Support local entrepreneurs if you want to attract entrepreneurs

by Ryan Streeter on April 30, 2013. Follow Ryan on Twitter.

Want more entrepreneurs to move to your city? You need to make sure you’re supporting local entrepreneurs first. That’s one finding in this interesting and easy-to-read study by Chatterji, Glaeser, and Kerr, in which they write:

[A] strong and growing literature points out that regions may differ in the extent to which their general population is inclined towards entrepreneurship. Several studies have documented that entrepreneurs tend to disproportionately found their companies in their regions of birth, and that these business are in fact stronger on average than the businesses of the typical migrating entrepreneur.

This does not mean that you shouldn’t try to attract entrepreneurs from outside. It only means you need to take home-grown entrepreneurship seriously if you want to create an environment appealing to entrepreneurs you hope will move to your city.