EconPapers    
Economics at your fingertips  
 

Start-up activities, individual characteristics, and the regional milieu: Lessons for entrepreneurship support policies from German micro data

Joachim Wagner () and Rolf Sternberg

The Annals of Regional Science, 2004, vol. 38, issue 2, 219-240

Abstract: This paper contributes to empirical research on the role of regional policy for entrepreneurship by focusing on the link between two stylized facts that emerged from a number of studies for Germany and other countries: Entry rates differ between regions, and the propensity to become an entrepreneur is influenced by socio-demographic variables and attitudes. We develop a theoretical framework to discuss this link, and we test whether for a person of a given age, degree of schooling, attitude towards risk etc. regional variables and, therefore, regional policies, do matter for the decision to start a new business ceteris paribus. Our econometric study is based on data for 10.000 persons from a recent representative survey of the population in ten German planning regions, the Regional Entrepreneurship Monitor (REM). We use a version of the probit model that takes care of the regional stratification of the data, and the results of the nonlinear models are carefully interpreted and illustrated. We find that the propensity to step into self-employment is, among others, higher for males, unemployed, people with contacts to a role model, and with past entrepreneurial experience, who live in more densely populated and faster growing regions with higher rates of new firm formation, while risk aversion and high prices of land have the opposite impact. Interestingly, it does not matter whether the region has a “left” or “right” government. However, many implications for entrepreneurship supporting policies in German regions are discussed in the final section. Copyright Springer-Verlag 2004

Date: 2004
References: Add references at CitEc
Citations View citations in EconPapers (58) Track citations by RSS feed

Downloads: (external link)
http://hdl.handle.net/10.1007/s00168-004-0193-x (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:anresc:v:38:y:2004:i:2:p:219-240

Ordering information: This journal article can be ordered from
http://link.springer.com/journal/168

Access Statistics for this article

The Annals of Regional Science is currently edited by Martin Andersson, E. Kim and Janet E. Kohlhase

More articles in The Annals of Regional Science from Springer, Western Regional Science Association Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla ().

 
Page updated 2018-11-07
Handle: RePEc:spr:anresc:v:38:y:2004:i:2:p:219-240