On the Role of Entrepreneurial Experience for Start-up Financing: An Empirical Investigation for Germany

Georg Metzger

ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

Abstract: Entrepreneurs are often faced with problems regarding start-up financing. But compared to novice entrepreneurs, experienced entrepreneurs should have both more knowledge and better contacts, which should potentially reduce the occurrence of problems and affect finance composition. However, experience of business failure might result in additional effects. This analysis therefore investigates the effects of experience on several aspects of start-up financing. It is based on data from the KfW Start-up Monitor, a representative annual survey of the German population. The results show that experience affects several financing issues. Yet the impacts depend on the kind of experience. With regard to previously failed entrepreneurs, who are of particular interest, the findings indicate that they cut back their financing demand and are more likely faced with problems satisfying this demand. However, previously failed entrepreneurs do not significantly differ in the sources they use to finance their businesses.

Keywords: Entrepreneurial experience; restart; start-up financing (search for similar items in EconPapers)
JEL-codes: G32 L26 M13 (search for similar items in EconPapers)
Date: 2007
New Economics Papers: this item is included in nep-eec, nep-ent and nep-knm
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:zewdip:6650

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