DESPERATE ENTREPRENEURS: NO OPPORTUNITIES, NO SKILLS
DESPERATE ENTREPRENEURS: NO OPPORTUNITIES, NO SKILLS

Author(s): Monika Mühlböck, Julia Warmuth, Marian Holienka, Bernhard Kittel
Subject(s): Social Sciences, Economy
Published by: Vysoká škola ekonomická v Praze
Keywords: Entrepreneurship; economic crisis; entrepreneurial skills; opportunities
Summary/Abstract: Promoting entrepreneurship has become an important policy strategy in Europe in the hope to stimulate the crisis-shaken economy. In this paper, we caution against undue expectations. Using data from the Global Entrepreneurship Monitor, we find that a considerable proportion of the new entrepreneurs start a business despite a negative perception of business opportunities as well as lack of confidence in their own entrepreneurial skills. We extend existing entrepreneurship theories to account for this phenomenon. Testing the hypotheses derived from our model, we find that these people turn to entrepreneurship due to lack of other options to enter the labour market.

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