Page 101 - 1-Entrepreneurship and Local Economic Development by Norman Walzer (z-lib.org)

90 Jason Henderson, Sarah A. Low, and Stephan Weiler

Figure 5.6. Self-Employment by Occupation by Metropolitan Status

WHAT REGIONAL FACTORS DRIVE ENTREPRENEURIAL
BREADTH AND DEPTH?

The mapping and statistics analyzed thus far reveal substantial variation in the
quantity and economic value of entrepreneurs across U.S. counties. The con-
trasting patterns of entrepreneurial breadth and depth measures by metropol-
itan and nonmetropolitan counties in particular suggest the forces associated
with entrepreneurial quantity and value are different. Regression analysis at the
county level is therefore used to identify the regional factors that are related to
entrepreneurial breadth and depth measures, focusing on those related to hu-
man capital, natural amenities, financial capital, infrastructure, and local econ-
omy size. Table 5.1 in the appendix shows variable definitions and sources.

Human Capital
One of the most unique and important features of entrepreneurs is the
set of skills and ideas, or human capital, they bring to their enterprises. In
entrepreneurial research literature, the distinction between entrepreneurs
and nonentrepreneurs is often based on their traits and/or behaviors (Gart-
ner 1988), which in turn are shaped by their human capital. Various mea-
sures of human capital have in fact been found to be highly related to en-
trepreneurship. Educational attainment is one measure of human capital
that is expected to be related to entrepreneurship, as both knowledge and
critical thinking skills are invaluable to an entrepreneur. Prior research in-