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Entrepreneurs, expectations and business expansion: Lessons from Lithuania

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  • Ruta Aidis
  • Tomasz Mickiewicz

Abstract

This article applies a multinomial logit estimator to investigate which factors affect SME owners' expectations to grow their businesses in Lithuania. Our findings provide evidence that SME owners' human capital (education) matters and that growth expectations are positively related to exporting. In addition, we analyse the link between the perceptions of business constraints and growth expectations and find that the factors, which are perceived as main business barriers, are not necessarily those which are associated with reduced growth expectations. However, perceptions of corruption seem to affect growth expectations the most.

Suggested Citation

  • Ruta Aidis & Tomasz Mickiewicz, 2006. "Entrepreneurs, expectations and business expansion: Lessons from Lithuania," Europe-Asia Studies, Taylor & Francis Journals, vol. 58(6), pages 855-880.
    • Handle: RePEc:taf:ceasxx:v:58:y:2006:i:6:p:855-880
    DOI: 10.1080/09668130600830961
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    References listed on IDEAS

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    1. Paloma Lopez-Garcia, 2002. "Labour Market Performance and Start-Up Costs: OECD Evidence," CEP Discussion Papers dp0565, Centre for Economic Performance, LSE.
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