Exploring the role of the neighbourhood in firm relocation: differences between stayers and movers

Most firm relocations take place across rather short distances, indicating that firms are in general quite place-attached. Still, at the local level, weaker neighbourhoods are characterised by relatively high firm out-migration figures, which may be the result of unfavourable local business conditio...

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Veröffentlicht in:Journal of housing and the built environment 2013-09, Vol.28 (3), p.417-433
Hauptverfasser: Sleutjes, Bart, Beckers, Pascal
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Beckers, Pascal
description Most firm relocations take place across rather short distances, indicating that firms are in general quite place-attached. Still, at the local level, weaker neighbourhoods are characterised by relatively high firm out-migration figures, which may be the result of unfavourable local business conditions. Through a qualitative study of 40 entrepreneurs from weaker neighbourhoods, equally divided between firms that relocated (movers) and firms that did not (stayers), this paper studies to what extent characteristics of the neighbourhood itself influence either past firm relocation decisions or future firm relocation propensity. The results show that the neighbourhood plays only a modest role in firm relocation decisions and propensity, and when neighbourhood characteristics are mentioned as push factors, they are in general outweighed by investments or relocation costs in the decision-making process. Because most firm relocation decisions, both in the past and in the future, are related to aspects of the business property, rather than consequences of other neighbourhood characteristics, maintaining or creating a diverse supply of business properties within a neighbourhood may prevent most potential movers from leaving the neighbourhood much more than neighbourhood liveability improvement measures.
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subjects Business
Business service industries
Business structures
Catering
Costs
Customers
Decision
Decision making
Decisions
Economic conditions
Enterprises
Entrepreneurs
Geography
Green businesses
Home based businesses
Housing
Human Geography
Investments
Landscape/Regional and Urban Planning
Location of industry
Neighborhood characteristics
Neighborhoods
Neighbourhoods
Observational studies
Property
Qualitative research
Relocation
Relocation of industry
Site selection
Social Sciences
Sunk costs
title Exploring the role of the neighbourhood in firm relocation: differences between stayers and movers
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