This paper investigates
differences between opportunity and necessity entrepreneurs in terms of
socio-demographics, attitudes and perception of obstacles . We use the
2004 Flash Eurobarometer Survey data. Explanatory variables include
gender, age, education level and self-employed parents, risk tolerance,
locus of control, perceptions of four obstacles and country effects. The
obstacle variables include the perception of availibility of financial
support; administrative complexity; of access to information on new
venture creation and an unfavorable economic climate. Using probit
equations we investigate differences in the preference for self-employment
of opportunity and necessity entrepreneurs. A probit equation is estimated
relating the explanatory variables to opportunity versus necessity
entrepreneurship. Moreover, differences in the entrepreneurial engagement
of opportunity and necessity entrepreneurs are investigated on the basis
of a (ordered) multinomial logit model. Findings indicate that opportunity
entrepreneurs have a higher preference for self-employment because of
family encouragement. Also, opportunity entrepreneurs are found to
perceive of administrative complexity and an unfavorable economic climate,
negatively influencing their entrepreneurial involvement, while this is
not the case for necessity entrepreneurs