Entrepreneurship in a transition economy: The impact of environment on entrepreneurial orientation
- M. Alexandrova (2004). Problems and Perspectives in Management, 140-148
- Abstract: The paper intends to shed some light on the impact of business environment on entrepreneurial orientation in a transition economy. It presents the basic results of an empirical survey of some business environment factors of entrepreneurial orientation development on the basis of individual evaluations. The survey data was collected by interviews with Bulgarian micro-firms entrepreneurs. Entrepreneurial orientation was operationalized by five involved characteristics-risk taking, pro-activeness, innovativeness, autonomy and aggressive competitiveness. A specifically designed questionnaire asked respondents to rate their perception about each environmental characteristic considered as inherent to Bulgarian transition economy-hostility, dynamism and uncertainty. The hypotheses outlined in the study were tested by using canonical correlation model. Entrepreneurial orientation is increasingly being shaped by environmental forces especially in a transition economy hence the study emphasizes the interrelation between environmental attributes and entrepreneurial orientation of Bulgarian micro-entrepreneurs. In this respect, the uncertainty induced by external environment is in the focus of the study as well as its main characteristics perceived by entrepreneurs. As a result it is concluded that SMEs development policy formulation should target the improvement of business environment and the provision of much more predictable and stimulating conditions for the small businesses during continuing market transition.
- Theme: Business environment
- Keywords: Business environment, Entrepreneurial orientation, Transition economy
- Reference type: Journal Article
- Geographic location: Bulgaria, Europe, Global North