Entrepreneurship in Post-Conflict Transition : The Role of Informality and Access to Finance
The authors examine the factors affecting the transition to self-employment in Bosnia and Herzegovina, using the World Bank Living Standard Measurement Survey panel household survey for the years 2001-2004. In the beginning of the sample, the count...
| Main Authors: | , , |
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| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
2012
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| Subjects: | |
| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090518152429 http://hdl.handle.net/10986/4129 |
| Summary: | The authors examine the factors
affecting the transition to self-employment in Bosnia and
Herzegovina, using the World Bank Living Standard
Measurement Survey panel household survey for the years
2001-2004. In the beginning of the sample, the country
changed its legal framework, with the primary aim to promote
labor market flexibility and to encourage entrepreneurial
activity. The analysis identifies individuals that switched
to self-employment (employers and own account) during the
sample period and the viability of this transition, in terms
of business survival for more than one year. The results
suggest an important role for financing constraints.
Specifically, wealthier households are more likely to become
entrepreneurs and survive in self-employment. After
controlling for household wealth, having an existing bank
relationship increases the likelihood of starting a business
with hired employees and increases the chances of survival
for the new entrepreneur. By contrast, overseas - and in
some cases domestic - remittances decrease the likelihood of
becoming an entrepreneur. |
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