When confronted with rising concerns about economic growth, unemployment and job creation, the response at national level is often to promote the creation of new businesses and strengthen the operating conditions of its entrepreneurial fabric, so as to maintain competitiveness in global markets.
No doubt, improving the economic basis of any region requires a business environment where firms can prosper.
To strengthen and diversify the economy, policy makers and local leaders need to be aware of the characteristics and of the determinants of firm performance and growth, affecting in particular small and medium firms. Understanding the determinants of firm performance and growth and it contribution to overall economic growth is crucial in designing specific and appropriate stimulus policies.
A set of regional and institutional characteristics concerning the socioeconomic structure and policy actions of a region can contribute to explaining the variations not only in business formation, but also in firm performance and growth. These include demand-side, supply-side and policy variables, which range from regional, institutional and policy aspects to the quality of the local labor market, business climate, firm internationalization and innovation capacity.
As such, in the present context of economic slowdown, the relevancy of approaching these topics becomes more pertinent than ever.