Start-Ups

Explaining Engagement Levels of Opportunity and Necessity Entrepreneurs

Date Added: Sep 2006
Format: PDF

This paper investigates differences between opportunity and necessity entrepreneurs in terms of socio-demographics, attitudes and perception of 'Obstacles'. The authors use the 2004 Flash Euro barometer 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 availability of financial support; administrative complexity; of access to information on new venture creation and an unfavorable economic climate. Using probit equations they 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.