Determinants of entrepreneurship in Europe

The aim of this thesis is to examine whether the public policy mechanisms (the business environment, the availability of financial resources, and the presence of business regulations) in Greece and in eight transition countries (Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia) facilitate or obstruct the upcoming and current entrepreneurs in setting up their businesses. The “Flash Eurobarometer Survey on Entrepreneurship, No 192” is used. This 2007 sample includes the 25 EU Member States, the United States, Iceland and Norway. Our main dependent variable asks respondents whether they are self-employed, in paid employment or without a professional activity. Explanatory variables include socio-demographic (gender, age, education) and perception (lack of financial support, administrative complexities, risk aversion, business environment, positive and negative attitude) variables. The most salient findings for both samples (transition countries and Greece) are related to the demographic characteristics of the respondents. Women seem to be very insecure about self-employment and thus it is less possible for them to become entrepreneurs as compared to men. Similarly, medium and high age people, compared to younger counterparts, have the appropriate characteristics and capabilities which will “lead” them to entrepreneurship. Additionally, for the sample of transition countries, the perception of administrative complexities and a negative attitude towards people who have failed in the past are negatively related to engagement in self-employment. On the contrary, ease on obtaining relevant information has a positive influence. The research on Greece suffers from small samples and the results are weak. From a policy point of view, a number of implications for policymakers come into view. Security and incentives should be provided to the groups of population that have low levels of engagement to entrepreneurship. In addition they should include in their agenda the remodeling of schemes concerning health insurance, income taxation, bankruptcy rules and credit allocation among others.