Determinants of regional entrepreneurship dynamics in contemporary Germany:: A conceptual and empirical analysis

The importance of entrepreneurship for the development of national and regional economies is widely recognized. Although politicians in Germany are aware of entrepreneurship, their practices cannot rely on a generally accepted theory of entrepreneurship. The paper develops a holistic conceptualization of regional entrepreneurship dynamics and investigates empirically determinants of start-up activities and new business success in selected German regions. It uses two primary data sets explicitly designed to analyse regional entrepreneurship dynamics in contemporary Germany. The research project 'Regional Entrepreneurship Monitor' focuses on determinants of start-up activities in the pre-entry phase of entrepreneurial processes, while the 'New Firm Survey' examines factors influencing post-entry firm success. The paper suggests holistic approaches in entrepreneurship research are necessary, because entrepreneur-associated factors, characteristics of the newly founded firm and the geographical environment influence entrepreneurial processes. These determinants can have direct or indirect influences on entrepreneurial processes. The results suggest that politicians and policy-makers need to pay special attention to entrepreneurial attitudes and behaviours if they wish to boost regional entrepreneurship dynamics in Germany.