Informal investment in transition economies: Individual characteristics and clusters

Szerb, Laszlo, Rappai, Gabor, Makra, Zsolt, & Terjesen, Siri A. (2007) Informal investment in transition economies: Individual characteristics and clusters. Small Business Economics, 28(2-3), pp. 257-271.

View at publisher


This paper investigates the factors driving informal investment in Croatia, Hungary and Slovenia. Using Global Entrepreneurship Monitor (GEM) data, we find that the low rates of informal investment activity and the small amounts of investments in these countries are driven by entrepreneurial behaviors consistent with limited market economy experience. We extend prior studies by investigating the role of business ownership, and identify significant differences between individuals with and without business ownership experience in terms of having start-up skills, knowing an entrepreneur and fearing failure. Cluster analysis identifies seven distinct groups of informal investors, and reveals the heterogeneity in terms of investors’ age, gender, level of education, amount of investment, start-up skills, ownership status, income, opportunity perception and country of residence.

Impact and interest:

33 citations in Scopus
20 citations in Web of Science®
Search Google Scholar™

Citation counts are sourced monthly from Scopus and Web of Science® citation databases.

These databases contain citations from different subsets of available publications and different time periods and thus the citation count from each is usually different. Some works are not in either database and no count is displayed. Scopus includes citations from articles published in 1996 onwards, and Web of Science® generally from 1980 onwards.

Citations counts from the Google Scholar™ indexing service can be viewed at the linked Google Scholar™ search.

ID Code: 8445
Item Type: Journal Article
Refereed: Yes
Additional Information: For more information, please refer to the journal’s website (see hypertext link) or contact the author.
Author contact details:
Keywords: informal investment, entrepreneurship, Global Entrepreneurship Monitor, CEE, transition economies
DOI: 10.1007/s11187-006-9019-9
ISSN: 1573-0913
Subjects: Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > BUSINESS AND MANAGEMENT (150300)
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Copyright Owner: Copyright 2007 Springer
Deposited On: 04 Jul 2007 00:00
Last Modified: 24 Apr 2015 02:14

Export: EndNote | Dublin Core | BibTeX

Repository Staff Only: item control page