Monday, March 24, 2014

What Should Determine Where Start-Ups Choose to Locate? The Five Cs of Place Surplus

MAHROUM Sami, SCOTT Elizabeth
Read the working paper
INSEAD Working Paper 2014/25/IIPI

This paper examines the factors that underlie location decisions made by entrepreneurs that have established successful hi-tech endeavours in non-traditional places. The paper considers the cases of Skype in Estonia and SoundCloud in Berlin. Lessons are drawn from the cases and a theoretical framework proposed entitled “the Five Cs framework” in reference to the elements of Cost, Calibre, Convenience, Creativity, and Community that are used to capture the utility of a location. A new rationale is offered to explain what entrepreneurs who succeed consider and are influenced by when choosing a location for their ventures.