Entrepreneurship, Economic Growth and Economic Development in American Counties

America is a nation where a strong entrepreneurial culture establishes favorable conditions for subsequent entrepreneurship activity. I develop and test a model that comprises the determinants and consequences of new venture creation in American counties. The empirical results using a sample of 2,300 counties support direct and mediation effects between determinants of new venture creation and economic development and growth. This study contributes to knowledge by empirically testing an existing framework of entrepreneurship as well as assessing how new venture creation improves the economic development and growth in American counties. Particularly, the study finds environmental determinants to foster new venture creation and confirms the contention that new venture creation contributes to improve the economic conditions of a region. Recommendations for future theoretical and empirical research as well as practical implications for entrepreneurs and policymakers are also discussed.