The Size of Local Government Administration at a Municipal Level as a Determinant of Entrepreneurship
The Size of Local Government Administration at a Municipal Level as a Determinant of Entrepreneurship

Summary/Abstract: This article’s aim is to examine a dependency between local government administration at a municipal level and the level of local entrepreneurship. This paper attempts to answer the question of whether the size of the local government administration has features of stimulant or de-stimulant in the process of setting up a business. In other words, does the size of public administration at a local level (municipal level) have a positive or negative impact on creating new business entities? This is important due to at least a couple of reasons. First of all, the current research achievements are not extensive, when it comes to the publications that link entrepreneurship and the size of local government administration. Secondly, the problem of entrepreneurship determinants constitutes still topical and not fully investigated (or explained) aspects of local economy development. Thirdly and finally, the authors of this article have proposed and copyrighted an approach to the quantification of the size of local government administration, modifying commonly used measures of local public administration. Thus, this article fits not only into the explanation of the entrepreneurship phenomenon and its determinants, but also contributes to the development of knowledge about dependencies between the size of local self-government and the entrepreneurship level. Due to this fact, the article fills the gap in the current approach to research on the relation along the lines of: entrepreneurship - size of local government administration. It expands the knowledge resource on analyzed dependencies and re-orients current approaches to similar research. The new direction of these approaches comes from the effects of public authorities’ actions that were taken in order to support economic initiatives and relates to the size of self-government administration as a factor that has an impact on entrepreneurship.

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