EconPapers    
Economics at your fingertips  
 

Taking a Second Chance: Entrepreneurial Restarters in Germany

Joachim Wagner ()

No 417, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Folklore has it that the comparatively low proportion of self-employed in Germany is in part due to a habit that might be termed 'stigmatisation of failure': taking a second chance to build one's own firm after failing as a self-employed is said to be much more difficult here than in other countries. This paper uses data from a large recent survey in ten German planning regions to document that 18 percent of today’s firm owners founded a firm in the past that went out of business in between, and that 8 percent of people who went out of business with their former firm are actively engaged in starting a new business today. The determinants of such a restart are investigated econometrically. It turns out that both individual and regional factors are important for the probability of taking a second chance: This probability is negatively related to age, attitude towards risk, and the share of persons in the region who failed in the past, while it is positively related to personal contacts with a young entrepreneur and the regional share of nascent entrepreneurs.

Keywords: Germany; Entrepreneurship; restart (search for similar items in EconPapers)
JEL-codes: J23 R12 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ent and nep-pke
Date: 2002-01
References: View complete reference list from CitEc
Citations: Track citations by RSS feed

Published in: Applied Economics Quarterly, 2003, 49 (3), 255-272

Downloads: (external link)
http://ftp.iza.org/dp417.pdf (application/pdf)

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:iza:izadps:dp417

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().

 
Page updated 2020-01-17
Handle: RePEc:iza:izadps:dp417