Entrepreneurs, expectations and business expansion: Lessons from Lithuania

Ruta Aidis and Tomasz Mickiewicz

Europe-Asia Studies, 2006, vol. 58, issue 6, 855-880

Abstract: This article applies a multinomial logit estimator to investigate which factors affect SME owners' expectations to grow their businesses in Lithuania. Our findings provide evidence that SME owners' human capital (education) matters and that growth expectations are positively related to exporting. In addition, we analyse the link between the perceptions of business constraints and growth expectations and find that the factors, which are perceived as main business barriers, are not necessarily those which are associated with reduced growth expectations. However, perceptions of corruption seem to affect growth expectations the most.

Date: 2006
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DOI: 10.1080/09668130600830961

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