Klapper, Leora F.Demirgüç-Kunt, AsliPanos, Georgios A.2012-03-192012-03-192009-05-01https://hdl.handle.net/10986/4129The authors examine the factors affecting the transition to self-employment in Bosnia and Herzegovina, using the World Bank Living Standard Measurement Survey panel household survey for the years 2001-2004. In the beginning of the sample, the country changed its legal framework, with the primary aim to promote labor market flexibility and to encourage entrepreneurial activity. The analysis identifies individuals that switched to self-employment (employers and own account) during the sample period and the viability of this transition, in terms of business survival for more than one year. The results suggest an important role for financing constraints. Specifically, wealthier households are more likely to become entrepreneurs and survive in self-employment. After controlling for household wealth, having an existing bank relationship increases the likelihood of starting a business with hired employees and increases the chances of survival for the new entrepreneur. By contrast, overseas - and in some cases domestic - remittances decrease the likelihood of becoming an entrepreneur.CC BY 3.0 IGOACCESS TO FINANCEACCESS TO FORMAL FINANCEACCOUNTINGAGRICULTURAL PRODUCTSBANK FINANCINGBANK LOANBANK LOANSBANKSBEHAVIORAL PATTERNSBIASESBORROWINGBUSINESS SCHOOLBUSINESS SURVIVALCALCULATIONSCAPITAL FINANCECONTRACT ENFORCEMENTCORPORATE FINANCECORRUPTIONCOST OF CREDITCREDIT CONSTRAINTSCREDIT INSTITUTIONSCREDIT MARKETCREDIT MECHANISMSCREDIT RATIONINGCREDIT UNIONDEBTDEDUCTIBLESDEVELOPMENT BANKDISABLEDDISCRIMINATIONDISGUISED UNEMPLOYMENTDIVERSIFICATIONEARNINGSECONOMIC ACTIVITYECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMIC LIBERALIZATIONECONOMIES OF SCALEEMPLOYEEEMPLOYEREMPLOYER CONTRIBUTIONSEMPLOYERSEMPLOYMENT EXPERIENCEEMPLOYMENT HISTORYEMPLOYMENT PATTERNSEMPLOYMENT PERFORMANCEEMPLOYMENT PROTECTION LEGISLATIONEMPLOYMENT STATUSENTREPRENEURENTREPRENEURIAL ACTIVITIESENTREPRENEURIAL ACTIVITYENTREPRENEURIAL DECISIONENTREPRENEURIAL DECISIONSENTREPRENEURIAL VENTUREENTREPRENEURIAL VENTURESENTREPRENEURSENTRY COSTSEXOGENOUS VARIABLESFAMILIESFAMILY MEMBERFAMILY MEMBERSFARMERSFEMALE EMPLOYMENTFINANCIAL ASSISTANCEFINANCIAL CAPITALFINANCIAL CIRCUMSTANCESFINANCIAL CONSTRAINTSFINANCIAL ECONOMISTFINANCIAL ENVIRONMENTFINANCIAL EXCLUSIONFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL MARKETFINANCIAL MEANSFINANCIAL SECTORFIRM GROWTHFIRM SIZEFIRM SURVIVALFOREIGN INVESTMENTFORMAL EDUCATIONFORMAL SECTOR WAGESGENDERHEALTH CONTRIBUTIONSHEALTH INSURANCEHOUSEHOLD CHARACTERISTICSHOUSEHOLD CONSUMPTIONHOUSEHOLD SAVINGSHOUSEHOLD SURVEYHOUSEHOLD SURVEYSHOUSEHOLD WEALTHHOUSEHOLDSHUMAN CAPITALHUMAN RESOURCESINCOMEINDUSTRIAL RELATIONSINFORMAL CREDITINFORMAL ECONOMYINFORMAL EMPLOYMENTINFORMAL FINANCIAL INSTITUTIONSINFORMAL FINANCINGINFORMAL LOANSINFORMAL SECTORINFORMAL SECTOR WORKERSINTERNAL FINANCEINTERNATIONAL BANKINTERNATIONAL MIGRATIONINVOLUNTARY UNEMPLOYMENTJOB CREATIONJOB SECURITYJOBSLABOR FORCELABOR FORCE POPULATIONLABOR MARKETLABOR MARKET CHARACTERISTICSLABOR MARKET EXPERIENCELABOR MARKET SEGMENTATIONLABOR MARKETSLABOR MOBILITYLABOR REGULATIONLABOR REGULATIONSLABOR SUPPLYLABOR UNIONSLABOURLABOUR MARKETLABOUR MARKET EXPERIENCELABOUR MARKETSLIMITED ACCESSLIVING STANDARDLIVING STANDARDSLOANLOCAL BUSINESSLOCAL BUSINESSESMANUFACTURING INDUSTRIESMARKET CONDITIONSMEDIUM ENTERPRISEMEDIUM ENTERPRISESMICRO-CREDITMICRO-CREDIT SCHEMEMICRO-CREDIT SCHEMESMICRO-ENTERPRISEMICRO-LOANMICROCREDITMICROFINANCEMICROFINANCE INSTITUTIONMICROFINANCE INSTITUTIONSMINIMUM WAGEMORAL HAZARDNEW BUSINESSNEW ENTREPRENEURNEW ENTREPRENEURSNEW JOBSOCCUPATIONPENSIONPENSION CONTRIBUTIONSPERSISTENT UNEMPLOYMENTPERSONAL ASSETSPERSONAL WEALTHPOVERTY ALLEVIATIONPRESENT EVIDENCEPRIMARY SCHOOLPRIMARY SCHOOL EDUCATIONPRIOR LABOR MARKET STATUSPRIVATE SECTORPRIVATIZATIONPROBABILITYPROBIT EQUATIONSPROBIT REGRESSIONSPRODUCTIVITYPROFITABILITYPROPERTY OWNERSHIPPSYCHOLOGICAL TRAITSPUBLIC GOODPUBLIC GOODSPUBLIC POLICYQUESTIONNAIREREGRESSION ANALYSISREMITTANCEREMITTANCESREPAYMENTSAFETY NETSALESAVINGSSELF-EMPLOYMENTSELF-EMPLOYMENT EARNINGSSELF-FINANCINGSENIORSHADOW ECONOMYSMALL BUSINESSSMALL BUSINESSESSOCIAL CAPITALSOCIAL INSURANCESOCIAL SERVICESSOCIAL WELFARESOURCES OF FINANCESTART-UPSTART-UPSSURVIVAL EQUATIONSURVIVAL RATESTERMS OF LOANSTOTAL EMPLOYMENTTYPES OF LOANSUNEMPLOYEDUNEMPLOYED INDIVIDUALUNEMPLOYMENTUNEMPLOYMENT RATEUNEMPLOYMENT STATISTICSUNFAIR COMPETITIONUNIONSURBAN AREAURBAN AREASVALUABLEWORKERWORKERSWORKING AGEWORKING CAPITALWORTHWorld Bank10.1596/1813-9450-4935