Necessity and Opportunity Entrepreneurs in Germany: Characteristics and Earning s Differentials
In this paper we discuss necessity and opportunity entrepreneurship. We use panel data to analyze how these two types of entrepreneurs differ in general, and in their ability to discover and exploit entrepreneurial opportunities. We find that the opportunities exploited by opportunity entrepreneurs are generally more profitable than are those exploited by necessity entrepreneurs. We also find that the determinants of success differ to a strong degree. Standard wage equations seem to work better for opportunity than for necessity entrepreneurs. Our findings indicate a need to distinguish between the two groups in entrepreneurship theory and practice.
Volume (Year): 62 (2010)
Issue (Month): 2 (April)
|Contact details of provider:|| Postal: Geschwister-Scholl-Platz 1, 80539 Muenchen|
Phone: 0049 89 2180 2166
Fax: 0049 89 2180 6327
Web page: http://www.sbr-online.com
More information through EDIRC
References listed on IDEAS
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.:
- Matthias Benz & Bruno S. Frey, 2008.
"Being Independent is a Great Thing: Subjective Evaluations of Self-Employment and Hierarchy,"
London School of Economics and Political Science, vol. 75(298), pages 362-383, 05.
- Bruno S. Frey & Matthias Benz, . "Being Independent is a Great Thing: Subjective Evaluations of Self-Employment and Hierarchy," IEW - Working Papers 135, Institute for Empirical Research in Economics - University of Zurich.
- Bruno S. Frey & Matthias Benz, 2003. "Being Independent is a Great Thing: Subjective Evaluations of Self-Employment and Hierarchy," CESifo Working Paper Series 959, CESifo Group Munich.
- Barton H. Hamilton, 2000. "Does Entrepreneurship Pay? An Empirical Analysis of the Returns to Self-Employment," Journal of Political Economy, University of Chicago Press, vol. 108(3), pages 604-631, June.
- Parker,Simon C., 2004.
"The Economics of Self-Employment and Entrepreneurship,"
Cambridge University Press, number 9780521828130, November.
- Parker,Simon C., 2006. "The Economics of Self-Employment and Entrepreneurship," Cambridge Books, Cambridge University Press, number 9780521030632, November.
- Strauch, Rolf & von Hagen, Jürgen, 2000.
"East Germany: Transition With Unification - Experiments and Experiences,"
CEPR Discussion Papers
2386, C.E.P.R. Discussion Papers.
- von Hagen, Jürgen & Strauch, Rolf R. & Wolff, Guntram B., 2002. "East Germany: Transition with Unification ; Experiments and Experiences," ZEI Working Papers B 19-2002, University of Bonn, ZEI - Center for European Integration Studies.
- Zoltan J. Acs & Attila Varga, 2004.
"Entrepreneurship, Agglomeration and Technological Change,"
Papers on Entrepreneurship, Growth and Public Policy
2004-06, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
- Zoltán Ács & Attila Varga, 2005. "Entrepreneurship, Agglomeration and Technological Change," Small Business Economics, Springer, vol. 24(3), pages 323-334, 02.
- van der Sluis, Justin & van Praag, Mirjam C. & van Witteloostuijn, Arjen, 2007. "Why Are the Returns to Education Higher for Entrepreneurs than for Employees?," IZA Discussion Papers 3058, Institute for the Study of Labor (IZA).
- Reize, Frank, 2000. "Leaving unemployment for self-employment: a discrete duration analysis of determinants and stability of self-employment among former unemployed," ZEW Discussion Papers 00-26, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Pfeiffer, Friedhelm & Reize, Frank, 1998.
"Business Start-ups by the Unemployed - an Econometric Analysis Based on Firm Data,"
ZEW Discussion Papers
98-38, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Pfeiffer, Friedhelm & Reize, Frank, 2000. "Business start-ups by the unemployed -- an econometric analysis based on firm data," Labour Economics, Elsevier, vol. 7(5), pages 629-663, September.
- Devine, T.J. & Kiefer, N.M., 1990.
"The Empirical Status Of Job Search Theory,"
4-90-1, Pennsylvania State - Department of Economics.
- Brown, Sarah & Sessions, John G, 1998. "Education, Employment Status and Earnings: A Comparative Test of the Strong Screening Hypothesis," Scottish Journal of Political Economy, Scottish Economic Society, vol. 45(5), pages 586-91, November.
- Justin van der Sluis & Mirjam van Praag & Wim Vijverberg, 2003. "Entrepreneurship Selection and Performance," Tinbergen Institute Discussion Papers 03-046/3, Tinbergen Institute, revised 24 Sep 2004.
- Evans, David S & Leighton, Linda S, 1989. "Some Empirical Aspects of Entrepreneurship," American Economic Review, American Economic Association, vol. 79(3), pages 519-35, June.
- Joachim Wagner, 2005. "Nascent Necessity and Opportunity Entrepreneurs in Germany. Evidence from the Regional Entrepreneurship Monitor (REM)," Labor and Demography 0506004, EconWPA.
- repec:iza:izadps:dp624 is not listed on IDEAS
When requesting a correction, please mention this item's handle: RePEc:sbr:abstra:v:62:y:2010:i:2:p:154-174. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (sbr)The email address of this maintainer does not seem to be valid anymore. Please ask sbr to update the entry or send us the correct email address
If references are entirely missing, you can add them using this form.