The purpose of this paper is to shed light on traditionally important determinants (demographics, peoples’ perceptions, and environmental characteristics) of entrepreneurial engagement in the post-socialist region of the European Union (EU).
A rich data set obtained from the Flash Eurobarometer Survey on Entrepreneurship 2007 is used, while a binomial probit regression model is employed.
Gender, mother's occupation, unemployment, and economic growth are reported as significant determinants of entrepreneurship. The econometric results also suggest that lack of financial resources, individual's risk aversion, a large number of start-up procedures, and increased tax rates are all positively, rather than negatively related to entrepreneurial engagement.
It is suggested that the recent structural changes that have occurred in the examined region, as well as the transition process under which the examined countries operate have influenced the attitude of individuals towards entrepreneurial engagement.
The study provides useful information in relation to the attitude of a post-socialist society towards structural issues which have possibly impeded its engagement to entrepreneurship. Both the geographic area (post-socialist European countries) and the time the data were collected (i.e. three years after the examined countries’ accession to the EU) can be perceived as factors of great interest for both policy makers and entrepreneurs.
The author would like to thank the editor and the referees for their helpful suggestions. The author is particularly indebted to Gael Terzopoulos for his support and valuable suggestions at the beginning of this research work. Special thanks are due to Peter van der Zwan and Sarah Drakopoulou Dodd for commenting on earlier versions of the paper. This study was partially developed when the author was studying at the Erasmus University Rotterdam. The views expressed here are those of the author and should not be attributed to the European Commission.
K. Batsakis, G. (2014), "Impediments on the way to entrepreneurship. Some new evidence from the EU's post-socialist world", Journal of Small Business and Enterprise Development, Vol. 21 No. 3, pp. 385-402. https://doi.org/10.1108/JSBED-04-2014-0062
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