Abstract
This paper presents the results of a survey carried out in 2017. The research was focused on the behaviour of Polish local and regional formal institutions (L.G.U.s) in support of the development of local and regional entrepreneurship. The main aim was to determine which institutions are crucial for the support of the development of entrepreneurship, but, more importantly, to find why some L.G.U.s obeyed the rules of the entrepreneurship game even if the state monitoring and enforcement mechanisms were lacking. Statistical tools of correlation analysis and factor analysis were used in the research. The factor analysis added empirical evidence on the discussion on how L.G.U.s may affect development of entrepreneurship. Based on the statistically processed data obtained from research, the authors came to the conclusion that geographic location, political power, level of unemployment, size of the territory or level of debt had no impact on the behaviour of L.G.U.s in their support of the development of entrepreneurship. What mattered for the support of entrepreneurship by L.G.U.s was the model of management, type of L.G.U., and the number of enterprises within the territory governed by L.G.U.s. Moreover, only provinces fully succeeded in supporting the development of entrepreneurship, while rural municipalities failed.
Highlights
Entrepreneurship plays a significant role in the process of the socio-economic development of economies (Williams, Vorley, & Williams, 2017), especially in countries at the intermediate stage of development that want to narrow the distance that separates them from world leaders
Entrepreneurship is generally acknowledged to be a key force of economic growth, and that is why formal institutions undertake action to support the development of entrepreneurship in order to stimulate growth
L.G.U.s which are closest to the entrepreneur should know best which actions/instruments will be most efficient in stimulating entrepreneurship in their environment (Wołowiec & Skica, 2013)
Summary
Entrepreneurship plays a significant role in the process of the socio-economic development of economies (Williams, Vorley, & Williams, 2017), especially in countries at the intermediate stage of development (such as Central and East European countries, hereinafter C.E.E.C.s) that want to narrow the distance that separates them from world leaders. Entrepreneurship has been a key force of economic growth at national level (Acs, Desai, & Hessels, 2008; Audretsch & Thurik, 2001; Baumol, 1990) and at the regional level (Huggins & Thompson, 2016). Entrepreneurship may be productive, unproductive and destructive (Baumol, 1990; Sautet, 2013), mostly because of market failures
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