Entrepreneur location decisions across industries

Joao J.M. Ferreira*, Cristina I. Fernandes, Mario L. Raposo, Roy Thurik, Joao R. Faria

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

21 Citations (Scopus)


In this paper we analyse whether entrepreneur location decisions differ across industries and identify the factors determining the choice of location between rural and urban environments. Firm location is based on a new taxonomy developed over the influential three dimensions of Hayter’s (1997) approach. The paper uses data from sample of one thousand Portuguese firms. We present a stylized theoretical model to determine how these new five dimensions influence firm’s location and test the model through a logistic regression. Our results show that that the location decisions depend on the sector of activity, type of area (urban vs. rural) and the characteristics of the entrepreneur. We find that companies engaged in knowledge intensive business services prefer to locate in urban areas. From an institutional point of view, firms prefer to locate in rural areas.
Original languageEnglish
Pages (from-to)985-1006
Number of pages22
JournalInternational Entrepreneurship and Management Journal
Issue number4
Early online date1 Aug 2015
Publication statusPublished - 2016

Bibliographical note

Copyright Springer Science+Business Media New York 2015


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