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, the presence of dealmakers is a better predictor of the vibrancy of the regional entrepreneurial economy.

Keywords: Regional economic development, Entrepreneurship, Social capital

JEL Classification: O18, M13

working papers series