ABSTRACT
This chapter looks at the connection between population change and structure, and rates of new firm formation. It examines data on population density, size, growth and decline, together with firm dynamics for the period 2003—2009. The chapter focuses on the context in which population change takes place. It distinguishes between urban and rural areas. The chapter explains the impact of population change on entrepreneurship and describes the data and methodology used. It analyses the empirical relationship between new firm formation and population change in different regional contexts. The chapter presents descriptive results illustrating the link between population change and the rate of new firm formation in different regional contexts. It shows that multivariate regression models that explain the rate of new firm formation across different intensities of population change and depending on the degree of urbanization. The chapter discusses the estimation results in general before returning to the main variables of interest.
