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Entrepreneurial structure qualitative analysis: the case of Seville (Spain).

Article Excerpt
Abstract In the field of territorial economic growth, it is possible to identify important characteristics in the entrepreneurial structure, such as the structure of the size of firms, main activity sectors, or the degree of innovation. However, other lesser known characteristics are important also, such as functional dependency, which considers the relationship between small and medium enterprises (SMEs), and suppliers and clients belonging to any territorial field or productive dependency, which considers the level of concentration in terms of buying and selling in connection with the main suppliers and clients, respectively. In order to empirically contrast the importance of these entrepreneurial characteristics and try to relate them with territorial economic growth, a sample of 400 enterprises in the province of Seville (Spain) is used.

Keywords Entrepreneurship * Entrepreneurial structure * Qualitative characteristics of firms * Territorial economic growth

JEL Classification D21 * O10 * R10

Introduction

In the wide field of entrepreneurship, it is possible to distinguish between two aspects of analysis: the entrepreneur and the enterprise. In recent years, some researchers have paid attention to this second field of entrepreneurship and have analysed the relationship between entrepreneurship and economic growth (Friis et al. 2002; Holcombe 1998, p. 45-62; Wennekers and Thurik 1999, pp. 27-56). They have contributed to the development of the field of research in which this paper is framed. It is focused on entrepreneurial structure quality as an essential factor in the understanding of territorial economic growth.

Quality of Entrepreneurial Structure

There is little theoretical or empirical background in macro analysis of entrepreneurial structure. Perhaps, the closest approach could be the input-output analysis of the productive system. Nevertheless, this kind of research is based not on the entrepreneurial element but on the productive sectors instead. Therefore, it does not take into account the typology or the characteristics of the enterprises which make up each production sector.

The shortage of background knowledge on the macro approach to entrepreneurial activity is not surprising. The traditional theories on economic growth (Solow 1956, pp. 65-94), including the most advanced models on endogenous growth (Romer 1994, pp. 3-22), do not specifically consider entrepreneurship in relation to the variables which explain the process of economic growth.

Despite modem endogenous models (taking into account the general ideas of Schumpeter (1967) on entrepreneurial innovation, the incorporation of the technological process and the advance in knowledge), the entrepreneur's role is not specified in the implementation of new technology in the productive mechanism. Implicitly, one assumes that any innovation created in some research centres is automatically incorporated into the production process. Nevertheless, it is necessary to take into account that it is always essential for any enterprise to act...