In this study, a quasi-experiment of the special economic zones (SEZs) in China was conducted to explore whether green industrial parks play a role in enhancing local entrepreneurship. A household-level panel dataset of 9-year data across counties was built to compare the effects of green and non-green SEZs on the participation of local residents in entrepreneurial activities in a difference-in-differences (DID) setting. According to the empirical results, SEZs can promote local entrepreneurial activities, and such effects are more evident for green ones. An examination of the channels was conducted to reveal that SEZs have an entrepreneurial impact by reducing financial constraints, creating a connection between customers and suppliers, and spreading knowledge. Green SEZs were found to promote entrepreneurship mainly by reducing financial constraints and spreading knowledge.
