University of St.Gallen
research platform alexandria

Entrepreneurship Differences within Switzerland - Do Taxes and Culture play a role?

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abstract Abstract:
Although Switzerland is a small country of only 7.5 million inhabitants, there exist remarkable differences in terms of population density, industry structure and presumably culture. However, there is hardly any literature on entrepreneurship differences within Switzerland. It is against this background that this paper investigates differences in start-up propensities among Swiss regions. The analysis is based on data from the adult population survey of the Global Entrepreneurship Monitor (GEM) 2005 in Switzerland (telephone survey, n=5456). The individual data from the telephone survey is combined with regional data for the 26 Cantons from official statistics.
In Switzerland the decision to start a new business is determined by person-related as well as regional variables. Most of the results are in line with the results from other countries: Education, age and em-ployment status are significant determinants of entrepreneurial activities. The level of self-employment and the regional purchasing power positively influence the start-up propensity while the rate of unemployment has a negative effect. However, there are also some idiosyncratic results: There is a large difference in terms of entrepreneurial activity between the Italian-, French- and German-speaking parts of Switzerland. Still, we could not find support for the hypotheses that there is some kind of a cultural influence. The different start-up propensities can be explained by structural characteristics of the regional economy. Taxes do not seem to influence the general level of entrepreneurial activity of the population in Swiss regions.
   
type conference paper (English)
   
keywords Entrepreneurship, regions, Switzerland, Global Entrepreneurship Monitor
   
name of conference AAG Annual Meeting (Boston, MA, USA)
date of conference 17-4-2008
review external review
   
citation Bergmann, H. (2008). Entrepreneurship Differences within Switzerland - Do Taxes and Culture play a role?. In .