Venture migration, in addition to firm entry and exit, affects business stock in a region. This study draws on mainstream entrepreneurship and economic geography literatures to explore the factors explaining net venture migration. Using a data-set on 88 Ohio counties during 2000-2006, it suggests that venture migration is largely a quest for a low-hanging fruit. Relocating firms are drawn to areas with higher sales tax rates that give them access to interest-free financing, higher unemployment rates and better-qualified workforce as well as ample arbitrage opportunities. At the same time, innovative opportunities do not attract migrating ventures.
ASJC Scopus subject areas
- Business and International Management
- Economics and Econometrics