Entrepreneurial activity at the early stages in Central and Eastern European countries: Individual characteristics and the gender gap

Abstract

This study examines the factors influencing entrepreneurial activity at the early stages and the contribution of these factors to the gender gap in entrepreneurship in the seven Central and Eastern European countries.Using Global Entrepreneurship Monitor 2017 data, the author estimate logit models for three stages of the entrepreneurial process (potential entrepreneur, nascent entrepreneur, and early-stage entrepreneur) and apply Fairlie's decomposition method for calculating the contributions of variables in the gender gap.The study finds that individual demographic and entrepreneur-ship-related traits are influential determinants of the likelihood of being an entrepreneur at the early stages of business.Additionally, women are less likely to engage in all three stages of entrepreneurial activity in all countries.The decomposition analysis shows that the overall gender gaps range from 2.6 to 6.1 percentage points across the three stages of entrepreneurship.Gender disparities in explanatory variables explain 26.2 percent to 43.4 percent of these gaps.Factors such as startup skills, higher household income, knowing other entrepreneurs, and employ-ment significantly explain both entrepre-neurial activity and the gender gap.Never-theless, the extent of their effect is slightly different in the entrepreneurial phases.Byambasuren

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