Impediments on the way to entrepreneurship. Some new evidence from the EU's post-socialist world

Abstract

Purpose – 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). Design/methodology/approach – A rich data set obtained from the Flash Eurobarometer Survey on Entrepreneurship 2007 is used, while a binomial probit regression model is employed. Findings – 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. Research limitations/implications – 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. Originality/value – 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.