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We use unconventional, web-based user data to assess regional entrepreneurial activity and regional variations in characteristics and culture that drive differences in business formation. Using geographically granular, user-online activity to estimate a region’s proclivity for entrepreneurship, we assess the statistical relationship between business formation, operationalized as establishment births, and a region’s general interest in “third places” – informal gathering and mixing locations – and websites related to arts, music and design – “arts spaces.” We operationalize interest in, or intention to patronize, third places and arts spaces by individuals within a geographical unit of analysis (U.S. counties) who access website information and resources related to those third places. Controlling for regional interest in entrepreneurship related web resources, we find that interest in third places and art spaces is strongly associated with regional variation in business formation. This work corroborates research showing that regions with a high concentration of interest (and participation) in third places and art spaces may attract the attention of would be entrepreneurs as desirable places to live, work and explore business opportunities, and help identify and address a critical missing ingredient in regions that have lower rates of start-ups and business growth.

Third Places and Art Spaces: Using Web Activity to Differentiate Cultural Dimensions of Entrepreneurship Across U.S. Regions