Assessing the entrepreneurial intention in Romania. An approach based on a binomial logistic regression

Entrepreneurship is an increasingly popular activity, spread worldwide. Every year, thousands of individuals choose to start their own business, some of them beginning from college, others after years of experience and activity in other companies, as simple employees. In Romania, entrepreneurial activity is a practice of great interest in society during the last years. But what could be the reasons behind the entrepreneurial intention and decision in Romania? We intend to answer this question using as a starting point the database provided by the Global Entrepreneurship Monitor, from which a series of variables considered relevant in line with other studies on this topic will be selected. We will therefore identify what determines Romanians to choose the path of entrepreneurship, but also to what extent. The methodology applied in this paper is the binomial logistic regression. Using this technique, four regression models will be estimated, based on them concluding which are the explanatory factors of the entrepreneurial intent in Romania. The results will show that in Romania some significant factors to explain the preference for entrepreneurship are individuals’ confidence in their own abilities, fear of failure, knowledge of other entrepreneurs, but also occupational status. These records will prove to be in line with the results obtained at the level of other states. However, it will be shown that unlike other nations and societies, in Romania there are no significant differences regarding the entrepreneurial decision in terms of age or gender.