Environment-Readiness Entrepreneurship Intention Model: The Case of Estonians and the Russian-Speaking Minority in Estonia

Abstract

The entrepreneurship intention research is mainly focused on individual related features, and the aspects of the external environment are not sufficiently considered. The present article aims to present and empirically test the Environment-Readiness Entrepreneurship Intention (EREI) Model, which consists of the perception of the environment (namely, political, economic socio-cultural) and an evaluation of readiness (motivation, attitudes, competencies) to start up a business by potential entrepreneurs. To test the model, the EREI Questionnaire was developed and tested in Estonia on a sample of Estonians and the Russian-speaking minority population. The results of the analysis indicate that the EREI Model shows the following empirical evidence: a higher satisfaction with the external environment and a higher level of readiness lead to higher entrepreneurship intention. There are also significant differences in how the EREI Model manifests for the majority and minority populations. Based on the results, an ethnic minority entrepreneurship obstruction hypotheses is introduced.