Influence of insurance on entrepreneurship: sector-specific evidence


  • Vladimir Njegomir Faculty of Business and Legal Studies ’Dr Lazar Vrkatic’, Novi Sad, Serbia
  • Dragan Stojić University of Novi Sad, Faculty of Economics in Subotica, Subotica, Serbia
  • Jelena Demko-Rihter University of Novi Sad, Faculty of Technical Sciences, Novi Sad, Serbia



Entrepreneurship, income, insurance, premium, risk


Background: Numerous authors have researched the impact of insurance on entrepreneurship and focused primarily on different aspects of health and social insurance, and their alternatives to private insurance. This paper investigates the importance of various lines of insurance on entrepreneurial performance.  

Purpose: The aim of the research is to analyse how insurance affects entrepreneurship in certain sectors of activity.

Study design/methodology/approach: A linear regression model was applied on data collected through the questionnaire, which consisted of 12 questions embodying the variables included in the regression analysis. The survey was conducted on a sample of 460 entrepreneurs, which provided a confidence interval of 4.5 at a confidence level of 95%. The questionnaire was submitted to entrepreneurs in person, and it was filled in accountancy agencies that provide them accounting services, thus avoiding initial mistrust of entrepreneurs as respondents.

Findings/conclusions: The main findings included the positive impact of premium paid on business results. By using variance analysis, the existence of sectoral differences regarding the impact of entrepreneurship on insurance was also confirmed. It was found that sectoral differences exist not only in the purchase of insurance, but also in the level of realized income, whereby the highest revenues were realized in the activities of information and communication and accommodation, and food service, while the smallest revenues were realized in the manufacturing industry. These results are also crucial for directing the government's economic policies to stimulate entrepreneurship and economic growth.

Limitations/future research: Future research will be directed toward comparisons of results obtained in a developing country, with the sector specific evidence in developed countries.