Exploring the Entrepreneurship Environment in Estonia: A Tale of Two Perspectives

The paper examines the differences and similarities between entrepreneurs and non-entrepreneurs in their perceptions of the entrepreneurial environment. Based on data from 1483 Estonian respondents and using various analytical techniques (such as factor analysis, t-test, correlation analysis, and hierarchical cluster analysis), we identified ten business environment factors, of which six were perceived differently by entrepreneurs and non-entrepreneurs. The findings reveal that entrepreneurs perceive the overall business environment and legislation more positively. However, they are more skeptical about the availability of financial resources and perceive public attitudes toward entrepreneurs less positively. It follows that existing entrepreneurial intentions and motivations to start a business could be turned into actual actions and venture creation if public attitudes towards entrepreneurs were more favorable, and policies provided stronger support for entrepreneurship education and financing. Finally, the resulting cluster profiles provide policymakers with valuable insights that might help them to design more targeted policies to encourage entrepreneurial activity.