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• W2151641946 abstract "Abstract Economic development via firm birth has recently been an important topic for many state governments. However, ways in which state governments can influence firm births are not obvious, and their efficiency in fostering firm births in comparison to their peers is even less so. Focusing on the birth of small firms in the contiguous US, regression analysis and non-parametric efficiency testing are employed to determine both the expenditures state governments can target to indirectly promote small firm birth and their relative efficiency in utilizing these expenditures. The regression results reveal three significant expenditure inputs and one significant controlling factor in determining firm birth, while the efficiency tests regarding states’ use of these expenditure inputs give insight as to how they compare to their peers in terms of efficient target expenditure use. 1. Introduction and Background Over the past century, firm births have been increasingly credited for advances in technological innovation, job creation, and consequently regional economic growth and development (Schumpeter, 1934; Birch, 1981; Kirchkoff and Philips, 1988; Reynolds and Maki, 1990; Davidsson et al., 1994; Reynolds, 1994; Luger and Koo, 2003). These contributions are not sufficient in themselves to merit the attention firm births have received over firm expansions, since firm expansions likewise create jobs and subsequently promote regional growth. Kirchhoff and Phillips (1988) discovered that from 1976 to 1984, firm births accounted for 74% of new job creation, while expansions were responsible for only the remaining 26%. With firm births creating nearly three times as many jobs as expansions, the focus placed on fostering firm birth by local and state governments appears warranted. Since firms births are often considered a significant indicator regarding a state’s performance in terms of fostering business development, there is no doubt state governments have made promoting firm birth and the retention of businesses a major topic of interest. Birley (1986) contends governments at all levels have incorporated strategies to foster entrepreneurial activity and firm birth. Baumol (2002) also asserts that both politicians and practitioners are" @default.
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• W2151641946 date "2007-01-01" @default.
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• W2151641946 title "Is Degree of Rurality More Crucial to Small Firm Births than Access to Incubators? An Analysis of States' Relative Efficiencies in Promoting the Birth of Small Firms" @default.
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