Management Decision

Purpose – The aim of this paper is to compare the particular characteristics of industrial SMEs in low- and high-income regions from the perspective of their “entrepreneurial quality”.

Design/methodology/approach – Based on three groups of factors, (personal characteristics of entrepreneurs, entrepreneurial orientation and productive dependence of firms), which define entrepreneurial quality (EQ), the empirical analysis is focused on testing whether industrial SMEs in three Spanish regions with low per capita income present different EQs to those of industrial SMEs in three other Spanish regions with high per capita income. Data was obtained from a survey addressed to the person in the role of entrepreneur in each of these firms. Since the dependent variable is dichotomous, the logistic regression model is applied in this study.

Findings – Results show there is a relationship between the regional levels of development and the entrepreneurial quality of the industrial SMEs. In low-income regions, the level of EQ is lower due to several factors. Firstly, these entrepreneurs have lower educational background, a lack of previous experience, and are more often led by pushing motivations; secondly, these industrial SMEs have lower entrepreneurial orientation when measured through innovation and proactiveness; finally, relations between firms are characterized by a higher productive dependence.

Originality/value – This study offers a significant contribution by specifying the concept of EQ and its relationship with the degree of economic development. Likewise, a policy implication derived from the results is the need to improve the human capital of entrepreneurs in low-income regions.