Original scientific paper
https://doi.org/10.32728/ric.2024.101/4
Financing start-up entrepreneurs and established ventures – evidence from post-socialistic countries
Teodora Šutaković
; University of Ljubljana School of Economics and Business
*
* Corresponding author.
Abstract
Purpose. Our research includes start-ups and established ventures from developing and developed countries. We examine the main financial barriers entrepreneurs face and the main financial sources they use. Further, we investigate if financial barriers and access to financial sources are related to the demographic characteristics of entrepreneurs. Our aim is to give an empirical contribution to the research of entrepreneurship in the economies of Serbia and Slovenia as there is no recent empirical research available. We also tend to give a theoretical contribution to the theories of financing entrepreneurship.
Design/Methodology/Approach. We use survey data from 631 entrepreneurs from Serbia and Slovenia. Data was collected in 2021. Quantitative methods that are used in the research include descriptive statistics, t-test and ANOVA, and correlation.
Findings and implications. Our main findings show that the financing of entrepreneurs in examined countries is not in accordance with the Pecking order theory. Our results show that the main issues for entrepreneurs in examined countries are insignificant Government support, complex bureaucratic procedures, and strict tax regulations. As the main financial obstacle, entrepreneurs see insufficient Government support. Finally, we conclude that the relationship between demographic characteristics of entrepreneurs and their access to capital is not strong; the Upper Echelons theory is not confirmed in this case. However, the Upper Echelons theory is partially confirmed in terms of the relationship between demographic factors of gender, education, and size and entrepreneurs' perceptions of financial barriers. The main recommendation is addressed to Government bodies; as in both countries, inefficient Government support is seen as the main issue and financial obstacle for entrepreneurs.
Limitations. Our research is based on a small sample and data from only two countries. Empirical recommendations for future research refer to investigating more countries of different developing levels and using a larger sample. In terms of the demographic characteristics of entrepreneurs and their influence on financial sources, future researchers may investigate a larger variety of demographic characteristics and how they influence entrepreneur’s financial decisions in different conditions.
Originality. The research is focused on entrepreneurial activities in two countries of different development levels. There is scarce research on entrepreneurial barriers and finance access for entrepreneurs in this context, leading to a huge literature gap. Theoretical contribution lies in the testing of specific theories of entrepreneurial finance in the specific context of developing and developed countries, which are both post-socialistic economies.
Keywords
financial barriers; access to financial sources; entrepreneurship; post-socialistic economies
Hrčak ID:
322195
URI
Publication date:
22.10.2024.
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