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2018 | Buch

Entrepreneurship in Post-Communist Countries

New Drivers Towards a Market Economy

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Über dieses Buch

This volume analyzes the barriers to, as well as new drivers for, entrepreneurial development in post-communist countries. The contributors present various country studies, mainly in the Balkans region, and investigate entrepreneurial behavior and best practices, financial instruments, factors for the success of small and medium-sized companies, and related policy implications. The book will appeal to scholars, policymakers and professionals interested in entrepreneurial obstacles and challenges in the countries of the Balkans region.

Inhaltsverzeichnis

Frontmatter
Introduction to “Entrepreneurship in Post-Communist Countries: New Drivers Towards a Market Economy”
Abstract
The volume is a collection of 14 interconnected chapters that address and analyse the most current issues in the field of entrepreneurship in post-communist countries. There are certainly an increasing number of scholarly monographs, textbooks and edited volumes written by researchers or practitioners on the subject. However if we are to improve entrepreneurial activity to boost post-transition economies, we need to analyze a number of questions. The central one is how to formulate fine-tuning strategies for economic development and rejuvenation. This book presents research findings that help to understand entrepreneurship and related issues in specific countries. The ultimate aim of the volume is to unravel the most critical barriers, from both internal and external environment, to the process of entrepreneurship and enterprise development in different socioeconomic contexts.
Jovo Ateljević, Jelena Budak

