Author:
Bednarikova Zuzana,Bavorova Miroslava,Ponkina Elena
Abstract
Purpose. This paper aimed to investigate factors that influence the intention of educated youth in remote areas of Siberia to start-up business under the specific conditions with post-communist legacy. Special attention is paid to the willingness of graduates to run a business in agriculture.
Methodology / approach. We surveyed 470 university students and applied logistic regression to analyze the probability of becoming self-employed.
Results. Study results reveal that being male, an existing family entrepreneurial tradition, and effort of respondents to increase their quality of life, such as a desire for a higher income and career efforts, improve the intention to be self-employed. Preference to live in rural areas decreases the entrepreneurial intention. We identified an important path dependency problem that arises from the low entrepreneurial literacy and tradition of the families because setting up a private business is a novelty in Russia.
Originality / scientific novelty. The Global Entrepreneurial Monitor Review ranks Russia among countries with the lowest entrepreneurial intention. This fact may threaten the development of the country as self-employment represents an important trigger for the economic development of a region, especially for its rural and remote part. Entrepreneurs in agriculture might help in re-cultivation of the abandoned land in Russian Siberia if the entrepreneurial education and incentives were set properly.
Practical value / implications. A promotion of entrepreneurship education at the universities, removing administrative barriers to business development, and launching programs to support young entrepreneurs, especially in rural areas, might be crucial in increasing the entrepreneurial activity of youth. This study has important implications for policymakers and education system as youth entrepreneurship provides an opportunity to decrease unemployment, ensure the income of the rural population, and promote sustainable growth of rural areas.
Publisher
Institute of Eastern European Research and Consulting
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