Localization potential of the Czech regions

Abstract

The article examines the entrepreneurial potential of the administrative districts of the Czech Republic. This potential is measured by theoretically adjusted localization factors of entrepreneurship, which are related to labour force characteristics, location´s characteristics and entrepreneurial climate characteristics. Cluster analysis is employed to indicate groups of districts with similar entrepreneurial potential. Although the issue of entrepreneurial activity seems to be crucial for regional development and growth, the relevant research on entrepreneurial potential of regions is rather scarce in the post-communist countries. Findings of the article provide several important conclusions for decision-making of firms, public authorities, but also for further research.