Abstract
This study applies a spatial regression model to panel data to investigate the impact
of spatial proximity between Italian high-growth startups, termed Gazelles, on their
Return on Assets (ROA). The model incorporates a spatially lagged dependent variable
to capture the influence of neighboring firms’ performance. Furthermore, we
examine the association between perceived crime levels in the provinces where these
startups operate and their profitability. Our results show that operating profitability
is positively associated with mutual geographic proximity among Gazelles, whereas
it is negatively affected by elevated perceptions of local crime. These findings are
relevant for entrepreneurs, incubators, and accelerators seeking to identify contextual
factors that may enhance or impede firm performance. They also have significant
implications for policymakers aiming to design strategies that foster positive
externalities and mitigate detrimental externalities in entrepreneurial ecosystems.
Keywords: Organized crime, Spatial proximity of enterprises, Performance of highgrowth
startups, Gazelle enterprises. Startups.
