Temporal context: This concerns the effects of time and history on entrepreneurial behavior and innovation.This dimension highlights the role of geography on entrepreneurial behavior and innovation
The second component of the geographic context is the localization or concentration of favorable regulations, laws and networks that support and encourage entrepreneurship and innovation.Informal rules tend to operate through established social norms and perceptions of legitimacy and social desirability which include the norms and attitudes of a society, influence opportunity recognition of (potential) entrepreneurs as well as opportunity exploitation and access to resources.As an enterprise evolves from start-up, establishment and growth, existing sources of financing may no longer be accessible and the entrepreneur may need a new source of venture financing.The first is the location of an enterprise in communities, neighborhoods, regions (Example; rural vs. urban), nations or global reach.Geography has two components.