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. © Southern Regional Science Association 2012.