Your Entrepreneurial Ecosystem
Your Entrepreneurial Ecosystem

New Research in Health Economics!

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New research from our team is out in the Health Economics journal! Available here: https://doi.org/10.1002/hec.4242

The Article is titled “Estimating determinants of healthcare establishment locations with restricted federal administrative data. ” The abstract is below. This research contributes to our Economic Opportunity Mapping Project, in which you can interactively select different counties, regions, or states to see the types of business establishments that are currently there compared to those that an economic model predicts might be successful there.

Abstract

We model the locational determinants of nine categories of healthcare services in the contiguous United States using restricted access federal establishment data. These data enable close examination of rural health services, which are subject to suppression in publicly published data sources. After reviewing differences in public and unsuppressed restricted data and testing underlying data generation processes for each healthcare industry, including the Poisson, negative binomial, and their zero‐inflated counterparts, we estimate marginal effects for four categories of independent variables: place‐based factors, financial access, characteristics of population, and industry interdependencies. Findings show establishments are less likely to be found with high concentrations of Medicare and Medicaid recipients, while agglomerations are associated with more establishments. Nonemployer establishments serve a broader spectrum of people, but the rural poor still experience less access to health care.

EOM Discussion Guide

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So, now you know how to use the Economic Opportunity Maps, but not sure how to discuss them with community stakeholders? Check out our discussion guide here: https://communities.tamu.edu/files/2021/01/Discussion-Guide.pdf

We’ll walk you through questions that you should always ask when using secondary data, as well as discussion questions specific to the maps.

Check out the maps here: https://communities.tamu.edu/economic-opportunity-maps/.

Economic Opportunity Maps Keep Getting Better!

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Our team of researchers from across the country continues to update the Economic Opportunity Maps to improve their accuracy and to add more industries. Our research team include faculty from Texas A&M, Iowa State University, University of Wyoming, and Michigan State University.

Check out the new updates at either of the links below!

https://communities.tamu.edu/economic-opportunity-maps/

https://www.canr.msu.edu/economic_development/economic-opportunity-maps/

Economic Opportunity Maps Update!

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Our team’s Economic Opportunity Maps project has been updated! The maps have been cleared up and some details on the methods have been added.

See the embedded and interactive maps here: https://communities.tamu.edu/economic-opportunity-maps/

The project was supported by the Agricultural and Food Research Initiative Competitive Program of the USDA National Institute of Food and Agriculture (NIFA), award number 2017-67023-26242.

How Important Are Local Banks in Your Region? Read our new research here!

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Access to financial capital is vital for the sustainability of the local business sector in metropolitan and nonmetropolitan communities. Recent research on the restructuring of the financial industry from local owned banks to interstate conglomerates has raised questions about the impact on rural economies. In this paper, we begin our exploration of the Market Concentration Hypothesis and the Local Bank Hypothesis. The former proposes that there is a negative relationship between the percent of banks that are locally owned in the local economy and the rate of business births and continuations, and a positive effect on business deaths, while that latter proposes that there is a positive relationship between the percent of banks that are locally owned in the local economy and the rate of business births and continuations, and a negative effect on business deaths. To examine these hypotheses, we examine the impact of bank ownership concentration (percent of banks that are locally owned in a commuting zone) on business establishment births and deaths in metropolitan, micropolitan and non-core rural commuting zones. We employ panel regression models for the 1980-2010 time frame, demonstrating robustness to several specifications and spatial spillover effects. We find that local bank concentration is positively related to business dynamism in rural commuting zones, providing support to the importance of relational lending in rural areas, while finding support for the importance of market concentration in urban areas. The implications of this research are important for rural sociology, regional economics, and finance.

Read more here: https://ideas.repec.org/p/cen/wpaper/18-34.html

What Factors Cause Latino-owned Business to Survive? New research out

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This article uses 127,000 observations from three confidential Census microdata sets at theindividual firm and establishment level to investigate Latino-owned business survival. The merged microdataallows us to control for a wide array of personal, business, and regional characteristics. The analysis is basedon hazard model. Relative to base categories, we find the following decrease in the odds of survival: Latina-owned, Puerto Rican owned, and selling to the federal government. Owner education and low barrier sectorshave no effect, while start-up from personal savings increase the odds by 4 percent. The findings informways to expand regional economies through businesses operated by Latinos.

Read more here: https://rrs.scholasticahq.com/article/7933-factors-associated-with-latino-owned-business-survival-in-the-united-states

New Research on Latino-owned Business Growth

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Here is some new research authored by me. The article uses over 100,000 observations from limited-access and nationally representative US Census Bureau microdata sets to test determinants of employment growth among Latino-owned businesses (LOBs) in the Unites States. We draw variables from prior studies on determinants business growth in the general population and uniquely apply them to LOB using the robust data. Specifically, we examine the impact of numerous business owner, business, and regional characteristics on employment growth. We include industry and state-level fixed effects and test the robustness of results to various employment growth timespans. Some findings include (1) Latina-owned businesses grow faster than LOB, (2) formal education has a positive effect on employment growth and this effect is larger with education level and time, (3) Puerto Rican-owned businesses grow 2 percent slower than Mexican-owned establishments, (4) having multiple establishments reduces employment growth, (5) relying on personal savings for start-up capital impedes growth, and (6) nonmetro adjacency has a significant and negative effect, while population density does not. Our findings show that LOB may grow differently than other businesses and help advance the understanding of factors related to success of LOB. Implementing straightforward and low-cost policies aimed at better support for LOB could help bolster regional growth.

 

Read more at: https://doi.org/10.1177%2F0160017619826278

Results of Virtual Focus Groups on Small Businesses and Rural Communities

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The NCRCRD hosted virtual focus groups of professionals working with rural businesses (home based, retail, and manufacturing). The virtual interactions included polls and open-ended questions with participants from around the nation. Open-ended responses were analyzed with qualitative software using the community capitals as an organizing framework. Responses indicate substantial differences in business needs and challenges across sectors. The project was supported by the Agricultural and Food Research Initiative Competitive Program of the USDA National Institute of Food and Agriculture, Award number 2017-67023-26242.

March 5, 2019 – 1:00 PM (ET)
http://ncrcrd.adobeconnect.com/ncrcrd1

See the below PDF for details!

Rural Enterprise Webinar 3-5-19

AgriLife Extension economist (yours truly) leads rural military entrepreneurship study

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A team of researchers have received a $500,000 grant from the U.S. Department of Agriculture to create guidelines to better assist rural military veteran business owners.

Dr. Craig Carpenter, a Texas A&M AgriLife Extension Service economist in College Station, is leading a group looking to identify business entrepreneurship opportunities for rural U.S. military veterans.

Read the full article here: https://today.agrilife.org/2018/08/17/agrilife-extension-economist-leads-rural-military-entrepreneurship-study/

How to Determine the Best Location for Your Business and Create a Business Data Report

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The U.S. Census Bureau recently released a great video explaining how to generate a business report about your potential customers and other businesses like yours for your area or a new market using the Census Business Builder. Check it out below: