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The influence of individual perceptions and the urban/rural environment on nascent entrepreneurship

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Author(s): Joan-Lluís Capelleras | Ignacio Contín-Pilart | Victor Martin-Sanchez | Martín Larraza-Kintana

Journal: Investigaciones Regionales
ISSN 1695-7253

Issue: 26;
Start page: 97;
Date: 2013;
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Keywords: nascent entrepreneurship | individual perceptions | urban/rural environment

ABSTRACT
Individual perceptions have been shown to affect the decision to start a new firm. This decision is also contingent upon the context in which actions are taken. However, not much is known about the joint impact of entrepreneurs’perceptions and the urban/rural environment where the firm is created. The purpose of this paper is to examine how nascent entrepreneurship is influenced by individual perceptions and the urban/rural context. Using data from the Spanish GEM project, the results of a series of logistic regression models indicate that opportunity perception and self-efficacy have a positive influence on the probability of becoming a nascent entrepreneur. Interestingly, we also find that individuals in rural areas who perceive new opportunities are more likely to become nascent entrepreneurs rather than those who live in urban ones.

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