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

Author

Listed:
  • Elena Nikolova

    (EBRD)

  • Frantisek Ricka

    (EBRD)

  • Dora Simroth

    (European School for Management and Technology)

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.

Suggested Citation

  • Elena Nikolova & Frantisek Ricka & Dora Simroth, 2012. "Entrepreneurship in the transition region: an analysis based on the Life in Transition Survey," Working Papers 141, European Bank for Reconstruction and Development, Office of the Chief Economist.
    • Handle: RePEc:ebd:wpaper:141
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    More about this item

    Keywords

    entrepreneurship; transition economies; Life in Transition Survey;
    All these keywords.

    JEL classification:

    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • P2 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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