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Entrepreneurship in the transition region: an analysis based on the Life in Transition Survey

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Author Info

  • Elena Nikolova

    ()
    (EBRD)

  • Frantisek Ricka

    (EBRD)

  • Dora Simroth

    (European School for Management and Technology)

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    Abstract

    Entrepreneurial activity is a key contributor to economic growth, innovation and the development of a market economy in transition countries. Data from the Life in Transition Survey reveal that financial sector development and access to credit are the most important drivers of entrepreneurship. Education is associated with a higher probability of trying to set up a business, but not with more entrepreneurial success. Women are less likely to attempt to set up a venture but no less likely to succeed than men once they try. Furthermore, entrepreneurial activity develops in clusters. An individual is more likely to try – and succeed – in setting up a business in a region that is already home to many entrepreneurs.

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    Bibliographic Info

    Paper provided by European Bank for Reconstruction and Development, Office of the Chief Economist in its series Working Papers with number 141.

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    Length: 31 pages
    Date of creation: Feb 2012
    Date of revision:
    Publication status: Published in Working papers 141, European Bank for Reconstruction and Development
    Handle: RePEc:ebd:wpaper:141

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    Postal: One Exchange Square, London EC2A 2JN
    Web page: http://www.ebrd.com/pages/research/publications/workingpapers.shtml
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    Keywords: entrepreneurship; transition economies; Life in Transition Survey;

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    1. Mariassunta Giannetti & Andrei Simonov, 2009. "Social Interactions and Entrepreneurial Activity," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 18(3), pages 665-709, 09.
    2. Enrico Berkes & Ugo Panizza & Jean-Louis Arcand, 2012. "Too Much Finance?," IMF Working Papers 12/161, International Monetary Fund.
    3. Henry Chen & Paul Gompers & Anna Kovner & Josh Lerner, 2010. "Buy Local? The Geography of Venture Capital," NBER Chapters, in: Cities and Entrepreneurship National Bureau of Economic Research, Inc.
    4. John McMillan & Christopher Woodruff, 2002. "The Central Role of Entrepreneurs in Transition Economies," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 153-170, Summer.
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