Home sweet home : Social capital and location choice

  title={Home sweet home : Social capital and location choice},
  author={Michael S. Dahl},
We argue that social capital places strong constraints on an entrepreneur’s ability to found a firm in a region in which he or she does not have connections. We examine this thesis using comprehensive data on the Danish population and find evidence broadly consistent with this claim. Entrepreneurs tend to open businesses in regions in which they have deep roots (‘home’ regions). We further find that their ventures perform better (survive longer) when they locate in these home regions. The value… CONTINUE READING