Regional and gender differences in self-employment motivation: implications on job sustainability

Abstract

The aim of this study was to determine regional and gender differences in motivators for establishing home-based businesses (HBBs) in a former Communist country, Serbia. It is widely accepted that a divide exists between opportunity-driven and necessity-driven entrepreneurs, with HBBs having a greater chance of survival if they are established for opportunity reasons. The fact that a large proportion of HBB owners in the sample reported opportunity motivators (56.7%) suggests that HBBs have a good chance of success in Serbia. The sample was devised of 310 HBB owners (contacted via a postal survey), stratified by gender, location (urban/rural) and type of residence (city/village). When asked to select their primary motivator, 43.3% of respondents selected the necessity motivator, stating that an HBB was "the only chance of employment". Necessity motivators were more frequently cited in urban areas, compared to rural areas, and 48.9% of women and 35.8% of men started their own business out of necessity. This indicates that there is still a long way to go before gender gaps are closed, as well as that equality must further be promoted in employment and other spheres of public policy (e.g. local economic development). These observations may contribute to establishing home-based business activities as significant contributors to the sustainability of rural communities, as well as to the promotion of awareness and support for self-employment.