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

Joern Block and Philipp Sandner

No 191, SOEPpapers on Multidisciplinary Panel Data Research from DIW Berlin, The German Socio-Economic Panel (SOEP)

Abstract: 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.

Keywords: Self-employment; Firm survival; Necessity entrepreneurs; Opportunity entrepreneurs; Hazard rates; GSOEP (search for similar items in EconPapers)
JEL-codes: C41 J23 J24 M13 (search for similar items in EconPapers)
Pages: 34 p.
Date: 2009
New Economics Papers: this item is included in nep-ent and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (144)

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Related works:
Journal Article: Necessity and Opportunity Entrepreneurs and Their Duration in Self-employment: Evidence from German Micro Data (2009)
Working Paper: Necessity and Opportunity Entrepreneurs and their Duration in Self-employment: Evidence from German Micro Data (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:diw:diwsop:diw_sp191

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