Abstract

Spatial variations in entrepreneurial activity have been shown to be a time persistent phenomenon in many countries. This paper analyses how these spatial variations have been affected by the recent financial crisis within the context of theories of regional resilience and adaptability. The analysis applies Exploratory Spatial Data Analysis techniques to data on firm births across Local Authority Districts of Great Britain during the period 2004–2012. The results demonstrate that, whilst the overall shape of the spatial distribution of firm births remained persistent, there is evidence of an increase in regional inequality. This is primarily associated with a divergence between London and the rest of the distribution. London, together with part of its surrounding area, appears to constitute a resilient entrepreneurial regime that has generated a dynamic, adaptive response to the crisis with high rates of new firm formation in contrast to other regions which have remained locked into lower rates of entrepreneurship. This supports the view that regional entrepreneurship is a path dependent process: entrepreneurial regions are more adaptable to the effects of an exogenous shock than less entrepreneurial regions. Accordingly, entrepreneurship is a critical factor influencing the resilience of regions in responding to an economic crisis.

DOI

10.1080/08985626.2016.1257073

Publication Date

2016-11-28

Publication Title

Entrepreneurship & Regional Development

Publisher

Informa UK Limited

ISSN

1464-5114

Embargo Period

2024-11-19

Comments

Peer review statement: The publishing and review policy for this title is described in its Aims & Scope, url: http://www.tandfonline.com/action/journalInformation?show=aimsScope&journalCode=tepn20

First Page

1

Last Page

23

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