The direct and indirect effects of new businesses on regional employment: an empirical analysis
by Michael Fritsch, Florian Noseleit, Yvonne Schindele
International Journal of Entrepreneurship and Small Business (IJESB), Vol. 10, No. 1, 2010

Abstract: We analyse the different types of effects that new businesses may have on regional employment. One of these effects is the direct contribution of employment in the new businesses to overall employment. We also estimate the indirect effect of new business formation on incumbent employment. We find pronounced differences between regions with regard to the two effects. Effects of new business formation on incumbent employment are considerably larger than the direct contribution of new businesses to employment.

Online publication date: Fri, 07-May-2010

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