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Market-Based Solutions to Vital Economic Issues
Research
Jan 1, 2012

Dealmakers in Place: Social Capital Connections in Regional Entrepreneurial Economies

Abstract

This paper examines the internal anatomy of regional social capital and develops a role for dealmakers – individuals who provide active regional stewardship. An empirical analysis of twelve US regions finds great variation in the presence of dealmakers. The strong local presence of dealmakers is correlated with high start-up rates. The empirical results suggest that the local presence of dealmakers is more important for successful entrepreneurship than aggregate measures of regional entrepreneurial and investors network. Moreover, it is found that the presence of dealmakers is a better predictor of the status of the regional entrepreneurial economy.

Note: Research papers posted on SSRN, including any findings, may differ from the final version chosen for publication in academic journals.


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