Entrepreneurship in Urban and Rural Switzerland: Similar or Worlds Apart?

Abstract

This contribution deals with entrepreneurial activities in urban and rural areas in Switzerland. It is the aim to identify differences in the entrepreneurial process between urban and rural regions of the country. The paper builds on a conceptual framework that identifies three stages in the entrepreneurial process. Differences between urban and rural areas are investigated in all three stages by applying an explorative methodology that is based on two datasets: First, data from the GEM-surveys 2005 and 2007 in Switzerland is used to conduct separate logistic regression models in urban and rural areas in order to analyze influencing factors for entrepreneurial activities on the individual level. Second, a descriptive analysis of the Swiss statistics of company demographics (UDEMO) is used to identify differences between urban and rural new firm establishments. The findings of the contribution suggest that there are differences between entrepreneurial activities in rural and urban areas in Switzerland. In the first stage of the entrepreneurial process, people in rural areas less frequently see good opportunities for starting a business than urban residents. In the second stage, common models on influencing factors for entrepreneurship fit only in urban areas, while influencing factors in rural areas are more difficult to determine. On the venture level in the third stage of the entrepreneurial process, urban establishments more often apply new technologies and processes than their rural counterparts. Based on this evidence we derive some recommendations for future research.

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