What Should Determine Where Start-Ups Choose to Locate? The Five Cs of Place Surplus

53 Pages Posted: 26 Mar 2014 Last revised: 27 Mar 2014

See all articles by Sami Mahroum

Sami Mahroum

INSEAD Abu Dhabi Campus

Elizabeth Scott

INSEAD Abu Dhabi Campus

Date Written: March 24, 2014

Abstract

This paper examines the factors that underlie location decisions made by entrepreneurs that have established successful hi-tech endeavours in non-traditional places. The paper considers the cases of Skype in Estonia and SoundCloud in Berlin. Lessons are drawn from the cases and a theoretical framework proposed entitled “the Five Cs framework” in reference to the elements of Cost, Calibre, Convenience, Creativity, and Community that are used to capture the utility of a location. A new rationale is offered to explain what entrepreneurs who succeed consider and are influenced by when choosing a location for their ventures.

Keywords: Entrepreneurship, Silicon Valley, Start-ups, Location, Estonia, Berlin

Suggested Citation

Mahroum, Sami and Scott, Elizabeth, What Should Determine Where Start-Ups Choose to Locate? The Five Cs of Place Surplus (March 24, 2014). INSEAD Working Paper No. 2014/25/INSEAD Innovation Policy Initiative. Available at SSRN: https://ssrn.com/abstract=2413873 or http://dx.doi.org/10.2139/ssrn.2413873

Sami Mahroum (Contact Author)

INSEAD Abu Dhabi Campus ( email )

P.O. Box 48049
Abu Dhabi
United Arab Emirates

Elizabeth Scott

INSEAD Abu Dhabi Campus ( email )

P.O. Box 48049
Abu Dhabi
United Arab Emirates

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