Measures of entrepreneurship, such as average establishment size and the prevalence of start-ups, correlate strongly … instrument for our entrepreneurship measures and find a persistent link between entrepreneurship and city employment growth; this …

. A second class of theories hypothesizes that some places are endowed with a greater supply of entrepreneurship. Evidence … on sales per worker does not support the higher returns for entrepreneurship rationale. Our evidence suggests that … entrepreneurship is higher when fixed costs are lower and when there are more entrepreneurial people. …