Entrepreneurship in the Transition Economies of Central and Eastern Europe

Authored by: Saul Estrin , Tomasz Mickiewicz

Handbook of the Economics and Political Economy of Transition

Print publication date:  April  2013
Online publication date:  May  2013

Print ISBN: 9780415591126
eBook ISBN: 9780203067901
Adobe ISBN: 9781135080877


 Download Chapter



The willingness of business people to take risks in the formation of new firms is rightly regarded as one of the principal characteristics of a market economy. As risk-takers, entrepreneurs drive innovation and introduce new products and technologies. Moreover, the processes of entry of new firms by entrepreneurs, which reallocate resources from low- to high-productivity uses, is pivotal to achieving efficiency, while the pressures of potential entry push existing firms to minimize their costs and prevent waste. Entrepreneurship is therefore seen as an indicator of national economic health, especially with respect to the ability to grow and to create jobs. Recently, better availability of data on entrepreneurial entry has enabled researchers to test hypotheses on the impact of economic growth on entrepreneurship and to find evidence supporting a positive relationship (Parker, 2009).

Search for more...
Back to top

Use of cookies on this website

We are using cookies to provide statistics that help us give you the best experience of our site. You can find out more in our Privacy Policy. By continuing to use the site you are agreeing to our use of cookies.