Determinants of Innovative Versus Non-Innovative Entrepreneurs in Three Southern States

Abstract

Entrepreneurship is becoming an important economic development strategy for communities across the nation. This research distinguishes between innovative and non-innovative entrepreneurs as well as “traditional” entrepreneurs—percent nonfarm proprietors of total employed—across counties in Arkansas, Louisiana, and Mississippi. Three sets of predictor variables were used to better understand the determinants of these entrepreneurs: demographic/location, infrastructure, and socioeconomic. Results indicate that innovative entrepreneurs are more sensitive to highway proximity and rurality while non-innovative are more sensitive to educational attainment, creative class, and access to broadband. Important differences surface comparing innovative versus non-innovative versus nonfarm proprietors.

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