FACTORS AFFECTING OPPORTUNITY AND NECESSITY-DRIVEN INTENTIONS OF ENTREPRENEURS: THE CASE OF SOUTH EAST EUROPE

Abstract

 We investigated the factors influencing the intention of entrepreneurs driven by opportunity (ODE) and entrepreneurs driven by necessity (NDE) in the countries of South-East Europe (SEE). The aim of the paper was to identify the key factors of entrepreneurial intentions of ODE/NDE and to propose measures the application of which can transform NDE into ODE and increase the contribution of total entrepreneurial activity to economic development. The Binomial Logistics Regression and Ordinary Logistics Regression were applied, using data for 125,444 entrepreneurs in seven countries of SEE. Our findings highlight that the intention of ODE is most influenced by entrepreneurial knowledge and experience, entrepreneurial alertness and social contacts and networks, while unemployment (as a work status) and low household income have a significant impact on the intention of NDE. The fear of failure has a negative influence on the intentions of both groups of entrepreneurs, but its impact is much more accentuated in NDE than in ODE.