<abstract xmlns="http://www.w3.org/1999/xhtml">
<sec><h3>Subject and purpose of work</h3>
<p>The study was conducted in the municipalities of the Kraków Metropolitan Area. It aims to identify models for supporting local entrepreneurship and assess their effectiveness. The effectiveness of the models was evaluated by measuring the diversity and changes in the number of enterprises in the area. We also presented entrepreneurs’ opinions on their satisfaction with specific policies.</p>
</sec>
<sec><h3>Materials and methods: </h3>
<p>Secondary ( literature and statistical data) and primary data sources were used in the paper. The primary source was a survey among entrepreneurs. The survey research to assess the performance of entrepreneurship policy involved 21 municipalities. We apply a mixed-method approach here (comparative indicator analysis, cluster analysis and Kruskal-Wallis tests).</p>
</sec>
<sec><h3>Results: </h3>
<p>The research demonstrated that the policy involving entrepreneurship support through tax instruments (reduced local tax rates) does not contribute significantly to providing entrepreneurship-fostering conditions. The study revealed that the level of entrepreneurship may be affected more by the expenditure policy, such as the municipality’s efforts to establish special economic zones, organise training, establish business information points, etc.</p>
</sec>
<sec><h3>Conclusions: </h3>
<p>Local governments (LG) that are attractive to investors (such as easily available infrastructure and proximity to markets) should adopt high property-tax rates. The tax is undervalued in peri-urban municipalities (compared to property value) and does not burden the business. Second, LG should focus on hard projects. They should intensify spatial planning and land management to ensure space for business to grow. It will entail conflicts and balancing the needs of diverse social groups, but it must be done to stimulate local socioeconomic development.</p>
</sec>
</abstract>

Subject and purpose of work
The study was conducted in the municipalities of the Kraków Metropolitan Area. It aims to identify models for supporting local entrepreneurship and assess their effectiveness. The effectiveness of the models was evaluated by measuring the diversity and changes in the number of enterprises in the area. We also presented entrepreneurs’ opinions on their satisfaction with specific policies.

Materials and methods: 
Secondary ( literature and statistical data) and primary data sources were used in the paper. The primary source was a survey among entrepreneurs. The survey research to assess the performance of entrepreneurship policy involved 21 municipalities. We apply a mixed-method approach here (comparative indicator analysis, cluster analysis and Kruskal-Wallis tests).

Results: 
The research demonstrated that the policy involving entrepreneurship support through tax instruments (reduced local tax rates) does not contribute significantly to providing entrepreneurship-fostering conditions. The study revealed that the level of entrepreneurship may be affected more by the expenditure policy, such as the municipality’s efforts to establish special economic zones, organise training, establish business information points, etc.

Conclusions: 
Local governments (LG) that are attractive to investors (such as easily available infrastructure and proximity to markets) should adopt high property-tax rates. The tax is undervalued in peri-urban municipalities (compared to property value) and does not burden the business. Second, LG should focus on hard projects. They should intensify spatial planning and land management to ensure space for business to grow. It will entail conflicts and balancing the needs of diverse social groups, but it must be done to stimulate local socioeconomic development.

The Role of the Local Government in Fostering Entrepreneurship – Evidence from Municipalities in the Kraków Metropolitan Area

Faculty of Agriculture and Economics, University of Agriculture in Krakow

Institute of Economics and Finance, Warsaw University of Life Science

Economic and Regional Studies / Studia Ekonomiczne i Regionalne

This work is licensed under the Creative Commons Attribution 4.0 International License.

Subject and purpose of work
The study was conducted in the municipalities of the Kraków Metropolitan Area. It aims to identify models for supporting local...

The Role of the Local Government in Fostering Entrepreneurship – Evidence from Municipalities in the Kraków Metropolitan Area

Published Online: Apr 02, 2024

Page range: 21 - 57

Received: Dec 01, 2023

Accepted: Mar 01, 2024

DOI: https://doi.org/10.2478/ers-2024-0002

Keywords
entrepreneurship, local government, tax policy, survey

© 2024 Wojciech Sroka et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

The Role of the Local Government in Fostering Entrepreneurship – Evidence from Municipalities in the Kraków Metropolitan Area

Published Online: Apr 02, 2024

Page range: 21 - 57

Received: Dec 01, 2023

Accepted: Mar 01, 2024

DOI: https://doi.org/10.2478/ers-2024-0002

Keywordsentrepreneurship, local government, tax policy, survey

© 2024 Wojciech Sroka et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Keywords
entrepreneurship, local government, tax policy, survey