Arbeitspapier

Necessity and Opportunity Entrepreneurs and their Duration in Self-employment: Evidence from German Micro Data

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Using data from the German Socio-Economic Panel Study (GSOEP), we analyze whether necessity entrepreneurs differ from opportunity entrepreneurs in terms of self-employment duration. Using univariate statistics, we find that opportunity entrepreneurs remain in self-employment longer than necessity entrepreneurs. However, after controlling for the entrepreneurs’ education in the professional area where they start their venture, this effect is no longer significant. We therefore conclude that the difference observed is not an original effect but rather is due to selection. We then go on to discuss the implications of our findings for entrepreneurship-policy making, and give suggestions to improve governmental start-up programs.

Language: Englisch

Bibliographic citation: Series: Discussion Paper ; No. 2007-10

Classification: Management
Labor Demand
Human Capital; Skills; Occupational Choice; Labor Productivity
New Firms; Startups
Duration Analysis; Optimal Timing Strategies

Subject: Self-employment
Firm survival
Necessity entrepreneurs
Opportunity entrepre-neurs
Hazard rates
GSOEP

Event: Geistige Schöpfung

(who): Block, Jörn H.
Sandner, Philipp G.

Event: Veröffentlichung

(who): Ludwig-Maximilians-Universität München, Fakultät für Betriebswirtschaft

(where): München

(when): 2007

DOI: doi:10.5282/ubm/epub.2082

Handle: http://hdl.handle.net/10419/104484

URN: urn:nbn:de:bvb:19-epub-2082-6

Last update: 10.03.2025, 11:42 AM CET

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Object type

Arbeitspapier

Associated

Block, Jörn H.
Sandner, Philipp G.
Ludwig-Maximilians-Universität München, Fakultät für Betriebswirtschaft

Time of origin

2007

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Necessity and Opportunity Entrepreneurs and Their Duration in Self-employment: Evidence from German Micro Data

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