Abstract

In various studies it is found that regional variation in entrepreneurship is significant and persistent (see e.g. Parker, 2005; Fritsch and Mueller 2006). This means that regional conditions may represent incentives or obstacles for potential entrepreneurs, thus affecting (i) their intention to start a firm and (ii) their entrepreneurial behavior (performance). This proposition calls for assessing the effect of regional conditions (macro) to individual entrepreneurial behavior (micro).

However, up to now the analysis on determinants of entrepreneurship has focused either on macro-macro analysis (linking regional conditions to regional levels of entrepreneurship) or micro-micro analysis (linking personal characteristics to involvement in entrepreneurship and/or post-entry performance). There are a few exceptions, e.g. Wagner and Sternberg (2004); Fritsch, Brixy and Falck (2006). In this paper we explain several types of micro-level entrepreneurial behavior by a variety of macro-level (regional) characteristics, including regional measures of entrepreneurial attitudes. We hypothesize that the degree of perceived opportunities in the region can be regarded as a regional characteristic and is as such a determinant of micro entrepreneurial behavior.

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