The relevance of quantity and quality entrepreneurship for regional performance: the moderating role of the entrepreneurial ecosystem

Abstract

This study analyzes how the entrepreneurial ecosystem and different types of entrepreneurship impact regional performance. By analyzing 121 European Union regions between 2012 and 2014, it is found that quantity (Kirznerian) entrepreneurship negatively impacts regional performance, while this effect turns positive in the case of quality (Schumpeterian) entrepreneurship. Also, regions with a healthy entrepreneurial ecosystem have a greater capacity to materialize the effects of high business-formation rates, regardless of their quality (Kirznerian entrepreneurship), while regions with weak entrepreneurial ecosystem may rely on innovative (Schumpeterian) entrepreneurs to compensate for the absence of entrepreneurship support policies and increase their economic outcomes.