Year: 2006
Type: report
Abstract: This paper investigates\ndifferences between opportunity and necessity entrepreneurs in terms of\nsocio-demographics, attitudes and perception of obstacles . We use the\n2004 Flash Eurobarometer Survey data. Explanatory variables include\ngender, age, education level and self-employed parents, risk tolerance,\nlocus of control, perceptions of four obstacles and country effects. The\n obstacle variables include the perception of availibility of financial\nsupport; administrative complexity; of access to information on new\nventure creation and an unfavorable economic climate. Using probit\nequations we investigate differences in the preference for self-employment\nof opportunity and necessity entrepreneurs. A probit equation is estimated\nrelating the explanatory variables to opportunity versus necessity\nentrepreneurship. Moreover, differences in the entrepreneurial engagement\nof opportunity and necessity entrepreneurs are investigated on the basis\nof a (ordered) multinomial logit model. Findings indicate that opportunity\nentrepreneurs have a higher preference for self-employment because of\nfamily encouragement. Also, opportunity entrepreneurs are found to\nperceive of administrative complexity and an unfavorable economic climate,\nnegatively influencing their entrepreneurial involvement, while this is\nnot the case for necessity entrepreneurs.
Language: English
Subfield: Management of Technology and Innovation
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W1743501976