Key business restart drivers in Slovakia

Abstract

PILKOVÁ ANNA, HOLIENKA MARIAN, MUNK MICHAL: Key business restart drivers in Slovakia. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 2013, LXI, No. 7, pp. 2617-2622

Business Restart in Visegrad Countries

“…On the other hand, having a fear of failure that would prevent an individual from starting a new business showed a negative relationship to business restart, decreasing its probability by 1.11 times. This finding corresponds with the previous findings in this field (Hessels et al, 2011;Pilkova et al, 2013a;Wagner, 2002), supporting the robustness of considering the fear of failure as an important driver of business restart. However, we did not expect that the relationship of opportunities perception and the perception of the high social status of successful entrepreneurs showed no significant relationship to restarting a business after entrepreneurial exit.…”

“…As for demographic characteristics, our findings suggest that with increasing age the probability of restart after business discontinuation decreases. This corresponds not only with the general pattern of decreased probability of entrepreneurial entry with increasing age, but also with the findings of other studies on business restart (Pilkova et al, 2013a;Stam et al, 2008;Wagner, 2002). Here we might conclude that generally occurring descending activity with rising age due to increasing opportunity costs of entrepreneurship applies also to business restart as a specific type of entrepreneurial activity.…”

“…The attention devoted by entrepreneurship research to the issue of business restart is rather scarce, especially compared to the scope of research focused on novice entrepreneurs or drivers of entering the entrepreneurship process in general. However, the recent studies by Hessels et al (2011) or Simmons et al (2014) together with our study on business restart in Slovakia (Pilkova et al, 2013a) brought interesting insights to this topic as well as identified several implications. One of the latter, in our opinion, is the investigation into the quantitative aspects and restart drivers in the context of Czech Republic, Hungary, Poland and Slovak Republic, a regional group of Visegrad or V4 countries.…”

“…Because the majority of individuals are supposed to be risk averse by nature, increased fear of failure is expected to act as an inhibitor of entrepreneurial action (Arenius & Minniti, 2005). Empirical research has provided certain evidence supporting these expectations considering entrepreneurial activity in general (Arenius & Minniti, 2005;Wagner, 2007) as well as concerning business restart in particular (Hessels et al, 2011;Pilkova et al, 2013a;Wagner, 2002). On the other hand, it has also revealed limitations of the risk aversion effect related to previous employment status (Caliendo et al, 2009).…”

“…Therefore, both these basic demographic characteristics might play important roles in determining entrepreneurship process entry by an individual. Where business restart is especially concerned, previous findings suggest that age plays an important role in determining business restart (Stam et al, 2008;Wagner, 2002), and some studies also proved gender to have significant influence (Hessels et al, 2011;Pilkova et al, 2013a), with males restarting discontinued businesses more often than their female counterparts.…”