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Entrepreneurial activity is a critical issue in the transition of economies attempting to reduce, or abolish state-owned monopoly enterprises. In many Central and Eastern European countries, privatization, restructuring, and failure of state-owned enterprises as consequences of the reforms typically led to a reduction of the size of the workplace. For example, in Poland, about 3.5 million employees lost their jobs in the period 1991–1996 (PEAD, 2003). After the collapse of communism in Europe, post-communist countries have undertaken reforms to liberalize their economies. These reforms stimulated the development in the private sector of small and medium-sized enterprises. New ventures provide a counterbalance to the loss of jobs at state-owned companies. In the period 1991–1996, new enterprises in the private sector in Poland created more than 1.8 million jobs. By the end of 2002, they provided work for 68% of the total employed persons (PEAD, 2003). Further, new ventures can play a critical role in stimulating economic growth. As a result of market reforms, the contribution of the private sector to Gross Domestic Product, e.g., in Hungary, went from 7% in 1988 to 85% in 1999 (World Bank, 2000). However, many new ventures do not survive the first year of operation. For example, in Poland, about 40–45% enterprises established in the period 1995–2000 failed after the first year of their existence (PEAD, 2003).

The purpose of this paper is to examine key factors influencing students' intent to create a new venture. Based on Ajzen's theory of planned behaviour and Autio's model of intention, it aims to develop a model of entrepreneurial intent that incorporates both human and environmental factors. Specifically, the proposed model aims to focus on three constructs to predict the entrepreneurial intent, i.e. general attitudes (toward money, change, and competiveness), the attitude toward entrepreneurship, and the perception of the university environment and regional start‐up infrastructure.

In June 2005, 35,040 students of medicine, law, and technical, natural, social and business science from seven universities in Austria (electronic survey) were contacted. The response rate was 8.10 per cent. A total of 2,124 cases were considered in the final analysis. A multiple linear regression model with attitudes, perceptions of environment conditions, and selected control variables (age, gender, field of study) was estimated to test the hypotheses.

With the exception of the attitude toward competitiveness, all other paths regarding general and specific attitudes are significant. Pertaining to the environment conditions, only significant effects of the university on students' interest in business founding were detected. Other environment factors have no impact on entrepreneurial intention among students in Austria. In addition to that, significant differences in entrepreneurial intent regarding age, gender and field of study were found. Despite variation in the intent level between students of different fields of study, any significant differences in the effects of predictor variables on the entrepreneurial intent among the investigated student population were not discovered.

Future research should place more emphasis on interaction between personal and environmental factors. Besides, students' social networks (family and friends) should be included in the analysis of entrepreneurial career decision. Practical implications – The universities in Austria should more extensively address entrepreneurship education to students of other subjects than business sciences. An important component of entrepreneurial training is a social learning process. In this respect, inviting successful entrepreneurs (role models) to the lectures or enabling students small business experience via interaction with local entrepreneurs can be viewed as supportive actions. Developing entrepreneurial skills as crucial life capacities should be the main target of all university faculties.

The paper lays the foundation for a better understanding of the “intent preconditions” in the context of new venture creation, particularly in the context of Austrian students.

The first paper by Hernando de Soto is titled, “Trust, Institutions and Entrepreneurship.” Hernando de Soto certainly needs no introduction. As the author of two best-selling books, The Other Path and The Mystery of Capital, and the founder of the Institute for Liberty and Democracy in Peru, Hernando de Soto has made his mark on examining critical issues related to economic development among poor people. In 1999, Time magazine chose Hernando de Soto as one of the five leading Latin American innovators of the century. Forbes magazine highlighted him as one of 15 innovators “who will re-invent your future.” The Economist magazine identified his Institute for Liberty and Democracy as one of the top two think tanks in the world. The essay in this volume, based upon a speech given at the University of North Carolina on October 26, 2004, examines the important relationships between institutions, trust, property rights, and the ability of entrepreneurs to participate in economic growth and development. This stimulating essay sets a foundation for much of what is discussed in this volume.

Failure plays a pivotal role in entrepreneurial learning. Knowledge of the learning process that enables an entrepreneur to re-emerge stronger after a failure, though considerable, is fragmented. This paper systematically collects relevant literature, assigns it to the stages of the experiential learning process (concrete experience, reflective observation, abstract conceptualization, active experimentation; Kolb, 1984), evaluates the research coverage of each stage and identifies promising avenues for future research.

This systematic literature review follows the guidelines articulated by Short (2009) and Tranfield et al. (2003), using Web of Science and EBSCO as primary data sources. Kolb’s (1984) experiential learning theory provides a basis for organizing the identified material into a framework of entrepreneurial learning from failure.

The literature provides insights on all stages of the process of entrepreneurial learning from failure. Particularly well elaborated are the nature of failure and its triggering effect for reflection, the factors influencing reflection, the contents of the resulting learning and their application in entrepreneurial re-emergence. Other topics remain under-researched, including alternative modes of recovery, the impact of personal attributes upon reflection, the cognitive processes underlying reflection, the transformation of failure-based observations into logically sound concepts and the application of this learning in non-entrepreneurial contexts.

This review provides the most complete overview of research into the process of entrepreneurial learning from failure. The systematic, theory-based mapping of this literature takes stock of current knowledge and proposes areas for future research.