Brewing Entrepreneurship: Coffee and Startups

Abstract

We examined the impact of coffee shops on entrepreneurship. Matching Google Reviews for coffee shops posted from 2016 to 2018 with nearby establishments in the state of Maryland, we found that one mile closer to the nearest three coffee shops, an establishment is 10.1 percent more likely to be a startup than an incumbent company. Coffee shops with a higher proportion of reviews related to social interaction, and those with better space quality and locational accessibility are more likely to be surrounded by startups. We identified specific features of urban third places that planners can cultivate to encourage or attract entrepreneurship.

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