Entrepreneurial Governance and Local Growth

Do local development policies influence local employment growth? Based on a survey to municipal managers in all Swedish municipalities, this is one of the first studies to empirically assess the relationship between reported local development initiatives (entrepreneurial governance (EG)) and growth...

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Bibliographic Details
Published in:Sustainability 2020, Vol.12 (9), p.3857
Main Authors: Olsson, Amy Rader, Westlund, Hans, Larsson, Johan P.
Format: Article
Language:English
Subjects:
Collective action
Economic development
Employment
entrepreneur
Entrepreneurial governance
Entrepreneurs
Entrepreneurship
governance approach
Innovations
Local growth policy
Municipal entrepreneurship
Municipalities
Political entrepreneurship
Political science
Public sector
rural area
Rural areas
Sweden
urban growth
urban population
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Summary:Do local development policies influence local employment growth? Based on a survey to municipal managers in all Swedish municipalities, this is one of the first studies to empirically assess the relationship between reported local development initiatives (entrepreneurial governance (EG)) and growth of local employment. We find a weak but significant association between EG and employment growth for urban municipalities. This suggests that EG is more effective in larger, growing municipalities than in smaller, declining rural areas. Urban municipalities may of course have more resources for entrepreneurial governance than rural ones as they have grown substantially faster for a long period of time. The result thus indicates that EG and growth are in a positive interplay of interaction. When the EG index was divided into three sub-indexes after the entrepreneurial process (discover or create opportunities, collect resources and exploit opportunities) the analyses also showed positive correspondence between some sub-indexes and employment growth for the rural municipalities, indicating that EG is not solely a phenomenon connected to growth in urban, growing municipalities. In sum, the article indicates several avenues through which entrepreneurial governance at local level might be linked to local growth.
ISSN:2071-1050
2071-1050
DOI:10.3390/su12093857