Determining Factors of Entrepreneurial Motivation: Evidence from EU Countries

• Main Authors: Angela Roman, Valentina Diana Rusu
• Format: Article
• Language: English
• Published: Ovidius University Press 2016-01-01
• Series: Ovidius University Annals: Economic Sciences Series
• Subjects: entrepreneurship; motivation of entrepreneurs; entrepreneurship opportunity; necessity entrepreneurs
• Online Access: http://stec.univ-ovidius.ro/html/anale/ENG/2016/2016-I-full/Section-II/10.Roman_Angela1.pdf

The aim of our paper is to identify the main determinants of entrepreneurial motivations and toempirically evaluate their impact in 18 EU member states, over the period 2002-2014. Theempirical analysis is performed based on data from the Global Entrepreneurship Monitor and theWorld Bank. In the econometric model, we considered as dependent variables, alternatively,opportunity-driven entrepreneurial activity and necessity-driven entrepreneurial activity. Asindependent variables we took into account 11 factors that could have an impact on themotivations of entrepreneurs. The empirical results indicate that the motivation of entrepreneurial activity is influenced byunemployment rates, inflation rates, tax rates, domestic credit to private sector, fear of failure,entrepreneurial intentions and perceived capabilities. Overall, our study highlights that macroeconomic conditions and the perception of theentrepreneurs about entrepreneurial activity are affecting significantly and with opposite signs theentrepreneurial activity depending on the motivation of entrepreneurs (opportunity or necessity).