Entrepreneurship in Post-Transition Context

Frontmatter
The Influence of the Motives of Entrepreneurial Activity on Economic Growth of Developing Countries in Southeast Europe
Abstract
In addition to the assumption that entrepreneurial activity affects economic growth and development in both developed and developing countries, Stefanovic et al. assume that the motives of entrepreneurship affect economic growth. The aim of the chapter is to prove the impact of necessity/opportunity-driven early-stage entrepreneurial activity, within total early-stage entrepreneurial activity, on economic growth in both the developed and developing countries. The authors perceive economic growth over the gross domestic product rate (GDPR), but also through the unemployment rate, which they believe can have a significant impact on the achievement of the objectives of economic growth in developing countries. As for the developing countries of Southeast Europe, survey results provide confirmation of the authors’ argument that the total early entrepreneurial activity affects growth of GDPR. Also, they find that opportunity-driven entrepreneurship has a positive effect, although this impact is not large, on increase of GDPR as well as on reduction of unemployment rate, but not the necessity-driven entrepreneurship. Possible explanation is that entrepreneurship out of necessity does not affect much the general reduction of unemployment because it leads to self-employment, i.e., it contributes to resolution of the problem of layoff in big companies but not to employing new workers to reduce total unemployment in the country.
Suzana Stefanović, Maja Ivanović-Đukić, Vinko Lepojević, Jovo Ateljević
Financial Instruments for Boosting Entrepreneurship in Selected Post-Communist EU Countries
Abstract
The EU policy strives to smooth the huge differences in the development of entrepreneurship by allowing convergence regions to use a portion of the EU funds with other financial instruments to spur the competitiveness and economic growth. It does it via three mechanisms: grants from the ESI funds within the Cohesion policy that are accessed via national calls for application; local financial intermediaries that offer lower interest rates for certain programmes by help of the European Investment Bank and/or European Investment Fund, and by applying directly for the programmes managed by the European Commission. Besides the specific types of the available EU funds and the main aim of their usage, the operational programmes contribution to boosting the competitiveness of the new EU member states have not been widely researched. It is mostly due to the late evaluation results of certain programme achievements that spread years ahead of the programmes’ closure. The purpose of this chapter is to present the variety of financing schemes available to SMEs and the importance of public policy for SME development.
Mihaela Grubišić Šeba
FDI Flows and Regional Development: Lessons for Transition Countries
Abstract
Foreign affiliates of multinational enterprises and FDI flows play an increasing role in regional economic development. As firms decide about the engagement in a particular location, public authorities try to influence the firm-location decision. If regional policies succeed to include multinational enterprises in their development strategy in the interest of both, the region has gained a powerful ally in regional economic development. Hence, public authorities choose the (right) firm by setting incentives such that regional and firm goals are aligned, whereas firms choose the (best) location by calculating the expected return among different regions. In this contribution, we outline a theoretical approach based on the idea that the location choice for foreign affiliates of MNEs is a two-sided matching problem between firms and regions. We show in the empirical analysis that the huge heteroscedasticity among regions allows different regional strategies to find a niche and to attract firms according to their profile.
Kurt A. Hafner, Jörn Kleinert
Sources of Financing in the Process of Enterprise Restructuring Focusing on Transitional Countries
Abstract
Finding adequate funding sources in the process of restructuring of companies is a very important issue for the management of each company. In this sense, it is extremely important to recognize the symptoms in time and properly define the causes of the crisis. Restructuring means continuous process which changes the existing structure, strategy, and/or position of the company in order to increase the efficiency and effectiveness of operations, which should result in the creation of wealth for the owners. In economic theory and practice, there are a number of funding sources that can be used in the process of restructuring the company, which can contribute to achieving the strategic objectives of restructuring in a direct or an indirect way. The scientific aim is to use econometric analyzer to connect companies among themselves and to quantitatively evaluate estimates, effects, and differences of individual sources of financing enterprises in restructuring processes in the Republic of Serbia and Bosnia and Herzegovina in comparison with the countries of Western, Central, and Eastern Europe. In some cases, managers are not sufficiently aware of the crisis and are simply not in a position to distinguish the current decline of the deeper causes of the crisis in business. In such situations, it is the engagement of external experts for restructuring of the company. Also, in the creation of a restructuring strategy, it is necessary to respect the contingent approach.
Drаgаn Мilоvаnоvić, Saša Vučenović, Igor Mišić
Dominant Motives of Entrepreneurial Behaviour in Transitional Countries
Abstract
This chapter aims to show how transition environment encourages entrepreneurial activities in relation to other more or less developed countries. The basic objective of this study is identification of fundamental entrepreneurial motives, necessity and opportunity, depending on general and entrepreneurial opportunities according to the stages of entrepreneurial process. One-factor analysis of variance was used to compare groups and establish differences, while relationships and connections between selected features of development degrees, entrepreneurial activities, and motives of entrepreneurial projects were analysed by the Pearson correlation coefficient. The analysis of available data and selected features confirmed a great dependence of motives of entrepreneurial projects and conditions of the environment of different degrees of development that determine differences to all observed features directly or indirectly connected with entrepreneurial decisions.
Božidar Leković, Slobodan Marić
The Distinctiveness of Female Entrepreneurship in Post-Transition Countries: The Case of Central Europe and the Baltic States
Abstract
Female entrepreneurship has an increasingly significant role in the development of the world economy. In developed countries, there are special incentives and support for the development of entrepreneurship, which are designed for women. However, in post-transition countries, the situation is different, because the initiatives they spawn face obstacles that discourage the development of female entrepreneurship. The main purpose of this chapter is to investigate the influence of factors (technical and technological development, economic, demographic, institutional, and cultural factors) on female entrepreneurship in post-transition economies. The aim of this chapter is to identify the influences of the external environment on female entrepreneurship by using appropriate methodology, as well as to rank the post-transition economies on the basis of macro-level factors, in order to identify the countries that have the most favorable environment for female entrepreneurship. The study includes post-transition countries in the European Union, i.e., the Baltic States, as well as transition countries which belong to Central Europe. The study is conducted by applying the VIKOR method and method for determining attribute weight based on the subjective and objective integrated approach, as well as the correlation and comparative analysis.
Jelena Petrović, Snežana Radukić
The Local Economic Impact of Universities: An International Comparative Analysis (France and Hungary)
Abstract
The realization that certain economic units, universities, or other entities have an impact on the economy of their region has come more and more into prominence. The topic of the examination of economic impact is especially interesting and exciting when we can compare regions which have different levels of development, yet have the presence of an internationally successful university. The different methods used in the literature make the results difficult to compare; we use the same method to investigate universities in different countries: a multiplier-based approach was used for the first and second missions. The goal of our study is to unravel the effects and impact of the University of Szeged (Hungary) and the University of Lorraine (France) regarding their local economy.
Balázs Kotosz, Marie-France Gaunard-Anderson, Miklós Lukovics

