In Working Paper 32604, researchers explore the impact of Starbucks cafés on entrepreneurship in U.S. neighborhoods. They found that the introduction of Starbucks in areas with no prior coffee shops led to a 5.0% to 11.8% increase in startups over 7 years. Interestingly, the study showed that partnerships with Starbucks, such as those with Magic Johnson in underprivileged neighborhoods, had even larger effects. The size and popularity of Starbucks locations also played a role in the growth of entrepreneurship. This research highlights the importance of “third places” like cafés in fostering network ties and supporting local entrepreneurs.
https://www.nber.org/papers/w32604