Why do entrepreneurial individuals locate in non-metropolitan regions?

Abstract

This paper analyses the dynamics of personal location choices of entrepreneurs in five European non-metropolitan regions. We started with the research question as to why these highly talented and creative individuals, who could live almost anywhere in the world, chose non-metropolitan regions, instead of the vibrant urban agglomerations with multiple (business) opportunities. The analysis showed that regional embeddedness, quality of life factors (amenities), combined with a specific entrepreneurial climate, contributed to these choices. Furthermore, different types of entrepreneurs exhibited distinct location choices. On the one hand, entrepreneurs in creative industries valued an open and tolerant neighbourhood coupled with cultural amenities and qualities of the natural environment. On the other hand, entrepreneurs in other economic sectors and sciences appreciated the more traditional factors of good schools, business opportunities and an attractive housing market.