Factors of Choosing Innovative Entrepreneurial Activity

Entrepreneurship, as a type of small business characterized by a large number of competitors and high risks of insolvency due to limited turnover, always requires a creative approach to the organization of the company's work to ensure the attractiveness of the product to the consumer. However, most entrepreneurs prefer partial or complete copying of the existing business model, which increases confidence in the need for their goods with a known high demand. For this reason, entrepreneurs can be divided into innovative and non-innovative (imitating) ones. In most studies of entrepreneurship factors, the authors analyze the entire entrepreneurship as a whole, without dividing into groups, which may distort conclusions about the influence of some factors on innovative entrepreneurs. The purpose of this work is to assess the influence of individual and aggregated factors on the probability of an individual choosing innovative entrepreneurial activity. To achieve it, the external and internal factors of entrepreneurship are considered. Based on a theoretical review of studies containing the results of the analysis of some aspects of the topic considered in this paper, hypotheses corresponding to the analyzed factors of the choice of innovative entrepreneurship are formulated. The paper examines the relationship between age, gender, higher education, necessary skills, the possibility of starting a business in the next six months in the respondent's region of residence, business experience, acquaintance with entrepreneurs, fear of failure and the choice of innovative entrepreneurship. The model also includes aggregated indicators of the level of income, innovation and cultural characteristics of countries, and an indicator of the quality of government programs. The results obtained confirmed the influence of most of these factors on the choice of innovative entrepreneurship. The influence of knowledge, skills and abilities of business management, acquaintance with entrepreneurs, the indicator of individualism on the choice of innovative entrepreneurial activity has not been revealed.