Entrepreneurship and Regional Development: A Theoretical Framework

Abstract

A theoretical framework is developed for examining entrepreneurship at the regional (provincial) level. It is argued that conditions and systems at the national and state levels provide the foundation for regional entrepreneurship. Differences in entrepreneurship among regions can be explained by differences in regional resources which include enterprising individuals who live or move to the regions. Regional resource can be group into natural resources, infrastructure and other location advantages; demographics and markets in the region; financial resources; and the structure of the region's industry. Other resources are human capital and the socio-cultural context. Regions can be placed on a continuum of munificence-depletion in relation to their resources. It is argued that regions at both ends ofthe continuum would be unattractive to entrepreneurship.