IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Explaining engagement levels of opportunity and necessity entrepreneurs

  • Roy Thurik
  • Ingrid Verheul
  • Isabel Grilo
  • Reena Bhola

This paper investigates differences between opportunity and necessity entrepreneurs in terms of socio-demographics, attitudes and perception of 'obstacles'. We use the 2004 Flash Eurobarometer Survey data. Explanatory variables include gender, age, education level and self-employed parents, risk tolerance, locus of control, perceptions of four 'obstacles' and country effects. The 'obstacle' variables include the perception of availibility of financial support; administrative complexity; of access to information on new venture creation and an unfavorable economic climate. Using probit equations we investigate differences in the preference for self-employment of opportunity and necessity entrepreneurs. A probit equation is estimated relating the explanatory variables to opportunity versus necessity entrepreneurship. Moreover, differences in the entrepreneurial engagement of opportunity and necessity entrepreneurs are investigated on the basis of a (ordered) multinomial logit model. Findings indicate that opportunity entrepreneurs have a higher preference for self-employment because of family encouragement. Also, opportunity entrepreneurs are found to perceive of administrative complexity and an unfavorable economic climate, negatively influencing their entrepreneurial involvement, while this is not the case for necessity entrepreneurs.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.entrepreneurship-sme.eu/pdf-ez/H200610.pdf
Download Restriction: no

Paper provided by EIM Business and Policy Research in its series Scales Research Reports with number H200610.

as
in new window

Length: 46 pages
Date of creation: 25 Sep 2006
Date of revision:
Handle: RePEc:eim:papers:h200610
Contact details of provider: Postal: P.O. Box 7001, 2701 AA Zoetermeer
Phone: (+31) 79 341 36 34
Fax: (+31) 79 341 50 24
Web page: http://www.entrepreneurship-sme.eu/
Email:


More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:eim:papers:h200610. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Webmaster EIM)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.