Entrepreneurship in Post-conflict Transition: The Role of Informality and Access to Finance

We examine new self-employment entry and its viability in Bosnia and Herzegovina, using a rich household survey for the years 2001-2004. We find that wealthier households are more likely to engage in viable self-employment and create employment suggesting an important role for financing constraints....

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Main Authors:	Demirgüç-Kunt, Asli, Klapper, Leora F., Panos, Georgios A.
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Remittances F240 Financing Policy Financial Risk and Risk Management Capital and Ownership Structure G320 Labor Demand J230 Entrepreneurship L260 Socialist Systems and Transitional Economies : Factor and Product Markets Industry Studies Population P230 Socialist Institutions and Their Transitions: Financial Economics P340
Online Access:	http://hdl.handle.net/10986/5637

id	okr-10986-5637
recordtype	oai_dc
spelling	okr-10986-56372021-04-23T14:02:23Z Entrepreneurship in Post-conflict Transition: The Role of Informality and Access to Finance Demirgüç-Kunt, Asli Klapper, Leora F. Panos, Georgios A. Remittances F240 Financing Policy Financial Risk and Risk Management Capital and Ownership Structure G320 Labor Demand J230 Entrepreneurship L260 Socialist Systems and Transitional Economies : Factor and Product Markets Industry Studies Population P230 Socialist Institutions and Their Transitions: Financial Economics P340 We examine new self-employment entry and its viability in Bosnia and Herzegovina, using a rich household survey for the years 2001-2004. We find that wealthier households are more likely to engage in viable self-employment and create employment suggesting an important role for financing constraints. Specifically, although having an existing bank relationship is not significantly related to the entry decision, it is positively related to the survival for new entrepreneurs and their employment creation. We also find a non-linear relationship between remittances and entry in that individuals not receiving remittances are more likely to enter self-employment; but, if they do receive them, the likelihood of starting a business increases in the fraction of wealth received from domestic remittances. Finally, people working in the informal sector are more likely to become viable entrepreneurs, particularly those provided with loans from micro-credit organizations. These findings support the perception of the informal sector as an incubator for formal self-employment in the early years of transition. 2012-03-30T07:33:47Z 2012-03-30T07:33:47Z 2011 Journal Article Economics of Transition 09670750 http://hdl.handle.net/10986/5637 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article Bosnia and Herzegovina
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Remittances F240 Financing Policy Financial Risk and Risk Management Capital and Ownership Structure G320 Labor Demand J230 Entrepreneurship L260 Socialist Systems and Transitional Economies : Factor and Product Markets Industry Studies Population P230 Socialist Institutions and Their Transitions: Financial Economics P340
spellingShingle	Remittances F240 Financing Policy Financial Risk and Risk Management Capital and Ownership Structure G320 Labor Demand J230 Entrepreneurship L260 Socialist Systems and Transitional Economies : Factor and Product Markets Industry Studies Population P230 Socialist Institutions and Their Transitions: Financial Economics P340 Demirgüç-Kunt, Asli Klapper, Leora F. Panos, Georgios A. Entrepreneurship in Post-conflict Transition: The Role of Informality and Access to Finance
geographic_facet	Bosnia and Herzegovina
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	We examine new self-employment entry and its viability in Bosnia and Herzegovina, using a rich household survey for the years 2001-2004. We find that wealthier households are more likely to engage in viable self-employment and create employment suggesting an important role for financing constraints. Specifically, although having an existing bank relationship is not significantly related to the entry decision, it is positively related to the survival for new entrepreneurs and their employment creation. We also find a non-linear relationship between remittances and entry in that individuals not receiving remittances are more likely to enter self-employment; but, if they do receive them, the likelihood of starting a business increases in the fraction of wealth received from domestic remittances. Finally, people working in the informal sector are more likely to become viable entrepreneurs, particularly those provided with loans from micro-credit organizations. These findings support the perception of the informal sector as an incubator for formal self-employment in the early years of transition.
format	Journal Article
author	Demirgüç-Kunt, Asli Klapper, Leora F. Panos, Georgios A.
author_facet	Demirgüç-Kunt, Asli Klapper, Leora F. Panos, Georgios A.
author_sort	Demirgüç-Kunt, Asli
title	Entrepreneurship in Post-conflict Transition: The Role of Informality and Access to Finance
title_short	Entrepreneurship in Post-conflict Transition: The Role of Informality and Access to Finance
title_full	Entrepreneurship in Post-conflict Transition: The Role of Informality and Access to Finance
title_fullStr	Entrepreneurship in Post-conflict Transition: The Role of Informality and Access to Finance
title_full_unstemmed	Entrepreneurship in Post-conflict Transition: The Role of Informality and Access to Finance
title_sort	entrepreneurship in post-conflict transition: the role of informality and access to finance
publishDate	2012
url	http://hdl.handle.net/10986/5637
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Entrepreneurship in Post-conflict Transition: The Role of Informality and Access to Finance

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