Beyond disaster: investigating the varied responses of regional entrepreneurship to natural disasters

Abstract

Abstract Natural disasters can cause large-scale damage to various infrastructures, preventing sustainable industrialization, innovation activities, and economic growth and prosperity. This article, which tries to examine to what extent entrepreneurial activities, which are considered the critical source of new businesses, employment, innovations and economic development, are affected by natural disasters and how the level of impact differs by region, offers remarkable results. First, it employs Hierarchical Multiple Regression (HMR) analysis to investigate the impact of natural disasters on regional entrepreneurship, considering various factors including supply side, demand side, political and environmental factors. An important finding of the research is that loss of human life, rather than physical damage, emerges as a critical factor shaping regional entrepreneurship development. Second, the study utilizes Discriminant Function Analysis (DFA) to identify regional determinants that contribute to the resilience of entrepreneurship in the face of natural disasters. The research highlights the significance of regional features, government policies and environmental conditions in shaping regional entrepreneurial resilience. Future research avenues could investigate the regional impact of specific types of disasters, conduct subsector-specific analyses, and investigate the role of institutional quality in mitigating the effects of disasters at the regional level.

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