The Relevance of Quantity and Quality Entrepreneurship for Regional Performance: The Moderating Role of the Entrepreneurial Ecosystem

32 Pages Posted: 15 Sep 2017

See all articles by László Szerb

László Szerb

University of Pécs

Esteban Lafuente

Universitat Politecnica de Catalunya (UPC Barcelona Tech)

Krisztina Horváth

University of Pécs - Faculty of Business and Economics

Balázs Páger

Hungarian Academy of Sciences (HAS) - Research Centre for Economic and Regional Studies (HAS)

Date Written: September 13, 2017

Abstract

This study analyses how the entrepreneurial ecosystem and different types of entrepreneurship — i.e., quantity (Kirznerian) and quality (Schumpeterian) entrepreneurship — impact regional performance, in terms of gross value added per worker and employment growth. By analysing 121 European Union regions between 2012 and 2014, we find that an enhanced entrepreneurial ecosystem yields to superior regional performance. The results reveal a heterogeneous effect of quantity- and quality-based entrepreneurship on regional performance: quantity (Kirznerian) entrepreneurship negatively impacts regional performance, while this effect turns positive in case of quality (Schumpeterian) entrepreneurship. The findings also suggest that regions with a healthy entrepreneurial ecosystem have a greater capacity to materialize the effects of high regional business formation rates, regardless of their quality level (Kirznerian entrepreneurship), while regions with weak entrepreneurial ecosystem may rely on Schumpeterian entrepreneurs — who channel new and more innovative resources to the economy — to compensate the absence of entrepreneurship policy-support instruments and increase their economic outcomes.

Keywords: regional entrepreneurship, entrepreneurship ecosystem, REDI, Kirznerian entrepreneurship, Schumpeterian entrepreneurship

JEL Classification: M13

Suggested Citation

Szerb, Laszlo and Lafuente, Esteban and Horváth, Krisztina and Páger, Balázs, The Relevance of Quantity and Quality Entrepreneurship for Regional Performance: The Moderating Role of the Entrepreneurial Ecosystem (September 13, 2017). Available at SSRN: https://ssrn.com/abstract=3036312 or http://dx.doi.org/10.2139/ssrn.3036312

Laszlo Szerb (Contact Author)

University of Pécs ( email )

Rákóczi st. 80
Pécs, 7622
Hungary

HOME PAGE: http://ktk.pte.hu/en/department-quantitative-management/laszlo-szerb

Esteban Lafuente

Universitat Politecnica de Catalunya (UPC Barcelona Tech) ( email )

Barcelona, Barcelona
Spain

Krisztina Horváth

University of Pécs - Faculty of Business and Economics ( email )

Rákóczi út 80
Pécs, 7622
Hungary

Balázs Páger

Hungarian Academy of Sciences (HAS) - Research Centre for Economic and Regional Studies (HAS) ( email )

7621 Pécs, Papnovelde u. 22
Budapest, H-1112
Hungary

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