Exploring the nexus between public sector entrepreneurial orientation and local entrepreneurship: A Polish local government example

This research examines the impact of Entrepreneurial Orientation (EO) within Polish local governments (LGs) on local entrepreneurship, focusing on the dimensions of innovativeness, risk-taking, and proactiveness. Data for this study were collected through a survey administered to Polish municipalities, supplemented with secondary data from the Local Data Bank. Initially, the Confirmation Factor Analysis (CFA) was conducted to validate the constructs of EO, ensuring robust measurement of these latent variables. Subsequently, Structural Equation Modeling (SEM) was used to explore the effects of these validated EO dimensions on local entrepreneurship activeness. Findings reveal that innovativeness and risk-taking are strongly associated with increases in new business registrations and community entrepreneurial engagement. The research findings underscore the significance of innovativeness as a primary factor influencing local entrepreneurship, while also suggesting that risk-taking and proactiveness, despite their smaller direct effects, can play a crucial role through their indirect effects. Therefore, a holistic approach to supporting entrepreneurship, encompassing all three dimensions of entrepreneurial orientation, is essential for the sustainable development of local communities. The study contributes to the literature on public sector entrepreneurship by demonstrating the practical implications of EO in enhancing local entrepreneurship offering valuable insights for policy-making.