New Firms Formation in Medical, Creative and Agri-Food Sectors as a Function of Local Conditions and Budget Policy of Polish Communes

Abstract

Theoretical background: The article will help to answer the question what factors contribute to the emergence of new companies in medical, agri-food and creative sectors. Moreover, the aim of the article is to examine to what extent the budget policy of communes determines the creation of new enterprises in each of the analysed sectors separately. Purpose of the article: The aim of the article is to examine the factors affecting new firms formation in medical, agri-food and creative sectors in Poland, as well as the impact of budget policy of local government units at commune level on entrepreneurship in chosen sectors. Research methods: The study was conducted by means of a panel econometric model. In particular, the study was based on FEM estimation modelling based on 2,477 communes in the years 2010–2021. Main findings: The conducted research confirmed that different factors affect new firms formation in studied sectors. The research proved that budget policy of communes influences new firms formation. Moreover, the study confirmed that individual elements of the local budget policy have a different impact on each economic activity. Thus, local budget policy should be profiled in terms of type of activity supported.

Keywords

• budget policy
• communes
• new firms formation, entrepreneurship determinants