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

Abstract

AbstractThis study investigates the intricate relationship between natural disasters and regional entrepreneurship in Türkiye, a developing nation highly vulnerable to earthquakes, floods, and other hazards. The study extends Hierarchical Multiple Regression (HMR) analysis (1990–2020, 81 NUTS-III regions), beyond existing literature focused on physical damage. Our findings reveal a counterintuitive effect: while the number of disasters and total property damage correlate positively with regional entrepreneurship, human life loss has a negative impact. This suggests a complex interplay between destruction and entrepreneurial spirit. Further analyses using Discriminant Function Analysis (DFA) and MANOVA-ANOVA for robustness check explores regional characteristics that contribute to entrepreneurial resilience against natural disasters. By comparing regions categorized by entrepreneurial performance and disaster exposure, the study identifies key differentiators. Regions with supportive business environments demonstrate greater resilience, highlighting the crucial role of fostering a strong entrepreneurial ecosystem in mitigating disaster effects. This research fills a critical gap by examining the understudied relationship between natural disasters and regional entrepreneurship, going beyond individual firm-level studies. By analysing interregional disparities and resilience factors, this paper provides valuable insights for both regional development and entrepreneurship & resilience literature. It emphasizes the importance of human capital alongside disaster preparedness and institutional quality in building regional resilience.