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This paper aims to analyse the determinants of business start-ups and their impact on entrepreneurial performance. The theoretical part indicates that the importance of small- and medium-sized enterprises (SMEs) considers the role of entrepreneur in the business process and provides an overview of theoretical and empirical findings in the main determinants of business start-ups.

The empirical part is based on quantitative survey results from a model of business start-up factors and relations with the entrepreneurs' performance. The data were analysed using the statistical package for data analysis SPSS for Windows. The factor analysis was performed separately for the set of variables that have measured the reasons for founding the start-up, the personality traits, environmental factors and performance. The paper used a multiple linear regression model to identify the strength, direction and impact of different factors on the start-up performance.

In general, the study identifies which indicators influence entrepreneurs' performance (personal and business) in the first years of their companies. The paper revealed the heterogeneity of the measures for performance and their different natures (from financial indicators to those related to the entrepreneur satisfaction). Consequently, one of the most significant findings of the research is that, in spite of the fact that the most commonly used indicators for the firm performance in the literature are financial, the paper should not neglect the so-called perceived performance. This is how entrepreneurs are satisfied with their success.

The study is limited to Slovenian SMEs, but can be generalised to other regions. The study offers notable contributions for research and practice (improvements in SME environmental factors).

The personal traits and appropriate business environments can have beneficial effects on the entrepreneur's perceived performance. The findings can be used to guide the government in efficient management of different dimensions of entrepreneur environment.

This study proved the existence of latent elements of the entrepreneur's perceived performance. It gives valuable information, which hopefully will help the policy makers and entrepreneurs to give greater respect to the meaning of critical personal and environmental factors.