Purpose: The study aims to empirically investigate characteristics of regional distribution of inclusive entrepreneurship in Europe through the selected less represented segments (seniors, women, youth) and to identify how entrepreneurial environment factors, macroeconomic indicators and individual entrepreneurial characteristics influence the extent to which the underrepresented groups are engaged in entrepreneurship.
Design/methodology/approach: The study is based on Global entrepreneurship monitor (GEM) data (both APS – adult population survey and NES - national expert survey data) and the GDP per capita in PPS. A pooled sample of individual-level APS GEM data of 30 European countries for the period of 2011 to 2016 was used. The sample is weighted to be representative for gender, age and regional distribution. K-Means clustering using Hartigan and Wong algorithm was applied to divide countries into clusters based on constructed inclusivity indices of seniors, women and youth. We further analysed each of them according to selected economic and entrepreneurial environment factors and individual entrepreneurial characteristics.
Findings: We have identified four clusters among the studied European countries. Based on their analysis in the context of economic and entrepreneurial environment, and individual entrepreneurial characteristics, we found that opportunity perception increases with a higher level of the studied environment. A better environment in combination with individual entrepreneurial characteristics, encourage especially seniors to start their businesses, while youth under these circumstances, prefer to use employment opportunities. However, youth are more involved in entrepreneurship under weak economic and entrepreneurial conditions. Women do not seem to be significantly influenced neither by economic and entrepreneurial environment nor individual entrepreneurial characteristics. As far as regional aspects, two out of four clusters are either created by western countries or former socialist countries and two of them are mixed by both types.
Research/practical implications: Our findings have shown relevant information for policy makers in the area of inclusive entrepreneurship. Particularly, our observations have added value as far as policies formulation, to improve the environment, and formulate strategies on inclusive entrepreneurship and employment policy, which depend on the regional development stage and the level of entrepreneurial involvement of the selected underrepresented groups of population. Our observations also create a basis for further research in the field of inclusive entrepreneurship from regional and environmental points of view. We encourage scholars to study inclusive entrepreneurship further in the context of socioeconomic and cultural variables.
Originality/value: We believe that our paper offers an original value by providing a unique insight on inclusivity of entrepreneurial activities in Europe, by breaking down the GEM-based analysis of female, youth and senior entrepreneurship to regional levels. To our knowledge, there is no previous analysis built on unique, representative and robust data from these European countries.