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

  • Jörn Block
  • Philipp Sandner

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.

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File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.98689.de/diw_sp0191.pdf
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Paper provided by DIW Berlin, The German Socio-Economic Panel (SOEP) in its series SOEPpapers on Multidisciplinary Panel Data Research with number 191.

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Length: 34 p.
Date of creation: 2009
Date of revision:
Handle: RePEc:diw:diwsop:diw_sp191
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Web page: http://www.diw.de/en/soep
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  5. Fairlie, Robert, 2014. "Ethnic and Racial Self-Employment Differences and Possible Explanations," Santa Cruz Department of Economics, Working Paper Series qt24p7v6gc, Department of Economics, UC Santa Cruz.
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  29. repec:cup:cbooks:9780521828130 is not listed on IDEAS
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