The Determinants of Entrepreneurship Development in Spatial Systems

Abstract

The processes of technological progress create new opportunities for economic, social and cultural growth, shape new relations between economic entities and their environment, and influence changes in the determinants of entrepreneurship development. These processes vary significantly in certain geographic locations, characterised by an enormous diversity of natural, social, economic and cultural structures. As a consequence, this creates different opportunities and different conditions for the development of entrepreneurship in certain spatial scales, from the continental scale, through national and regional to local scales. The article presents complex conditions for the development of entrepreneurship, highlights its limitations resulting from institutional barriers, and the importance of knowing the mechanisms of mutual relations between spatial systems and the influence of control instruments. The quality of central and local government authorities is of particular significance here, which do not always properly use the mechanisms of rational business support. A serious barrier to the development of entrepreneurship is the low quality of social capital, manifested in a lack of trust in institutional authorities and reluctance to engage in entrepreneurship and business development. The conclusions point out that further research should be developed that will take into account changing business conditions, with a defined strategic goal of raising the quality and standard of living, international competitiveness of the country and products in different market categories.