Author(s):
1. Karin Širec,

Abstract:
The purpose of the paper is to explore the growth aspirations of Southeast European early-stage entrepreneurs. Our aim is to provide a clearer insight into the characteristics of early-stage entrepreneurs in Southeast European countries (Slovenia, Croatia, Macedonia, Romania, Serbia, Bosna and Herzegovina, Hungary, Greece) concentrating on the relationship between various dimensions of entrepreneurship (e.g., the newness of products/services they are offering, their technology orientation, internationalization, risk capital availability) and growth aspirations regarding future employment (as one of the many possible operational measures of entrepreneurial growth). The data for our analysis are obtained from the 2010 Global Entrepreneurship Monitor Adult Population Survey, in which entrepreneurs in the start-up phase were identified. Although not all early stage entrepreneurs’ expectations materialize, growth aspirations have proven to be a good predictor of eventual growth. At least some of the variability of the firm growth may be explained by the extent of the firms’ product/service novelty, their technology orientation, internationalization, and availability of risk capital. Previous research reveals that SMEs can overcome the disadvantages of their small size by using technology and internalisation to reach new customers and operate more efficiently. Often technology and internalisation are referred to as the most important dimensions of growth aspirations and can be used for strengthening of a firm from Southeast European countries. On the other hand, the potential of these countries’ firms to generate new products and services or to adopt existing ones is often their weakness. At least part of the explanation of the firm’s growth potential may be achieved by analysing the characteristics of entrepreneurial firms. We argue that the ability to generate new products or to adopt or imitate existing ones, ability to apply or create new technologies, ability for internationalisation of the business and availability of informal capital for investments are significantly correlated with the growth aspirations of the early-stage entrepreneurs. Therefore, we empirically investigate with the multinomial logistic regression the association between the dependent variable, represented by aspirations about the future firm’s growth of employment, and five covariates: the firm’s product/service novelty, technology orientation, internationalization, and availability of the risk capital. Our intention is to find out whether the selected covariates significantly impact the expected employment growth of the early-stage entrepreneurs. The obtained empirical results can have important entrepreneurial policy implications, namely that supporting measures should not be directed towards general support of entrepreneurship, but rather focus on the firms who are motivated for growth and who have high growth aspirations.

Key words:
growth aspirations, Global Entrepreneurship Monitor, Southeast European countries, early-stage entrepreneurs

Thematic field:
Measuring entrepreneurial activities

Date of abstract submission:
30.05.2012.

Number of visits:
458

Conference:
REDETE 2012