The Spread of the Entrepreneurial Inclination

Abstract

The paper analyses the social determinants of the entre-preneural inclination of the Hungarian population. On the one hand it endeavours to explain what social factors had decisive influence on the entrepreneurial attitudes in 1988 and 1990 and on the other hand it tries to throw light on how these factors were modified between 1988 and 1990. The data show that between 1988 and 1990 the entrepreneurial inclination became markedly stronger; it rose from 25 per cent to 44 per cent. In both years the demographic factors were found to have the closest relations with the entrepreneurial attitude.

In respect of the entrepreneurial inclination there is an increasing tension among the various sections of the intelligentsia because of the conflicting interests. Those whose knowledge can be utilized on the market insist on becoming entrepreneurs in 1990 as well, while the rest, that previously also displayed an interest in the enterprises, abandoned this idea by 1990. The second significant split occurred not between the workers and the employees, but within the working class: while the skilled workers were inclined to start enterprises more often than the average, the semiskilled workers did not reach this level of frequency.

During the analysed period the mechanism of social recruitment was modified in two aspects as well. On the one hand those who were inclined to start enterprises could be characterized less and less by stratum-criteria. In reply to the question whether one would like to become an entrepreneur, the answer stressed — apart from the demographic factors — not so much the occupation and the educational qualification, but rather the capital of relations and the satisfaction with the given work.

On the other hand those whose family background had a lower social status, displayed a decreasing inclination to become enterpreneurs from 1988 to 1990. Owing to this effect the number of those who wished to start enterprises decreased.

The probable connection between the economic effects and the memmchanisms of social recruitment lies in the fact that the crisis increases the number of those who feel compelled to start enterprises and thereby makes the circle of potential entrepreneurs more open. The ensuing changes in the economic policy promote the strengthening of the social capital and also that special capital which is based on having good relations.