Abstract
The Latvian Panel Study of Entrepreneurial Dynamics (LV-PSED) is designed to gain an understanding of the factors leading to successful business creation as well as of those factors leading to the failure of the start-up. The focus on the causes of success and failure distinguishes LV-PSED from most other surveys of businesses in Latvia which have focussed on barriers confronted by existing firms. Very little is known about business start-up efforts in Latvia, as well as their outcomes in terms of new firm creation or disengagement.
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- 1.
The Latvian questionnaire is presented in Baltrusaityte-Axelson et al. (2008).
- 2.
Here, it should be mentioned that, because of brief misunderstanding with the survey vendor, 100 nascent entrepreneurs (out of 400) were drawn from the official announcements on registrations of new firms. However, the vendor also properly screened all individuals involved with new registrations, implying that this subsample complied with selection criteria for nascent entrepreneurs. Strictly speaking, therefore, only 300 nascent entrepreneurs from the sample were screened from the total population of all adults, with 100 nascent entrepreneurs screened from the population of individuals registering new firms.
- 3.
In 2006–2008, Latvia went through a period of rapid overheating of its economy, accompanied by high growth of wages. As a result, survey costs nearly doubled by the time we had to conduct the first follow-up interviews. This seriously stretched our initial budget and left little resources for Wave 3.
- 4.
European Foundation for the Improvement of Living and Working Conditions (2009).
- 5.
This is a pattern not only observed in the Latvian PSED but in other Latvian studies as well; Latvian respondents seem to be extremely unwilling to reveal any type of financial information.
- 6.
As mentioned in the methodology section of this chapter, due to a misunderstanding, 100 out of the 400 nascent entrepreneurs were from a sample of already registered firms. Given the high proportion of nascent entrepreneurs who have registered their venture among the other 300 sampled nascent entrepreneurs, it is reasonable to assume that the percentage of nascent entrepreneurs who have registered their venture is still close to 90%.
- 7.
The high number of nascent entrepreneurs who have registered their business suggests that in terms of sampling, a less expensive way to reach out to the nascent entrepreneurs would be to use the Latvian company register. The price to be paid is, however, that around 10% of the nascent entrepreneurs are excluded from the sample.
- 8.
See Shaver et al. (2001) for a discussion of the problem of determining who is to be considered a nascent entrepreneur within the PSED context.
- 9.
Numerous attempts to contact nascent entrepreneurs were made in the August of 2008 and a few months later – in January 2009. In about 40% of cases, there was a wrong number or a different person answering the phone, indicating that nascent entrepreneur moved or left the country. The survey firm also went at great length in trying by calling the neighbors of missing entrepreneurs.
- 10.
Some studies group this variable under “social capital.”
- 11.
This variable is constructed from the question taken from the entrepreneurship survey conducted by Djankov et al. (2005).
- 12.
Also, no studies cited by Davidsson and Gordon find “work experience” to have a significant positive effect.
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Dombrovsky, V., Paalzow, A., Rastrigina, O. (2011). Latvia: Panel Study of Entrepreneurial Dynamics Overview. In: Reynolds, P., Curtin, R. (eds) New Business Creation. International Studies in Entrepreneurship, vol 27. Springer, New York, NY. https://doi.org/10.1007/978-1-4419-7536-2_6
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