This research aims at appraising the determinants of entrepreneurship dynamics in the French administrative regions over the period 1993-2004. First, we highlight how the regional territory may be considered in a dualistic manner in order to explain the differentials between the regional activities of entrepreneurs. One may consider a regional territory either as an incentive system or as a cognitive system. By modifying individual trade-offs and/or easing the diffusion of information, the regional atmosphere indeed influences personal choices related to new firm creation. This theoretical approach then leads us to specify a dynamic model of entrepreneurial activity at the regional level. Based on Blundell and Bond’s (1998) methodology and on French regional data, we confirm Holcombe’s assumption (1998) that the creation of firms can be mainly explained by itself and can be viewed as an auto-regressive process. We also deduct from our econometric estimations that the unemployment rate and the available income positively impact entrepreneurship activity. Inversely, the size of existing firms may play the role of a barrier to entry into the regional market. Finally, institutional and cultural factors cannot be neglected as potential determinants of the creation of firms at the regional level, as illustrated by the significance of individual fixed effects.