Audretsch and Fritsch (2002) proposed two explanations for the mixed evidence regarding the relationship between new firm formation and regional development. Firstly, they found evidence for the existence of long time lags needed before the main effects of new firm formation on employment change...

In public discussion in Germany it is often argued that jobs are mainly created in small and medium-sized firms (i.e. the Mittelstandʺ), whereas large firms tend to reduce their number of jobs. An empirical analysis for the period 1999 to 2005 with data of all western and eastern German firms...

Poor management has long been suspected as a major constraint on job creation in the manufacturing sector in low-income countries. In this sector, countless micro and small enterprises in industrial clusters account for a large share of employment. This paper examines the roles of industrial...