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Some US counties are more likely to generate entrepreneurial opportunities. This paper aims to determine whether US micropolitan counties with disproportionately high nonfarm proprietorship (NFP) employment levels are systematically linked to specific attributes of the entrepreneurial ecosystem. A limited amount of research has been conducted on the geography of entrepreneurship in small to medium-sized micropolitan counties where rates of growth and change can be quite dramatic.

NFP employment data from the US Bureau of Economic Analysis (BEA) is used as a dependent variable proxy for entrepreneurship. NFP data are widely used in the entrepreneurship literature. Data on all independent variables were obtained from the US Census Bureau’s American Community Survey and BEA by county and subject to stepwise linear regression.

Results revealed a strong positive relationship between the percent of NFP employment by micropolitan county and percent construction employment, percent real estate, and rental and leasing employment, and the percent elderly. It is argued that the combination of predictors captures primarily a self-employment of opportunity (e.g., thriving land and real estate markets).

In attempting to encourage NFP employment, policymakers should be more alert to the key predictors that shape micropolitan entrepreneurial ecosystems when attempting to enhance competitive advantage in small- to medium-sized communities. Better understanding how micropolitan counties function relative to larger metropolitan places can help local policymakers more efficiently enhance the overall quality of life in smaller communities.

The focus on smaller micropolitan communities and the explicit spatial context of this paper has sometimes been overlooked in the traditional entrepreneurship literature and this research helps to fill that gap.

Some US counties are more likely to generate entrepreneurial opportunities than others. This paper aims to determine the linkages between US counties with disproportionately high shares of entrepreneurs and specific attributes of the entrepreneurial support system.

Non-farm proprietorship (NFP) has been used as a proxy for entrepreneurship and self-employment. NFP employment data were collected from the US Bureau of Economic Analysis by county. Data on all independent variables were obtained from the US Census and Bureau of Economic Analysis by county and subject to stepwise linear regression analysis.

Results revealed a strong positive relationship between the percent of NFP employment by county and the percent real estate, rental and leasing employment and construction employment as well as percent Hispanic and median age.

In attempting to encourage NFP employment, policymakers should be more aware of the key predictors that shape county-wide entrepreneurial ecosystems to enhance competitive advantage. Better understanding of the needs and experiences of different types of entrepreneurs and ecosystems can enhance overall quality of life and economic opportunity levels in a community.

The explicit spatial context of this paper has sometimes been overlooked in the traditional entrepreneurship literature, as such, this paper helps fill that gap. The findings provide a disaggregated analysis that can help better understand the key predictors that can drive the local choices of entrepreneurs and help local policymakers to build more competitive communities.

The entrepreneurial process is a result of an interaction between an individual entrepreneur and the surrounding entrepreneurial ecosystem. The purpose of this paper is to determine whether US metropolitan areas with disproportionately high shares of entrepreneurs are systematically linked to particular attributes of the entrepreneurial support system?

In this paper, non-farm proprietorship (NFP) employment data from the US Bureau of Economic Analysis is used as a dependent variable proxy for entrepreneurship. NFP data are widely used in the entrepreneurship literature. Data on all independent variables were obtained from the Census Bureau’s American Community Survey and the Bureau of Labor Statistics by metropolitan area and subject to a stepwise linear regression analysis.

The relative share of NFP employment by metropolitan area exhibited a strong positive relationship with percentage of employment in finance, insurance and real estate, median age, percentage of Hispanic population and median home value. It is argued that the combination of significant predictors captures both out-of-necessity self-employment (e.g. low-skilled Hispanic and aging populations) and a self-employment of opportunity (e.g. access to capital).

Public policies focused on nurturing entrepreneurial ecosystems must account for these divergent explanatory frameworks when attempting to encourage NFP employment.

The paper has an explicit spatial context that tends to be overlooked in the traditional entrepreneurship literature. The focus on out-of-necessity versus opportunity-based entrepreneurship, and how it is shaped by some key predictors at the metropolitan scale, is a relatively new angle.