Linking firm characteristics to perceived important social factors for entrepreneurial activity

This study seeks to investigate the linkages between firm characteristics (firm age and size) and perceived important social factors for entrepreneurship. The research is administered on a firm-level data collection through a survey. The paper uses principal component analysis and non-parametric methods, including a post-hoc test to examine the above linkages within an original dataset of 641 small and medium-sized enterprises (SMEs) operating in Czech Republic and Slovakia. The results reveal that the perceived important social factors have a negative association with firm age and a positive one with firm size. Therefore, younger firms are more vulnerable to these factors as compared with their older counterparts. However, larger firms demonstrated perceived higher social factors, as compared with smaller ones. This research contributes to enriching literature by providing insights on the associations of firm characteristics and social factors for entrepreneurship in Central European context.