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

Block, Jörn H. and Sandner, Philipp G. (18. October 2007): Necessity and Opportunity Entrepreneurs and their Duration in Self-employment: Evidence from German Micro Data. Discussion Papers in Business Administration 2007-10

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.

• Item Type: Paper ()
• Keywords: Self-employment; Firm survival; Necessity entrepreneurs; Opportunity entrepre-neurs; Hazard rates; GSOEP
• Subjects: Munich School of Management; Munich School of Management > Discussion Papers; Munich School of Management > Discussion Papers > Entrepreneurship
• Dewey Classification: 300 Social sciences; 300 Social sciences > 330 Wirtschaft
• Journal of Economic Literature classification: J23, J24, M13, C41
• Language: English