Abstract
It was acknowledged that institutional environment plays important role for shaping entrepreneurial behavior in transition economies. The present study investigates the influence of entrepreneurs’ perceptions of institutional environment on their entrepreneurial plans in a large representative sample from a transition economy. The findings reveal that institutional environment has a significant influence on entrepreneurial plans and that firm age and size moderate the effect of institutional environment on entrepreneurial plans. The paper provides recommendations for future research and a discussion of practical implications.
Highlights
During the last 25 years countries in Central and Eastern Europe (CEE) including Bulgaria experienced a transition from centrally planned to market economy, which was a complex process involving radical economic and political transformations (Dana and Ramadani, 2015)
The interaction term ATTITUDES x FIRM_AGE has a statistically significant positive impact (p < 0.05) on PLANS, granting support to Hypothesis 4 and suggesting that with increasing the firm age the probability of reporting entrepreneurial plans is higher for entrepreneurs, who perceive the attitudes of local authorities toward private business as positive and supportive
The interaction term LEGAL x FIRM_AGE shows a significant and positive effect on the dependent variable (p < 0.05), implying that with increasing the firm age the probability of reporting entrepreneurial plans is higher for entrepreneurs who perceives the legal framework as very good or relatively good
Summary
During the last 25 years countries in Central and Eastern Europe (CEE) including Bulgaria experienced a transition from centrally planned to market economy, which was a complex process involving radical economic and political transformations (Dana and Ramadani, 2015). The final section outlines conclusions, limitations of the study and recommendations for future research
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