequality ◽  
Variable Approach ◽  
Interregional Inequality ◽  
Urban Rural ◽  
Per Capita ◽  
Tax Sharing

China has adopted a transfer-based fiscal decentralisation scheme since the mid-1990s. In the 1994 tax sharing reform, the central government significantly raised its share of government revenue vis-à-vis local governments by taking most of the newly created value-added tax on manufacturing. One aim for the adoption of the transfer-based fiscal scheme was to channel more funds to less developed regions and rural areas, and to alleviate growing interregional inequality and urban–rural income disparity. In 2002 and 2003 the Chinese central government further grabbed 50% and 60%, respectively, of the income taxes previously assigned only to local governments while providing more fiscal transfers to the country’s poor regions and the countryside. Utilising the 2002–2003 change in China’s central–local tax sharing regime as an exogenous policy shock, we employ a Simulated Instrumental Variable approach to causally evaluate the effects of the policy shock on growth, interregional inequality and urban–rural disparity. We find the lower local tax share dis-incentivised local governments and led to lower growth. Although higher central transfers helped to reduce interregional inequalities in per capita GDP and per capita income, the equalising effects were only present for urban incomes. We argue that transfer-based decentralisation without bottom-up accountability was detrimental to economic growth and had limited impact on income redistribution.

New Firm Formation and Regional Development in Sweden

1994 ◽  
Vol 28 (4) ◽  
pp. 395-410 ◽  
Author(s):  
Per Davidsson ◽  
Leif Lindmark ◽  
Christer Olofsson
Keyword(s):  
Regional Development ◽  
Firm Formation ◽  
New Firm Formation ◽  
New Firm
Sign in / Sign up

Export Citation Format

Share Document