Examining the black box between stimulating regions and individual entrepreneurship

This paper seeks to investigate the link between the objective regional opportunity structure (captured by regional data) and individuals’ engagement in different stages in the venture creation process (intention to start a business and engagement in nascent entrepreneurship). We further investigate pathways through which a favourable regional environment could affect entrepreneurial intentions and the propensity to be a nascent entrepreneur. We combine individual level GEM-data for Western Germany with regional level data from the statistical office and use multi-level analysis to test our hypotheses. We find support for our contention that a favourable regional opportunity structure affects entrepreneurial intentions and engagement. As pathways between the region and individual behaviour serve the individual perception of founding opportunities and the individual social capital.