The Role of Business Environment for Entrepreneurship in Transition Countries: The Case of Kosovo and Macedonia

Session

Management, Business and Economics

Description

This study gives an overview of firm capability and environmental characteristics on the SME’s growth at different stages of transition economies. The establishment and growth of new enterprises is central to the transition process (Olson, 1992). The development of the entrepreneurial sector is sensitive to the institutional environment with a sharp distinction between the more market-oriented economies. Successful entrepreneurship depends not only on initial conditions in the transition economies but also on the speed and consistency with which the reform process has been applied (Estrin, 2005).

The aim of the proposed research is to analyze further the features of SMEs growth and Entrepreneurship in Kosovo and Macedonia using the Business Environment and Enterprise Performance Survey (BEEPS) conducted by the World Bank/EBRD in 2013 for (n=202) firms in Kosovo and (n=360)in Macedonia to test a number of hypotheses regarding the nature and the main characteristics of firm growth and the key business environment indicators in two countries and comparison of them. Holcombe (1998) argues that more rapid advancement brings more entrepreneurial opportunities, and more entrepreneurial opportunities produce greater incentives for potential entrepreneurs to become more alert to them. Entrepreneurship generates more entrepreneurship. In contrast, a stagnant economy blunts the incentives for entrepreneurial activity, and can remain stagnant because of the lack of entrepreneurial opportunities. The countries in transition economies developed SMEs mainly because of necessity for employment opportunity, rather than catching an opportunity.

Keywords:

Entrepreneurship, Transition Countries, Firm and Institutional Environment, Economic Growth

Session Chair

Nehat Ramadani

Session Co-Chair

Uragan Alija

Proceedings Editor

Edmond Hajrizi

ISBN

978-9951-437-54-7

Location

Durres, Albania

Start Date

27-10-2017 4:45 PM

End Date

27-10-2017 6:15 PM

DOI

10.33107/ubt-ic.2017.274

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Oct 27th, 4:45 PM Oct 27th, 6:15 PM

The Role of Business Environment for Entrepreneurship in Transition Countries: The Case of Kosovo and Macedonia

Durres, Albania

This study gives an overview of firm capability and environmental characteristics on the SME’s growth at different stages of transition economies. The establishment and growth of new enterprises is central to the transition process (Olson, 1992). The development of the entrepreneurial sector is sensitive to the institutional environment with a sharp distinction between the more market-oriented economies. Successful entrepreneurship depends not only on initial conditions in the transition economies but also on the speed and consistency with which the reform process has been applied (Estrin, 2005).

The aim of the proposed research is to analyze further the features of SMEs growth and Entrepreneurship in Kosovo and Macedonia using the Business Environment and Enterprise Performance Survey (BEEPS) conducted by the World Bank/EBRD in 2013 for (n=202) firms in Kosovo and (n=360)in Macedonia to test a number of hypotheses regarding the nature and the main characteristics of firm growth and the key business environment indicators in two countries and comparison of them. Holcombe (1998) argues that more rapid advancement brings more entrepreneurial opportunities, and more entrepreneurial opportunities produce greater incentives for potential entrepreneurs to become more alert to them. Entrepreneurship generates more entrepreneurship. In contrast, a stagnant economy blunts the incentives for entrepreneurial activity, and can remain stagnant because of the lack of entrepreneurial opportunities. The countries in transition economies developed SMEs mainly because of necessity for employment opportunity, rather than catching an opportunity.