Entrepreneurship in Small Cities: Evidence From U.S. Micropolitan Areas

Abstract

This article presents the spatial patterns of general and high-tech start-up rates and explores regional factors associated with entrepreneurship in U.S. micropolitan areas. Regression results show that general entrepreneurship in these small cities is predicted by population growth, the middle-age population group, the presence of small businesses, and natural amenities. Additionally, high-tech start-up activities are positively associated with human capital, creative knowledge (instead of technological knowledge), high-tech clustering, and proximity to a large metropolitan area. These findings are compared with the patterns in larger metropolitan areas. This research sheds light on local entrepreneurship policy in the small-city context.