The Effect of State’s Entrepreneurship Incentives and Some Other Variables on New Firm Birth Rate in Turkey

While economic crises in 1970’s and 1980’s had significant effects on big-scale companies which have inelastic production systems, small companies had immediately adapted themselves to these crises thanks to their flexible production capabilities. The opinion that entrepreneurship, which has been growing in importance in recent years, is the basic trigger for economic growth and the creation of added value is widely accepted among all circles. Governments implement various policies to support the entrepreneurship ecosystem. In this study, the effect of entrepreneurship supports of Turkish State and some other variables such as per capita amount of tax burden rate and per capita amount of bank deposit rate on the new firm birth rate, which is a significant indicator of entrepreneurship performance is evaluated using fixed effect model with dummy variables based on Turkey 26 Level-2 Regions. According to the model, while TUBITAK TEYDEB incentives and the increase of per capita amount of bank deposit rate effect the entrepreneurship ecosystem positively, the increase of employment rate has a negative effect on the entrepreneurship performance as decreasing the number of new born companies