What works and what does not work in local entrepreneurship support policy?

Abstract

Objective: The article aims to determine the influence of specific entrepreneurship support instruments in each type of municipality on the increase entrepreneurship level as measured by the number of newly established companies in the area.

Research Design & Methods: A survey was conducted among 896 Polish municipalities, asking about four areas of entrepreneurship support: cooperation of the commune with entrepreneurs; finance, tax, and administration support; attracting investors, granting external funds by the commune; and supporting non-governmental organizations. To determine the relationship between the type of commune, the instrument used, and the effectiveness of the tool used, we used a generalized reduced gradient non-linear algorithm.

Findings: The study results proved that there is no one universal area or instrument that would guarantee with high probability success in the form of an increase in the level of entrepreneurship in a municipality, regardless of its type. It was shown that in specific types of municipalities, it is possible to identify tools that are more effective than others.

Implications & Recommendations: This knowledge can and should provide important guidance to decision-makers at the local level, showing tools that may work better in their type of municipality.

Contribution & Value Added: The identification of specific tools that work for a particular type of municipality is an important stimulus in the discussion on strengthening the effectiveness of Polish municipalities’ policies.

Keywords

entrepreneurship, support instruments, municipal entrepreneurship, local development, local government support

Author Biography

Jacek Rodzinka

PhD in economics (John Paul II Catholic University of Lublin, 2005), Master of Economics (Maria Curie-Skłodowska University in Lublin, 1999). His research interests include: entrepreneurship, local and regional development, clusters, social security.

Correspondence to: PhD Jacek Rodzinka, University of Information Technology and Management in Rzeszow, Faculty of Management, Institute for Financial Research and Analyses, ul. Sucharskiego 2, 35-225 Rzeszow, Poland, e-mail: jrodzinka@wsiz.edu.pl

ORCID  https://orcid.org/0000-0002-4003-0891

Tomasz Skica

Prof.

Department of Entrepreneurship, University of IT and Management in Rzeszow

Head of the Department of Entrepreneurship. Habilitated doctor of social sciences in the discipline of economics and finance. Since 2002, he has been professionally associated with the University of Information Technology and Management in Rzeszów. Editor-in-chief of the Financial Internet Quarterly. Lecturer at UITM postgraduate studies. Cisco Entrepreneur Institute (CEI) trainer. An expert in the field of public finances (in particular the finances of local government units).

Elżbieta Ociepa-Kicińska

Ph.D.

Institute of Spatial Management and Socio-Economic Geography, University of Szczecin

 Assistant Professor at the Institute of Spatial Management and Socio-Economic Geography, Faculty of Economics, Finance and Management, University of Szczecin Poland. His scientific research focuses on data analysis and his core areas of interest are multivariate statistical methods and quantitative methods in regional development. He is author of several publications on this subject.

Rafał Czyżycki

Ph.D.

Institute of Spatial Management and Socio-Economic Geography, University of Szczecin

 Assistant Professor at the Institute of Spatial Management and Socio-Economic Geography, Faculty of Economics, Finance and Management, University of Szczecin Poland. His scientific research focuses on data analysis and his core areas of interest are multivariate statistical methods and quantitative methods in regional development. He is author of several publications on this subject.

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