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The dynamics of entrepreneurial agglomeration formation: Social selection and simulation
Yong Tang1, Sohail Ahmad Javeed1
1Management School, Hunan City University, Yiyang, China.
Plos One
|September 28, 2023
Summary
Entrepreneurial agglomeration emerges due to sequential career choices influenced by existing entrepreneurship. Key factors include risk compensation, initial population, role models, and early ratios, highlighting entrepreneurship's historical path dependency.
Area of Science:
- Economics
- Sociology
- Complexity Science
Background:
- Regions with similar economic conditions exhibit varying levels of entrepreneurial agglomeration.
- Understanding the dynamics of entrepreneurial agglomeration formation is crucial for regional development.
Purpose of the Study:
- To model and analyze the formation process of entrepreneurial agglomeration.
- To identify key determinants influencing the emergence of entrepreneurial clusters.
Main Methods:
- Agent-based modeling using NetLogo.
- Mathematical analysis of sequential decision-making processes.
- Numerical simulations to observe emergent patterns.
Main Results:
- A nonlinear Polya process with self-reinforcing and path-dependent characteristics emerges under social selection.
- Sequential career choices of entrants lead to the agglomeration of entrepreneurship.
- Key determinants identified: agent's risk compensation, initial population, early role models, and initial entrepreneurial ratio.
Conclusions:
- Entrepreneurship exhibits "memory," meaning historical development influences future outcomes.
- Entrepreneurial agglomeration is a path-dependent phenomenon shaped by early choices and social dynamics.
- Interventions should focus on early-stage determinants and enhancing individual risk-taking abilities to foster agglomeration.
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