This study constructs a new spatial economics model of "two-region, two-sector, and two-factor" to elucidate the theoretical mechanism through which spatial quality promotes urban entrepreneurial activity. Using panel data from 283 Chinese cities from 2011 to 2021, we empirically test its impact mechanism and spatial spillover effects. The findings reveal that a 1% improvement in spatial quality leads to a significant 0.837% increase in urban entrepreneurial activity, with talent agglomeration being the primary mechanism. The entrepreneurial promotion effect of spatial quality exhibits multi-dimensional heterogeneity: it significantly boosts entrepreneurial activity in medium-sized and small cities, but this effect is not significant in large cities. Compared to non-resource-based cities, the entrepreneurial promotion effect of spatial quality is more pronounced in resource-based cities. The effect is not significant in central region cities compared to those in the eastern and western regions. Spatial quality has no significant impact on entrepreneurial activity in the agriculture and manufacturing sectors, indicating a certain degree of spatial exclusivity in entrepreneurial location choices influenced by spatial quality. These findings offer valuable insights for promoting urban spatial quality enhancement and facilitating the precise supply of entrepreneurship incentive policies.
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