Small and Medium-Sized Entrepreneurship in the Balkans Region

Frontmatter
The Impact of Tangible and Intangible Assets on the SMEs’ Success: The Albanian Case
Abstract
After more than two decades of transition towards a market economy, Albanian businesses are still facing a lot of challenges. Currently, new enterprises constitute the vastest majority of private businesses operating in Albania, and because of their size and adaptability they are more likely to be the main source of job creation. Focusing on the relationship between tangible and intangible assets, this chapter draws attention to the importance of distinctive competencies, capabilities, skills and good reputation as the determining factors of a firm’s success. Finally, this chapter is essential because it ascertained that intangible resources have greater impact than tangible resources as in regard to the performance of SMEs.
Ylvije Boriçi Kraja
The Role of Networking in the Company’s Growth Process
Abstract
Small and medium-sized enterprises (SMEs) that experience growth encounter various barriers in the business ecosystem. Government regulations, bureaucracy, hindered access to finance, and corruption are among the most common barriers that can significantly hinder the growth process or even destroy enterprises. SMEs are exposed to various factors of the business ecosystem. Developed and supportive business ecosystems help SMEs minimise such barriers or to signal them which choices and behaviours are generally accepted within society. In transition economies that are often characterised by weak institutional development, underdeveloped financial markets, and excessive bureaucracy, it takes SMEs longer to achieve growth resulting in higher transaction costs. To speed up the process of achieving growth and lower transaction costs when relying on external sources of finance, SMEs tend to use their own network of suppliers, large clients, family and friends, bank officers, accountants, lawyers, and business support organisations. If using such networks leads to no results, SMEs make other choices, though not necessary socially moral ones. This chapter aims to show that, when obtaining external sources of finance, SME owners and managers rely on advice from their own network and especially seek out those who can speed up administrative processes. To identify if there is a correlation between owners/managers’ network and leverage of the SME, a survey was conducted on 108 Croatian SMEs that had been operating for more than 12 months. The financial data of these SMEs was sourced from publicly available financial reports. The results of the research indicate the type of networking that enables enterprises (SMEs) to grow and develop faster. Furthermore, the chapter provides recommendations for further research in order to gain a better understanding of the impact of networking in the success of SMEs.
Anamarija Delić, Julia Perić, Tihana Koprivnjak
The Effect of EU Membership on Public Procurement for SMEs in Post-Transition Countries
Abstract
The government procurement markets in post-transition countries make a significant share of national economy. The literature on public procurement and involvement of SMEs noted severe entry barriers for companies to access public procurement markets, and the set of policies were established in the EU to promote SMEs’ involvement in public procurement. However, it remains unclear what are the effects in the acceding and new EU member states. Based on the experience of companies in Croatia and Bosnia and Herzegovina (BiH), the analysis of obstacles for SMEs to participate in the public procurement in two post-transition countries is offered. The survey evidence collected in national business sector is used to explore if there were differences observed between two countries, and do they stem from the different EU membership status. It contributes to the existing literature by providing a comparative study of the EU effects on public procurement for small businesses in a unique post-transition context.
Sunčana Slijepčević, Jelena Budak, Edo Rajh
The Effect of Market Liquidity on the Company Value
Abstract
Market liquidity, as an important factor of making investment decisions, provides security for the investors and reduces the risk of not being able to close their positions without significant loss of financial assets. Less liquid market brings higher yields due to greater price volatility but withdraws a greater risk. Liquidity is considered a primary factor in the development of capital markets. Researches made in emerging markets showed that there was 80% correlation between the spread of purchasing and selling prices and market liquidity. With the reduction of difficulties in trading related to prices, volume, and market capitalization, the level of market liquidity increases. As cash flow and control rights of the company are essentially determined by company