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 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.

Bibliographic Details

Main Authors:	Demirgüç-Kunt, Asli, Klapper, Leora F., Panos, Georgios A.
Format:	Policy Research Working Paper biblioteca
Language:	English
Published:	2009-05-01
Subjects:	ACCESS TO FINANCE, ACCESS TO FORMAL FINANCE, ACCOUNTING, AGRICULTURAL PRODUCTS, BANK FINANCING, BANK LOAN, BANK LOANS, BANKS, BEHAVIORAL PATTERNS, BIASES, BORROWING, BUSINESS SCHOOL, BUSINESS SURVIVAL, CALCULATIONS, CAPITAL FINANCE, CONTRACT ENFORCEMENT, CORPORATE FINANCE, CORRUPTION, COST OF CREDIT, CREDIT CONSTRAINTS, CREDIT INSTITUTIONS, CREDIT MARKET, CREDIT MECHANISMS, CREDIT RATIONING, CREDIT UNION, DEBT, DEDUCTIBLES, DEVELOPMENT BANK, DISABLED, DISCRIMINATION, DISGUISED UNEMPLOYMENT, DIVERSIFICATION, EARNINGS, ECONOMIC ACTIVITY, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, ECONOMIC LIBERALIZATION, ECONOMIES OF SCALE, EMPLOYEE, EMPLOYER, EMPLOYER CONTRIBUTIONS, EMPLOYERS, EMPLOYMENT EXPERIENCE, EMPLOYMENT HISTORY, EMPLOYMENT PATTERNS, EMPLOYMENT PERFORMANCE, EMPLOYMENT PROTECTION LEGISLATION, EMPLOYMENT STATUS, ENTREPRENEUR, ENTREPRENEURIAL ACTIVITIES, ENTREPRENEURIAL ACTIVITY, ENTREPRENEURIAL DECISION, ENTREPRENEURIAL DECISIONS, ENTREPRENEURIAL VENTURE, ENTREPRENEURIAL VENTURES, ENTREPRENEURS, ENTRY COSTS, EXOGENOUS VARIABLES, FAMILIES, FAMILY MEMBER, FAMILY MEMBERS, FARMERS, FEMALE EMPLOYMENT, FINANCIAL ASSISTANCE, FINANCIAL CAPITAL, FINANCIAL CIRCUMSTANCES, FINANCIAL CONSTRAINTS, FINANCIAL ECONOMIST, FINANCIAL ENVIRONMENT, FINANCIAL EXCLUSION, FINANCIAL INSTITUTION, FINANCIAL INSTITUTIONS, FINANCIAL MARKET, FINANCIAL MEANS, FINANCIAL SECTOR, FIRM GROWTH, FIRM SIZE, FIRM SURVIVAL, FOREIGN INVESTMENT, FORMAL EDUCATION, FORMAL SECTOR WAGES, GENDER, HEALTH CONTRIBUTIONS, HEALTH INSURANCE, HOUSEHOLD CHARACTERISTICS, HOUSEHOLD CONSUMPTION, HOUSEHOLD SAVINGS, HOUSEHOLD SURVEY, HOUSEHOLD SURVEYS, HOUSEHOLD WEALTH, HOUSEHOLDS, HUMAN CAPITAL, HUMAN RESOURCES, INCOME, INDUSTRIAL RELATIONS, INFORMAL CREDIT, INFORMAL ECONOMY, INFORMAL EMPLOYMENT, INFORMAL FINANCIAL INSTITUTIONS, INFORMAL FINANCING, INFORMAL LOANS, INFORMAL SECTOR, INFORMAL SECTOR WORKERS, INTERNAL FINANCE, INTERNATIONAL BANK, INTERNATIONAL MIGRATION, INVOLUNTARY UNEMPLOYMENT, JOB CREATION, JOB SECURITY, JOBS, LABOR FORCE, LABOR FORCE POPULATION, LABOR MARKET, LABOR MARKET CHARACTERISTICS, LABOR MARKET EXPERIENCE, LABOR MARKET SEGMENTATION, LABOR MARKETS, LABOR MOBILITY, LABOR REGULATION, LABOR REGULATIONS, LABOR SUPPLY, LABOR UNIONS, LABOUR, LABOUR MARKET, LABOUR MARKET EXPERIENCE, LABOUR MARKETS, LIMITED ACCESS, LIVING STANDARD, LIVING STANDARDS, LOAN, LOCAL BUSINESS, LOCAL BUSINESSES, MANUFACTURING INDUSTRIES, MARKET CONDITIONS, MEDIUM ENTERPRISE, MEDIUM ENTERPRISES, MICRO-CREDIT, MICRO-CREDIT SCHEME, MICRO-CREDIT SCHEMES, MICRO-ENTERPRISE, MICRO-LOAN, MICROCREDIT, MICROFINANCE, MICROFINANCE INSTITUTION, MICROFINANCE INSTITUTIONS, MINIMUM WAGE, MORAL HAZARD, NEW BUSINESS, NEW ENTREPRENEUR, NEW ENTREPRENEURS, NEW JOBS, OCCUPATION, PENSION, PENSION CONTRIBUTIONS, PERSISTENT UNEMPLOYMENT, PERSONAL ASSETS, PERSONAL WEALTH, POVERTY ALLEVIATION, PRESENT EVIDENCE, PRIMARY SCHOOL, PRIMARY SCHOOL EDUCATION, PRIOR LABOR MARKET STATUS, PRIVATE SECTOR, PRIVATIZATION, PROBABILITY, PROBIT EQUATIONS, PROBIT REGRESSIONS, PRODUCTIVITY, PROFITABILITY, PROPERTY OWNERSHIP, PSYCHOLOGICAL TRAITS, PUBLIC GOOD, PUBLIC GOODS, PUBLIC POLICY, QUESTIONNAIRE, REGRESSION ANALYSIS, REMITTANCE, REMITTANCES, REPAYMENT, SAFETY NET, SALE, SAVINGS, SELF-EMPLOYMENT, SELF-EMPLOYMENT EARNINGS, SELF-FINANCING, SENIOR, SHADOW ECONOMY, SMALL BUSINESS, SMALL BUSINESSES, SOCIAL CAPITAL, SOCIAL INSURANCE, SOCIAL SERVICES, SOCIAL WELFARE, SOURCES OF FINANCE, START-UP, START-UPS, SURVIVAL EQUATION, SURVIVAL RATES, TERMS OF LOANS, TOTAL EMPLOYMENT, TYPES OF LOANS, UNEMPLOYED, UNEMPLOYED INDIVIDUAL, UNEMPLOYMENT, UNEMPLOYMENT RATE, UNEMPLOYMENT STATISTICS, UNFAIR COMPETITION, UNIONS, URBAN AREA, URBAN AREAS, VALUABLE, WORKER, WORKERS, WORKING AGE, WORKING CAPITAL, WORTH,
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
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