Increasing the Rate of New Venture Creation: Does Location Matter?
Date of this version
development economics; economic aspects; economic development; economic indicators; efficient market theory; evaluation; going public (securities); industrialization; industrial location; liquidity (economics); regional economics; research; strategic alliances (business); venture capital
The article discusses research relating to the impact of location on increasing the rate of new venture creation. Liquidity evens such as initial public offerings (IPO) and acquisitions of new ventures do appear to increase the likelihood that new ventures will form in a metropolitan region. The research clearly demonstrates the potentially important role that liquidity events, wealth creation, and state regulations play in the founding rates of new ventures in metro areas. Regional economic development may be due to the presence of supporting companies with the potential to have liquidity events to help jump-start new venture clusters.
The Academy of Management Executive