Characteristics of nascent entrepreneurs in Germany

Francisco Liñán Alcalde, Domingo Martín Martín () and Rosario González Rodríguez ()

ERSA conference papers from European Regional Science Association

Abstract: Currently, the rate of creation of new enterprises -or start-ups- is considered as one of the maximum exponents of competitiveness within the different economies. The interest regarding the appearance of new enterprises has made numerous governments in the continent implement a series of support measures in that direction. It is expected that the European productive fabric can be revitalized in this way, and therefore to be able to compete with the present superiority of the United States, specially in the field of the so-called 'new economy'. However, very little is still known with respect to the specific characteristics of the individuals who create those enterprises. The knowledge about the figure of the entrepreneur could allow a greater effectiveness of the measures already in operation, as well as of others that may be implemented. In this work we seek to contribute to a better knowledge of the European entrepreneur through an analysis of the characteristics of nascent entrepreneurs in Germany, a major Central European country. Given that Germany is the most important economy in the continent, and taking into account the narrow cultural interrelations with the neighbouring countries, we understand that this study can be representative of that area in Europe. For this study we will be using data from the Panel Comparability (PACO) Project, which includes a longitudinal panel of German households. The Panel data provide information on economic variables and both personal and family characteristics that may influence the decision of creating a new enterprise. It allows us to analyze the features presented by the prospective entrepreneurs before the creation of their enterprises. Thus, we can approach to the ideal situation of studying which are the factors that cause the decision of settling down as an entrepreneur.

Date: 2002-08
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