A Set of Factors Related to the Opportunity Motivation: Analysis of Early-stage Entrepreneurs from SEE

Abstract

This paper focuses on a set of factors related to the opportunity motivations of early-stage entrepreneurs, such as entrepreneur’s perceptions and socio-demographic factors. The research area of this paper includes: fear of failure, social networking, entrepreneur’s knowledge, skills and experience, and perception of business opportunity; and socio-demographic characteristics of entrepreneurs, such as the age, gender, level of education and household income. The data has been provided by Adult Population Survey, as part of the Global Entrepreneurship Monitor. The sample includes data collected in 2014, from 12,023 adults by interview methods, which implies valid answers of 692 early-stage entrepreneurs, i. e. a total of 415 early-stage entrepreneurs driven by opportunity motivation. The respondents are located in the Southeast Europe (SEE); and settled in six countries: Greece, Hungary, Romania, Croatia, Bosnia and Herzegovina and Slovenia. According to SPSS Statistics, the empirical research was processed using the Binomial Logistics Regression. Two hypotheses were set up to test the conceptual model. According to the theory and research results, the model consisted of determinants related to the opportunity motivations of early-stage entrepreneurs, has been developed. Motivation as a dependent variable has been measured by the TEA Opportunity index. Thus, the opportunity motivation is found to be related to the entrepreneur’s perception, and socio-demographics factors. Determinants such as the fear of failure and perception of business opportunity contribute to a higher likelihood in the modelling opportunity motivation. The age, gender, level of education and household income also contributed to the developed model. The lower and middle household income of entrepreneurs, secondary degree education, gender as a male, and the entrepreneurs’ age about 45-64 significantly added to the model prediction. Social networking and KSE's did not have a significant role on the entrepreneur's motivation according to the empirical results and the developed model. In addition to improving theoretical material from the field of entrepreneurship, the model also contributes to this work.