The Long Persistence of Regional Levels of Entrepreneurship: Germany, 1925—2005

Abstract

We investigate the persistent levels of self-employment and new business formation in different time periods and under different framework conditions. The analysis shows that regional differences regarding the level of self-employment and new business formation tend to be persistent for periods as long as 80 years, despite abrupt and drastic changes in the political-economic environment. This pronounced persistence demonstrates the existence of regional entrepreneurship culture that tends to have long-lasting effects.