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Analysis of Push and Pull Factors for Starting a Business in Latvia

Author

Listed:
  • Berke-Berga Anzelika

    (PhD, Assistant Professor, Riga Stradins University, Latvia.)

  • Dovladbekova Inna

    (PhD, Professor, Riga Stradins University, Latvia.)

  • Urbane Marta

    (PhD, Assistant Professor, Riga Stradins University, Latvia.)

Abstract

Entrepreneurship related research has developed rapidly during the recent decades. It is of interest for every country in the European Union to foster increase of newly created enterprises and thus employment and economic dynamism. The main goal of this paper is centred on motivational factors that contribute to people’s involvement in business in Latvia. At first, the article looks at the development of factors that influence entrepreneurial motivation in context of push and pull theoretical framework. Subsequently, the analysis of an empirical study is carried out. The study analyzes factors that promote or hinder starting a business in context of push and pull framework. The results offer important conclusions regarding the main motivators for starting a business. Majority of the existing and potential entrepreneurs are motivated by the pull factors (i.e., appropriate character, skills and knowledge, willingness to support their family members or earn more). The motivation can be further triggered by the push factors, such as tax benefits or favourable business legislation. Nevertheless, the push factors alone cannot boost creation of new enterprises as operate in tandem with the pull factors.

Suggested Citation

  • Berke-Berga Anzelika & Dovladbekova Inna & Urbane Marta, 2021. "Analysis of Push and Pull Factors for Starting a Business in Latvia," European Studies - The Review of European Law, Economics and Politics, Sciendo, vol. 8(1), pages 148-160, December.
    • Handle: RePEc:vrs:eurstu:v:8:y:2021:i:1:p:148-160:n:5
    DOI: 10.2478/eustu-2022-0070
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