Youth Entrepreneurship in Visegrad Countries

Abstract

Objective : The aim of our paper is to analyse the entrepreneurial activity drivers of youth and young adults in Visegrad countries, considering the opportunity/necessity motivation dichotomy. Research, Design & Methods : We employ the Global Entrepreneurship Monitor data for young individuals (18 to 34 years) from V4 countries for years 2011 to 2013. We use the binomial logistic regression modelling with logit transformation. Separate models are constructed for youth and young adults, as well as for opportunity- and necessity-driven entrepreneurial activity. Findings: We found common drivers and distinctive attributes affecting involvement of young people in business start-up according to its motivation. Self-confidence and access to networks are universally important factors. In most examined cases, fear of failure and being a female reduces chance of business start-up. Especially among youth, being a student significantly inhibits involvement in enterprising efforts. Implications & Recommendations: In order to support youth entrepreneurship, emphasis should be put on education and training to build skills and knowledge required for business start-ups, together with capacity to spot opportunities, and reduce fear of failure. Formal and informal networking plays an important role in youth entrepreneurship. Contribution & Value Added: Based on empirical analysis, our findings point out the key drivers of entrepreneurial activity among young people in V4 countries. We show directions for policy makers aiming to foster entrepreneurship within young generation as both way to exploit available business opportunities, as well as reaction to necessity situations.