Starting a business no longer means staying in your hometown

People who start their own businesses are no longer systematically more likely to do so in the region where they were born. This means entrepreneurs are now much more mobile, seeking opportunities wherever they find them, rather than being tied to their local area.

For decades, the assumption was that local talent would stay local, especially for self-employment. This paper shows that economic incentives have shifted: it is harder to get rich staying local, and starting a business requires less upfront cash. This means cities and regions can no longer count on their homegrown entrepreneurs to stay put.