Territorial Governance and Public Support Mechanisms as Drivers of Regional Entrepreneurial Development: A Theoretical Perspective

Abstract

Territorial governance is rapidly becoming the most important factor concerning regional economic development and the performance of entrepreneurial ecosystems. While the role of entrepreneurship as a driver of innovation and employment and the bringing about of economic diversification is well documented, its development is dependent on the quality of institutional environments and the public support systems that are available. In emerging and peripheral areas, where structural bottlenecks inhibit private sector development, governance systems are critical for establishing the basic frameworks for entrepreneurship. The objective of this article is to design a theoretical model that examines the nexus of territorial governance, public support systems, and entrepreneurial development at the regional level, using the Southern Provinces of Morocco as a case study.

This study takes a conceptual approach and relies on the findings of extensive studies that dealt with the literature of governance, regional development, and entrepreneurship and institutional theory. Using Governance Theory, New Regionalism Theory, and Institutional Theory, the article proposes a model whereby territorial governance mediates the institutional and policy entrepreneurship nexus. The model identifies five critical dimensions of governance: the quality of the public administration, the business environment, the public finance, and the public-private partnership.

The findings suggest that good governance of public administration positively enhances entrepreneurial development through improved coordination and integration of institutional frameworks, and through the improvement of access to resources, increased confidence of investors, and the elimination of administrative barriers. Regional support programs such as the Regional Investment Centers (CRI), the National Initiative for Human Development (INDH), Intelaka, Forsa, and Awrach enhance the development of the entrepreneurial ecosystem by integrating the public finance, the institutional framework, and the enhancement of human capital.

These measures hold particular significance for Morocco's Southern Provinces, where entrepreneurship is increasingly being considered a strategic tool for economic diversification, regional competitiveness, and sustainable development.

The proposed theoretical model illustrates how territorial governance acts as a catalyst to strengthen entrepreneurial ecosystems and induce regional economic transformation. Furthermore, it posits that the quality of governance impacts varying degrees of entrepreneurship development, innovation, economic diversification, resilience of the territory, and sustainable development of the region. By placing governance and entrepreneurship together in a single theoretical framework, the study focuses on aspects of regional development and territorial entrepreneurship that are under-researched.

The article closes with a presentation of the policy implications that stem from the model and addresses the future lines of research related to the empirical verification of the suggested order of causal relationships. The model also provides a solid starting point to address the need for governance models that channel development through entrepreneurship in the neglected peripheral spaces of the world and the new regional economies.

Keywords: Territorial Governance; Entrepreneurial Development; Public Support Mechanisms; Morocco’s Southern Provinces; Regional Competitiveness.

Received Date: April 21, 2026

Accepted Date: May 12, 2026

Published Date: June 01, 2026

Available Online at: https://www.ijsrisjournal.com/index.php/ojsfiles/article/view/711