shares, the marketability of shares will undoubtedly play a decisive role in corporate governance, assessing the value and performances of the company. The purpose of this chapter is to show that market liquidity has a positive impact on the performance and operating profitability of the companies and thereby on the value of the companies. Empirical analysis proved that companies with more liquid shares, traded on more regular basis, had higher operating income which was increasing business value. Another basis for the growing performance of the companies with liquid shares is by increasing the incentive effects of managerial contract founded on performance. Information feedback on the market price of shares that managers and other shareholders are getting is responsible for the better performance of companies whose shares are quoted on the more liquid capital markets.
Tajana Serdar Raković
Assessing Entrepreneurial Intentions, Motivations and Barriers Amongst WBC Students Through Developing a Network of Co-Creative Centers–iDEA Labs
Abstract
Activating students to think and act in entrepreneurial terms during their studies remains a big challenge, especially in developing countries, where curriculum is still evolving slowly, and students are often kept as passive recipients of formal knowledge. Students rarely experience other activities that may stimulate them to think in entrepreneurial terms, staying unprepared for commercial career and entrepreneurial endeavors.
Aiming to explore students’ potentials for the entrepreneurial and innovative activities, a survey was conducted in three Western Balkan Countries, with sample of over 1700 students reached. The results show significant entrepreneurial potential that still lays untapped, which advocates for some sort of stimulation from a relevant context such as university.
A network of co-creative centers (iDEA labs) in WBC countries is proposed in this chapter, which aims to generate greater orientation of young people towards self-employment and entrepreneurship by creating a system of continuous support, training, and mentoring for (potential) young entrepreneurs.
Petar Vrgović, Danijela Ćirić, Vladimir Todorović
Ethical Behavior in the Context of Managerial Decision Making and Satisfaction of Employees: Lessons from the Experience of the Post-Transition Country
Abstract
Ethics as a term in the transition and post-transition countries is quite often the subject of various researches. The main reason for this is the fact that ethics is one of the key factors for company’s long-term success and that it is almost neglected when certain business decisions are made. In the business environment, decisions must be taken quickly, under time pressure that does not leave much space for rational judgment. Competition, public, superiors, employees, state organs, and private life are such concepts that should be taken into account when a certain business decision is made. Thus, it is very hard for one to think ethically when making decisions in such a complex environment and under such a huge pressure. In today’s modern world, this is extremely demanding, especially for ourselves in our own decision making, for the company we work for, and ultimately for the society as a whole. It is quite clear that decision making is not an easy process for managers.
In addition to the ethical behavior of managers in business decision making, the subject of this work also includes the satisfaction of employees. Ethical decisions made by managers, directly and indirectly, affect employee satisfaction. Employees are those who participate in the realization of numerous decisions made by managers. Both the business success and the future of the company depend on the stated realization. Managers should be aware of their own impact on employees and determine the criteria that make employees satisfied in order to achieve mutual benefit.
Measuring the level of ethics in a company is not possible because it is something intangible, but this chapter will show components and guidelines that can help managers to be more ethical in business decision making. The aim of this chapter is to encourage and raise awareness of the importance of ethical behavior in decision making in every business situation, without exception. Managers can learn how to make an ethical decision using the same learning tools for improving decision making daily. With the use of certain learning tools and ethical principles, managers are able to make decisions that are consistent with socially responsible behavior reflecting positively on the employee satisfaction and the business success eventually.
Ivana Bulog, Dženan Kulović, Ivan Grančić
Metadaten
Titel
Entrepreneurship in Post-Communist Countries
herausgegeben von
Prof. Jovo Ateljević
Dr. Jelena Budak
Copyright-Jahr
2018
Electronic ISBN
978-3-319-75907-4
Print ISBN
978-3-319-75906-7
DOI
https://doi.org/10.1007/978-3-319-75907-4