An Econometric Analysis of the Effects of Human Resources and other Factors on Firm Creation

Intangible assets and knowledge are key drivers of today’s economy, called knowledge economy, as a consequence of globalisation process and information and communication technology development. Knowledge and intellectual capital became leading factors that provide basis for gaining superior performance and sustainable competitive advantage of firms in dynamic and uncertain business environments. Invisible goods based on knowledge are becoming more important in generating and successful managing businesses. The purpose of this research is to test the impact of human resources on creation of the firm or, in other words, to examine individual’s inclination toward becoming an entrepreneur in transition economy such as Bosnia and Herzegovina. While investigating the relationship between human resources and firm creation, additional social, economic and emotional factors are included in analysis. Proposed theoretical model is tested using logistic regression model to analyse a sample of 2.015 individuals in Bosnia and Herzegovina, as a participant in GEM project in 2014. Obtained results show that the amount of individual’s knowledge, skills and expertise and its capability to seek and recognize new entrepreneurial opportunities, considered as human resources owned by individual, increase probability to generate a firm in Bosnia and Herzegovina. Beside human resources, certain economic and social factors, such as work status and social perception of entrepreneurship as an attractive profession, are important for firm creation in Bosnia and Herzegovina.