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On the Role of Entrepreneurial Experience for Start-up Financing: An Empirical Investigation for Germany

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Author Info
Metzger, Georg
Abstract

Entrepreneurs are often faced with problems regarding start-up financing. But compared to novice entrepreneurs, experienced entrepreneurs should have both more knowledge and better contacts, which should potentially reduce the occurrence of problems and affect finance composition. However, experience of business failure might result in additional effects. This analysis therefore investigates the effects of experience on several aspects of start-up financing. It is based on data from the KfW Start-up Monitor, a representative annual survey of the German population. The results show that experience affects several financing issues. Yet the impacts depend on the kind of experience. With regard to previously failed entrepreneurs, who are of particular interest, the findings indicate that they cut back their financing demand and are more likely faced with problems satisfying this demand. However, previously failed entrepreneurs do not significantly differ in the sources they use to finance their businesses. --

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Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 07-047.

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Date of creation: 2007
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Handle: RePEc:zbw:zewdip:5873

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Related research
Keywords: Entrepreneurial experience; restart; start-up financing;

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Find related papers by JEL classification:
L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Capital and Ownership Structure
M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups

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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Michael Schwartz & Christoph Hornych, 2009. "Auf gute Nachbarschaft? Zentreninterne Netzwerkstrukturen und Determinanten von Wissenschaftskooperationen in deutschen Technologie- und Gründerzentren," IWH Discussion Papers 2-09, Halle Institute for Economic Research. [Downloadable!]
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