Oldřich Hájek,

Faculty of Management and Economics

Tomas Bata University in Zlin Zlin, Czech Republic

Email: hajek@fame.utb.cz

DETERMINANTS OF NEW BUSINESS FORMATION – SOME LESSONS FROM THE CZECH REPUBLIC

Jana Nekolová,

Faculty of Management and Economics

Tomas Bata University in Zlin Zlin, Czech Republic

Email:nekolova@fame.utb.cz

Jiří Novosák,

Tomas Bata University in Zlin Zlin, Czech Republic

Email: novosak@fame.utb.cz

ABSTRACT. This paper concerns with determinants of new business formation. The determinants are related to relevant theoretical concepts dealing with the issue. The Czech Re- public in the time period 2011-2012 is the area of interest. Spatial approach is used to identify the impact of the deter- minants on new business formation. Thus, the data are re- lated to 206 Czech microregions. The methods of regression analysis are employed to gain results. These show the posi- tive impact of agglomeration economies and the quality of entrepreneurial climate on new business formation. More- over, human capital and the presence of foreign-owned busi- nesses positively influence new business formation. On the contrary, the relationship between unemployment and new business formation is ambivalent. Altogether, the findings support path-dependency of new business formation with important implications for entrepreneurship policy. Finally, regression results point out the relevance of spatial spillovers in explaining variation in new business formation.

Received: January, 2015

1st Revision: March, 2015

Accepted: May, 2015

DOI:10.14254/2071-789X.2015/8-1/11

JEL Classification: R12, M13, R15

Keywords: Entrepreneurship, new business formation, OLS regression, spatial regression, the Czech Republic