Entrepreneurial Fintech Clusters

42 Pages Posted: 11 Jan 2019 Last revised: 29 Sep 2019

See all articles by Marco Gazel

Marco Gazel

Neoma Business School

Armin Schwienbacher

SKEMA Business School

Date Written: September 29, 2019

Abstract

We study the formation and dynamics of entrepreneurial clusters in the emerging fintech industry. Using detailed data on the almost 1000 fintech startups in France to date, we find that most fintechs are geographically clustered and that the location of new fintech startups is affected, among other things, by the size of clusters and the presence of incubators. Larger clusters attract more new fintech startups, and incubators are shown to be an effective mechanism to attract new fintech startups. We further examine entrepreneurial exits of fintechs and find that being located in a larger cluster reduces the risk of failure but increases the likelihood of being acquired. Increased competition within a given segment of fintech increases failure rates. Moreover, the risk of failure is significantly lower for fintech startups that have been developed in an incubator.

Keywords: fintech, cluster, entrepreneurship

Suggested Citation

Gazel, Marco and Schwienbacher, Armin, Entrepreneurial Fintech Clusters (September 29, 2019). Available at SSRN: https://ssrn.com/abstract=3309067 or http://dx.doi.org/10.2139/ssrn.3309067

Marco Gazel

Neoma Business School ( email )

1 Rue du Maréchal Juin
Mont Saint Aignan Cedex, 76825
France

Armin Schwienbacher (Contact Author)

SKEMA Business School ( email )

Avenue Willy Brandt
Euralille, 59777
France

HOME PAGE: http://sites.google.com/view/armin-schwienbacher

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