Abstract/Summary

Entrepreneurship makes important contributions to both regional and national economies, however, entrepreneurship rates vary significantly across and within regions. We apply the communication accommodation theory lens to examine the role that bilingualism plays in regional entrepreneurship. We use aggregated firm and district level longitudinal data on eight north-eastern districts in the region of South Tyrol (Italy) during 2000-2015 and demonstrate positive direct effect of bilingualism on entrepreneurship activity and non-linear effect on business dynamics. Results can be generalizable to other European regions.