Chapter 2: Entrepreneurship in Transition Economies: Necessity or Opportunity Driven?
This paper investigates the meaning and appropriateness of concepts of necessity and opportunity driven entrepreneurship in early stage transition economies, where market reform has been slow and institutional deficiencies make the environment for productive entrepreneurship difficult. Using a combination of survey and case study evidence, the authors show the limitations of extracting such terms from their social context, with implications for the assessment of the entrepreneurial capacity of these countries. Moreover, it is argued that such concepts pay insufficient attention to dynamic influences, such as the learning capacity of individuals, particularly in contexts where entrepreneurs typically possess considerable human capital.
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