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 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.

Economic Opportunity Maps Entering Testing Phase

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My Economic Opportunity Maps project is entering its testing phase!

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.

New Research on the Importance of Local Banks to Rural Communities!

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Access to financial capital is vital for the sustainability of the local business sector. Recent
research on the restructuring of the financial industry from local owned banks to interstate conglomerates
has raised questions about the impact on local economies, especially in rural areas. We examine the im-
pact of bank ownership concentration on business formations, continuations, and deaths in metropolitan,
micropolitan, and rural U.S. counties. Using limited-access Census data, we find that local bank
concentration is positively related to business births and deaths, or churn, in rural counties, but the opposite
effects occur in metropolitan areas.
Read more here:

New Research on the Positive Effects of Latino-owned Businesses!

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The expansion of ethnic minorities evokes policy debate about their impact on the local economy, driving a need to measure their effects. We employ the confidential US Census data to investigate drivers of local economic performance with emphasis on the role of Latino-owned businesses (LOB) on convergence. The model also includes a number of controls. The model produces direct, indirect, and total impact estimates, and expected values for the non-LOB controls. The estimated total impact of LOB employment on county-level average annual growth rates is significant and positive, but a rurality interaction carries the opposite sign, such that the total impact in rural areas is negative.

Read the full article here: https://link.springer.com/article/10.1007/s00168-019-00942-x

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

New Opportunity for a Postdoctoral Research Associate

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Link to Application: https://wit.twc.state.tx.us/WORKINTEXAS/wtx?u=1549666497939&pageid=EM_JP_JOB_DETAILS&id=5404791

 Applicants are instructed to email items stipulated in the posting to roxanne.moody@tamu.edu

Detailed Position Summary:

Texas A&M AgriLife Extension Service and Texas Federal Statistical Research Data (FSRDC) seek a forthcoming or recent PhD as a Postdoctoral Research and Extension Associate to explore the business dynamics of rural businesses in the United States, with particular attention to entrepreneurial activities conducted by military veterans (“vetrepreneurs”). The associate will collaborate with a research team comprised of senior researchers and Extension professionals from Texas A&M AgriLife, Texas A&M University, and Baylor University on a research project conducted with the Federal Statistical Research Data Centers.

In the FSRDC, the associate will work with the Longitudinal Business Database (over 8M observations annually), the Integrated Longitudinal Business Database (over 20M observations annually), the Survey of Business Owners (about 1M observations quinquennially), the Annual Survey of Entrepreneurs (about 0.2M annually), and the American Community Survey (about 5M observations annually), among other datasets. These databases will allow for tracking of business and business owner demographic microdata over time. They will also be merged with public data on other community characteristics. Following initial data management activities, the associate will execute the following activities:

  • Model specification analysis and discussion in the FSRDC
  • Prepare and collaborate on numerous refereed journal articles including, but not limited to, the following broad topics:
    • Perceptions of U.S. vetrepreneurs
    • Determinants of vetrepreneur business survival
    • Determinants of veterpreneur business growth
    • Rural policy implications for supporting veteran-owned businesses
    • Impacts of vetrepreneurs on local economic growth
    • Nationwide lessons-learned for Extension veteran-owned business curriculums
  • Actively engage with the research team to develop Extension curriculum, programming, and training
  • Contributions to proposal development workshops and Texas RDC research presentations
  • Participate in development and completion of additional FSRDC projects
  • May participate in proposals to obtain external funding

 

The position will be appointed for twelve months, and pending performance review, extended up to 24 months. Through the experience with the research team and the FSRDC, the associate will complement the strong disciplinary training of their PhD program with exposure to a broad range of sciences and learning-by-doing in rural development Extension curriculum design and pilot testing.

The position will be located in College Station, Texas, though the Extension programming will be nationwide, allowing the successful candidate to build a national profile.

At the end of their post-doctoral experiences, the research and extension associate will enjoy a network of senior academic and policy colleagues from which they may launch a successful career as a faculty member or policy analyst.

The research associate will be compensated commensurate with recent PhDs in their field of study and will have access to health care benefits.

 

Location of Activities:

The successful candidate will be expected to relocate to Texas and will be provided with offices on the Texas A&M University (TAMU) campus and in the Texas FSRDC in College Station, in close proximity to mentors within the Texas A&M AgriLife Extension Service and FSRDC. TAMU is distinctive as a student-focused, land-grant, research university, that provides an excellent education at a top-ranked institution by combining teaching, research, and Extension in a rich learning environment. TAMU is listed in the National Science Foundation’s top 20 in several areas.

The position will involve travel to the TAMU FSRDC, located on campus in College Station, and to conferences related to the topics addressed by the associate. Travel in and out of state is necessary to fulfill job responsibilities.

This position is supported by the Agricultural and Food Research Initiative Competitive Program of the USDA National Institute of Food and Agriculture (NIFA), Award number 2018-68006-27641.

 

Minimum Requirements:

  • ABD in Agricultural Economics, Economics, or related field, completed by the date of the first day of employment.
  • Demonstrated interest in topics addressed in project description.
  • Strong English written and verbal communications skills.
  • The associate will need to pass a background check and have spent three of the previous five years in the United States, as required to gain access to a Federal Statistical Research Data Center (FSRDC).
  • Working knowledge of Stata, SAS, or related statistical software available in the FSRDC environment.

 

Desired Qualifications:

  • PhD in Agricultural Economics, Economics, or related field, completed by the date of the first day of employment.
  • Academic record of publications related to the issues to be address in project description.
  • Demonstrated skills in quantitative analysis.
  • Demonstrated ability to synthesize academic inputs from a wide array of sources.
  • Understanding of the land grant university system.
  • Experience working in the FSRDC system or with other systems involving large datasets.