Effects of entrepreneurship and entrepreneurial environment on new firm formation rate: Analysis of prefectural data in Japan
2019
Kiminami, A. (The University of Tokyo (Japan). Department of Agricultural and Resource Economics) | Kiminami, L. | Furuzawa, S.
This study clarified the effects of entrepreneurship and entrepreneurial environment on the new firm formation rate by structural equation modeling using the data of 47 prefectures in Japan. The results of analysis suggest following findings. Entrepreneurship is activated by population density and bridging social capital but deactivated by income, unemployment rate, and bonding social capital. As for promoting new firm formation, population density has a large influence on new firm formation, but unemployment rate does not simply affect new firm formation due to the cross-interaction among regional and individual factors. Bonding social capital has negative effects on new firm formation, although bridging social capital has positive effects. Furthermore, gender and age affect entrepreneurship as economic and social factors but their indirect effects on new firm formation are limited. Measures promoting new firm formation should be designed according to the types of working status, because entrepreneurship is related with working status. Finally, it is requested to facilitate the social condition for encouraging the female and aged people to participate in business activities.
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