The availability of energy is important for the creation on new businesses (Winzer 2012). Thus, we expect a significant relationship to exist between energy usage and new business creation. We argue that the importance of this relationship differ between developed and developing countries. Furthermore, we argue that this difference may depend on whether energy is produced via large public plants (centralized energy), or via small privately owned methods (distributed energy). In fact, the reliability and costs associated with these two types of energy generation technologies have been shown to differ (Stern, 2011). Our rationale is that while in developed countries, large plants allow for the exploitation of economies of scale, in developing countries smaller scale methods deliver energy more reliably.
Pierre, Kiven; Minniti, Maria; and Moss, Todd
"ENTREPRENEURSHIP AND THE ENERGY- ECONOMIC GROWTH NEXUS (SUMMARY),"
Frontiers of Entrepreneurship Research: Vol. 35
, Article 10.
Available at: http://digitalknowledge.babson.edu/fer/vol35/iss11/10