COVID 19 and regional entrepreneurship: which regional features can mitigate the devastating effects of COVID-19?

Abstract

ABSTRACT Given the assumption that entrepreneurship is context-dependent and embedded in spatial features, the severity of the impact of the COVID-19 crisis on entrepreneurship may vary significantly across regions. This study, which is the first in the literature, categorizes 81 NUTS III level regions in Türkiye according to their entrepreneurship levels and examines how and to what extent regional characteristics determine entrepreneurship patterns, using MANOVA-ANOVA and Discriminant Function Analysis (DFA). Inspired by the resilience literature, it tries to reveal which regional attributes are more effective in keeping entrepreneurship resilient against shocks by comparing the pre-crisis (2012) and crisis periods (2020). Revealing critical differences between the pre-crisis and crisis periods, the article shows that population density, positive migration, high education levels, sectoral diversity, government incentives and natural geographical features, such as altitude and precipitation, are vital for regional entrepreneurship to remain resilient against COVID-19. Additionally, high population growth, young population rate, financial capital and income level, developed production, innovation, transportation and communication infrastructure combined with strong international networks and suitable climatic conditions are critical determinants that encourage regional entrepreneurship. On the contrary, specialization in certain sectors appears to be a regional weakness.