Key business restart drivers in Slovakia

Abstract

The phenomenon of business restart, also referred to as second chance, proved to be an integral part of entrepreneurial dynamics. Considering the high level of individual entrepreneurial activity (14.2% in 2011, 10.2% in 2012) accompanied with high discontinuance rate in Slovakia (7.0% in 2011, 4.7% in 2012)1, it is important to further investigate key factors which influence business restart in our country. These findings could unveil what helps to preserve the current entrepreneurial activity, which is besides producing more new entrepreneurs another option to secure self-employment and job creation through individual business activities, with positive impact on economic growth in the country.The main aim of our paper is to analyze the issue of business restart in Slovakia through dynamics measured on individual level and to identify the key drivers of restart activity. These findings represent a good information basis for policy makers helping them better understand the characteristics of business restart phenomenon and develop relevant entrepreneurship policies, as well as for further entrepreneurship research.Our research is primarily based on Slovak Global entrepreneurship Monitor (GEM) 2011 and 2012 individual level data. We applied binominal logistic regression to analyze relationships between business restart and its potential drivers.

Keywords

• business restart
• drivers
• Global Entrepreneurship Monitor (GEM)