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Building Winners? An Empirical Evaluation of Public Business Assistance in the Founding Process


  • Sarah Kösters

    () (Friedrich-Schiller-University Jena, Department of Economics, Graduate College "The Economics of Innovative Change")

  • Martin Obschonka

    () (Friedrich-Schiller-University Jena, Department of Developmental Psychology)


This paper investigates economic and subjective effects of public business assistance delivered to nascent entrepreneurs in Germany. Employing cluster analysis, we explore the actual scope and intensity of business assistance used. Then we analyze predictors of take-up and perceived usefulness taking into account the different patterns of utilized assistance. Finally, we assess economic effects by studying subsequent business performance employing propensity score matching. We cannot reveal that business assistance translates into better start-up performance. However, we find that a lack of personal entrepreneurial resources predicts take-up of business assistance in general as well as perceived usefulness of comprehensive business assistance.

Suggested Citation

  • Sarah Kösters & Martin Obschonka, 2010. "Building Winners? An Empirical Evaluation of Public Business Assistance in the Founding Process," Jena Economic Research Papers 2010-025, Friedrich-Schiller-University Jena.
  • Handle: RePEc:jrp:jrpwrp:2010-025

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    Cited by:

    1. Lovgren, Adam & Ross, R. Brent & Peterson, H. Christopher, 2012. "Overcoming Selection Bias in Measuring the Effect of Entrepreneurial Assistance Programs," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124815, Agricultural and Applied Economics Association.
    2. Obschonka, Martin & Silbereisen, Rainer K. & Schmitt-Rodermund, Eva & Stuetzer, Michael, 2010. "Nascent entrepreneurship and the developing individual: Early entrepreneurial competence in adolescence and venture creation success during the career," MPRA Paper 32021, University Library of Munich, Germany, revised 21 Dec 2010.

    More about this item


    entrepreneurship; business assistance; policy evaluation; entrepreneurial resources; big five;

    JEL classification:

    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • H59 - Public Economics - - National Government Expenditures and Related Policies - - - Other

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