Central European Business Review 2017, 6(2):42-53 | DOI: 10.18267/j.cebr.179

What is the Relationship between Entrepreneurship and Unemployment in Visegrad Countries?

Ondřej Dvouletý
Ondřej Dvouletý, PhD Researcher, Faculty of Business Administration, Department of Entrepreneurship, University of Economics, Prague, W. Churchill Sq. 4, 130 67, Prague 3, Czech Republic, ondrej.dvoulety@vse.cz

The presented study aims to quantify the determinants of entrepreneurship in the four countries of the Visegrad (V4) group (the Czech Republic, Hungary, Poland and Slovakia) with a particular focus on the relationship between entrepreneurship and unemployment. The purpose of the research was to analyze whether, during the periods of higher unemployment rate, individuals more likely engage into entrepreneurial activity. Data were collected from the national statistical offices of the Visegrad countries, World Bank, Eurostat and Heritage Foundation. The collected sample covered years 1998-2015. To achieve the main objective of the article, regression models with the dependent variable, the rate of registered businesses per economically active inhabitant, were quantified. Estimated regressions proved a positive relationship between entrepreneurship and unemployment. A higher unemployment rate was associated with the increase in overall entrepreneurial activity. Estimated models further confirmed the negative influence of the administrative barriers on the overall entrepreneurial activity. Several policy and research implications are discussed in the study.

Keywords: entrepreneurial activity; registered business activity; unemployment; administrative barriers; Visegrad countries
JEL classification: L26, M1, M2

Received: March 29, 2017; Revised: May 15, 2017; Published: June 30, 2017  Show citation

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Dvouletý, O. (2017). What is the Relationship between Entrepreneurship and Unemployment in Visegrad Countries? Central European Business Review, 6(2), 42-53. doi: 10.18267/j.cebr.179
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