Arbeitspapier
The economic contribution of start-up firms in Germany
This paper utilizes German tax data to present evidence about the direct and indirect effects of new firm formation. Cohort analysis is applied to investigate survival, sales, inputs, and value added of start-up firms. Most drop-outs occur in the early years. We show that start-up microenterprises increase economic vitality directly. Turnover and value added are in an approximate proportion of 3:1. With respect to the indirect effects of new firms, we find that one Euro of sales induce considerable indirect effects because 66 Cents are used to buy products and services from incumbents. For this reason, new firms substantially promote economic prosperity of incumbents. Sectoral differences are also indicated, with the manufacturing industry generating highest sales and relying on most inputs in the early periods.
- Language
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Englisch
- Bibliographic citation
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Series: Working Paper ; No. 02/14
- Classification
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Wirtschaft
Entrepreneurship
Firm Objectives, Organization, and Behavior: Other
- Subject
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entrepreneurship
direct effects
indirect effects
sales
- Event
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Geistige Schöpfung
- (who)
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Schneck, Stefan
May-Strobl, Eva
- Event
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Veröffentlichung
- (who)
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Institut für Mittelstandsforschung (IfM) Bonn
- (where)
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Bonn
- (when)
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2014
- Handle
- Last update
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10.03.2025, 11:42 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Schneck, Stefan
- May-Strobl, Eva
- Institut für Mittelstandsforschung (IfM) Bonn
Time of origin
- 2014
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