Determinants of new business formation – some lessons from the Czech Republic

Information
Title: Determinants of new business formation – some lessons from the Czech Republic
Issue: Vol. 8, No 1, 2015
Published date: 20-05-2015 (print) / 20-05-2015 (online)
Journal: Economics & Sociology
ISSN: 2071-789X, eISSN: 2306-3459
Authors: Oldřich Hájek
Jana Nekolová
Jiří Novosák
Keywords: Entrepreneurship, new business formation, OLS regression, spatial regression, the Czech Republic
DOI: 10.14254/2071-789X.2015/8-1/11
DOAJ: https://doaj.org/article/438efa04bda24039a8cef844b634f6e6
Language: English
Pages: 147-156 (10)
JEL classification: R12, M13, R15
Website: https://www.economics-sociology.eu/?315,en_determinants-of-new-business-formation-%E2%80%93-some-lessons-from-the-czech-republic
File https://www.economics-sociology.eu/files/ES_Vol8_1_Hajek.pdf
Abstract

This paper concerns with determinants of new business formation. The determinants are related to relevant theoretical concepts dealing with the issue. The Czech Re- public in the time period 2011-2012 is the area of interest. Spatial approach is used to identify the impact of the deter- minants on new business formation. Thus, the data are re- lated to 206 Czech microregions. The methods of regression analysis are employed to gain results. These show the posi- tive impact of agglomeration economies and the quality of entrepreneurial climate on new business formation. More- over, human capital and the presence of foreign-owned busi- nesses positively influence new business formation. On the contrary, the relationship between unemployment and new business formation is ambivalent. Altogether, the findings support path-dependency of new business formation with important implications for entrepreneurship policy. Finally, regression results point out the relevance of spatial spillovers in explaining variation in new business formation.