Impact assessment of entrepreneurial zones on local economic outcomes

The paper explores the existence of differences in local economic outcomes between local government units with and without entrepreneurial zone in Croatia. The analysis is based on the data related to the business results of entrepreneurs, local government budgets and local development during 2004-2016 period. Bivariate statistic methods have been used to analyse whether the differences in business results of entrepreneurs, fiscal performance and level of development at the local level have been determinate by the existence of entrepreneurial zone in the local government unit. The results of this research reveal that entrepreneurial zones are important for the local economic outcomes. The results of empirical analysis confirm that local self-government units with entrepreneurial zones are more successful than units that do not have an entrepreneurial zone. The differences are particularly pronounced when looking at fiscal performance of local government units and business results of entrepreneurs. Investment in establishment of entrepreneurial infrastructure is also positively correlated with the level of local development and level of unemployment.