Evaluating the Role of the Border of the Former Habsburg Empire for Current Entrepreneurial Intentions. A Case Study From the North-Eastern Region of Romania

Abstract

In this paper, we aim to assess the role of being part of the former Habsburg Empire on current entrepreneurial intentions in a particular area. It is about the North-Eastern region of Romania. Further, we intend to evaluate the determinants of Romanians’ inclination to become self-employed within the next five years. We have two samples: 285 individuals that belong to a former Habsburg territory, called Bukovina, and 1.772 who reside in counties that were never part of this former Empire. When applying binary logistic regressions, the features common to those two are related to marital status, the option that most of the current income results from the private sector, and the circumstance of already being engaged in self-employed activities. The model linked with the region of Bukovina has some peculiarities. It means that the intention to become an entrepreneur positively correlates to individual decision-making ability. This intention also has to do with the fact that the fathers were / still are business owners. It also negatively correlates with uncertain economic situations. The second model emphasizes the positive influence corresponding to having the opportunity to lead a group of people at the workplace. The same logic applies when it comes to the following: exercise high control of the business, have close friends who encourage them to start their businesses or find former or current entrepreneurs among them. Finally, the negative ones concern the trust in political parties and the fear of risks or unforeseen situations.