Can policy makers count with positive impact of entrepreneurship on economic development of the Czech regions?

Abstract

Purpose The purpose of the present study is to empirically investigate the impact of the newly established entrepreneurial activity on economic development of the Czech NUTS 3 regions during the period of years 2003-2015. Design/methodology/approach An econometric approach was used to validate the stated hypotheses assuming a positive relationship between the new entrepreneurial activity and regional economic growth and a negative relationship between the new entrepreneurial activity and unemployment rate. For the methods, regression models with fixed effects were estimated on the panel that included 13 Czech regions, covering the period of years 2003-2015. The new entrepreneurial activity was classified into two forms – rate of newly established self-employed set-ups per capita and rate of newly established business companies and partnership set-ups per capita. Findings Different impacts of newly established business companies and the self-employed were found on real gross domestic product (GDP) per capita. Only the higher rates of newly established business companies and partnership were associated with higher levels of GDP per capita in the Czech regions, and no impact was found for the rate of new self-employed set-ups. Nevertheless, both forms of newly established entrepreneurial activity were associated with lower unemployment rates in the Czech regions; however, the impact of newly established business companies was significantly higher. The obtained results have several policy implications, which are discussed in the present paper. Practical implications Support of entrepreneurship in the Czech regions may improve the situation on the local labour markets and may deliver new job opportunities through the newly established enterprises. The Czech entrepreneurship policies focused on the growth of GDP and economic boom should be oriented more on the support of high-growth enterprises (unicorns). Originality/value The empirical analysis was conducted on the basis of the research gap in the studies related to the impact of the newly established entrepreneurial activity on the economic development of the Czech regions. Obtained results have several policy implications, which are discussed in the present paper.

The Influence of Entrepreneurship and Social Networks on Economic Growth—From a Sustainable Innovation Perspective

“…After including government intervention, government agency quality, and educational factors, the effect of social networks on regional economic growth is correspondingly enhanced. The increase indicates that for the current overall economic development in China, the entrepreneurial economy represented by the entrepreneurship and the interpersonal networks represented by social networks, can have a continuous positive effect on economic activities in the macro level [5,8], which is consistent with some current studies [11,25]. However, in-depth analysis found that entrepreneurship and social networks have corresponding U-shaped non-linear effects on regional economic growth.…”

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Does Thinking Style Make a Difference in Environmental Perception and Orientation? Evidence from Entrepreneurs in Post-Sanction Iran

“…As with most studies in the context of Iran, we unable to compare the selected entrepreneurs from each region with the total number of entrepreneurs in that region. In contrast to similar studies in developed countries [96][97][98][99], this type of statistical information is not available in developing countries.…”

Economic performance of the NUTS III Regions in the Czech Republic in the context of entrepreneurship subsidies from the EU Structural Funds

“…The short-run positive relationship between subsidies from EU Structural Funds and regional economic growth report is reported by, for instance, Eggert et al (2007). One of the possible explanations for the positive impact, besides the entrepreneurial activity (Dvouletý, 2017b;2017c;Dvouletý andLukeš, 2016 or Dvouletý andMareš, 2016), is also the multiplier effect that the implemented projects can bring.…”

“…Also, Audretsch (2001) considers these enterprises to be at the forefront of the innovation process with an obvious competitive advantage. The most frequently mentioned of the problem of SMEs and new start-ups is the lack of initial financial capital, needed for expansion and growth of their businesses (e. g. Dvouletý, 2017a). …”