This paper investigates the variation in entrepreneurship across cities of the Commonwealth of Independent States during 1995-2008,
utilising a unique dataset and employing the System Generalised Method of Moments technique. Our findings suggest that banking
reform facilitates entrepreneurship, whereas the size of the state discourages it. Our results confirm a U-shaped relationship
between per-capita income and entrepreneurship. We also find that cities with higher concentration of universities are likely
to have higher entrepreneurial entry. This provides some evidence for the importance of agglomeration economies in terms of
higher concentration of knowledge which may lead to intensified exchange of ideas driving knowledge-based entrepreneurship
in the region.
Keywords:Entrepreneurship, small business, urbanisation, transition, CIS Urban Audit
Forschungsbereich:Regionalökonomie und räumliche Analyse