The impact of institutional factors on entrepreneurial activity: a comparative analysis between peripheral and central regions

Abstract The promotion of entrepreneurial activity is a crucial driver for the economic and social development of regions, especially in peripheral ones where business creation can mitigate structural disadvantages. Drawing on institutional theory and the entrepreneurial ecosystem perspective, this study analyses how formal and informal institutional factors condition entrepreneurship in peripheral versus central Spanish regions. Using data from 1,007 experts in the 2019 GEM National Expert Survey, a Welch’s t-test was applied to compare both contexts. Further regression analyses conducted separately for each region type reveal distinct institutional patterns: peripheral regions show strong dependence on government programmes as the primary driver, while central regions demonstrate a more balanced influence across multiple factors including corporate finance and cultural norms. The results reveal significant differences: peripheral regions show lower values in key formal factors such as government programmes, physical infrastructure, corporate finance, and R&D transfer, while no significant differences were found in informal factors (education and social norms). These findings confirm that the particularities of peripheral regions, geographic remoteness, higher costs of access to resources, and weaker institutional support, act as barriers that condition entrepreneurial activity. The differentiated regression results validate the need for territorially-specific policy approaches, with peripheral regions requiring enhanced direct government intervention while central regions benefit from a more diversified institutional support framework. The study provides theoretical insights into the role of institutional environments in entrepreneurship and practical guidance for policymakers to strengthen support mechanisms in peripheral regions.