ECONOMIC AND SOCIAL DETERMINANTS OF REGIONAL ENTREPRENEURSHIP: EVIDENCE FROM TURKIYE

This study examines the long-term effects of economic and social factors affecting entrepreneurial activities across Türkiye’s NUTS1 regions between 2009 and 2022. Using the Fully Modified Ordinary Least Squares (FMOLS) methodology, the relationships among regional GDP growth, income inequality, unemployment rates, public education expenditures and early school leaving rates are analyzed. The results show that GDP growth and income inequality have a positive impact on entrepreneurial activities, whereas unemployment rate and public education expenditures have negative effects. Early school leaving rate is found to have a limited but positive effect on entrepreneurship. It explicitly links entrepreneurship to broader socio-economic dimensions, highlighting how factors such as income inequality, education, and unemployment shape entrepreneurial dynamics across regions. The findings reveal that economic and social factors play a multidimensional role in shaping entrepreneurship dynamics. By incorporating regional disparities and linking entrepreneurship with broader socio-economic dimensions, the study aligns with international literature on entrepreneurship and economic development. It also provides practical recommendations for policymakers, such as developing strategies to promote income equality, strengthening regional financial support mechanisms, and integrating entrepreneurship education into the national curriculum to foster sustainable development. This comprehensive analysis offers both insight into Turkey’s regional entrepreneurship landscape and a framework for policymakers aiming to balance economic growth with social equity.