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Necessity and Opportunity Entrepreneurs in Germany: Characteristics and Earning s Differentials

Joern Block and Marcus Wagner ()

Schmalenbach Business Review (sbr), 2010, vol. 62, issue 2, 154-174

Abstract: In this paper we discuss necessity and opportunity entrepreneurship. We use panel data to analyze how these two types of entrepreneurs differ in general, and in their ability to discover and exploit entrepreneurial opportunities. We find that the opportunities exploited by opportunity entrepreneurs are generally more profitable than are those exploited by necessity entrepreneurs. We also find that the determinants of success differ to a strong degree. Standard wage equations seem to work better for opportunity than for necessity entrepreneurs. Our findings indicate a need to distinguish between the two groups in entrepreneurship theory and practice.

Keywords: Earnings Equation; Necessity Entrepreneurship; Opportunity Discovery; Opportunity Entrepreneurship; Opportunity Exploitation. (search for similar items in EconPapers)
JEL-codes: C23 J23 J24 J31 M13 (search for similar items in EconPapers)
Date: 2010
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Working Paper: Necessity and Opportunity Entrepreneurs in Germany: Characteristics and Earnings Differentials (2006) Downloads
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Handle: RePEc:sbr:abstra:v:62:y:2010:i:2:p:154-174