The institutional environment factors of self-employment in transition economies: the case of Lithuania
The institutional environment factors of self-employment in transition economies: the case of Lithuania

Summary/Abstract: The article deals with topical issues such as the influence of institutional environment factors on self-employment in transition economies. The carried out literature analysis of institutional environment self-employment factors allowed us to identify the main trends where the influence of institutional environment factors on self-employment occur; it also allowed us to determine that the influence of institutional environment factors on self-employment can be threefold: positive, negative and unclear (positive and negative). Merely the positive impact on the start-up of self-employment have business support measures and simplified business start-up procedures. The negative impact on the start-up of self-employment have such factors as inequality in social guarantees, market entry barriers, the large size of the public sector. The duration of self-employment is negatively affected by business development barriers such as frequent changes in tax legislation, corruption, shadow economy and others. The influence of problem areas (for the start-up of self-employment and its duration is strict labour market regulation, for the duration of self-employment is business support measures) on self-employment was investigated by expert evaluation method. According to experts, strict labour market regulation influences the self-employment only negatively, while the business support measure is the factor that lengthens the duration of self-employment.

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