Are Young and Small Firms Hothouses for Nascent Entrepreneurs? Evidence from German Micro Data

Joachim Wagner ()

No 989, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Using a large recent representative sample of the German population this paper contributes to the entrepreneurship literature by empirically testing the hypothesis that young and small firms are hothouses for nascent entrepreneurs. The empirical estimation takes the rare events nature of becoming a nascent entrepreneur and the regional stratification of the sample into account. Controlling for various individual characteristics and attitudes (sex, age, risk aversion, presence of a role model in the family, and the width of professional background) we illustrate both the statistical significance and the economic importance for entrepreneurship of work experience in a firm that is both young and small.

Keywords: entrepreneurship; young and small firms; rare events logit; Germany (search for similar items in EconPapers)
JEL-codes: J23 R12 (search for similar items in EconPapers)
Pages: 16 pages
Date: 2004-01
New Economics Papers: this item is included in nep-ent, nep-geo and nep-ino
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (78)

Published - published in: Applied Economics Quarterly, 2004, 50 (4), 379-391

Downloads: (external link)
https://docs.iza.org/dp989.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:dp989

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 ().