Personal, Household and Business Environmental Determinants of Entrepreneurship

This paper explores the personal, household and business environmental determinants of entrepreneurship in Kosova using binary choice model based on the large Riinvest's Labour Force and Household Survey. Research findings suggest that personal characteristics such as gender (male), living in urban areas, belonging to a large household have significant positive impact on entrepreneurship behaviour of population while we find a weak positive effect of age and no significant effect of marital status. Business environmental factors such as services and trade where start-up and sunk costs are expected to be low and rapidly growing sectors such as construction together with regions in which entrepreneurship is more developed have significant positive impact on entrepreneurship. In contrast to previous studies we find that education, family remittances and presence of additional wage earner have negative impact on entrepreneurship