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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)

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    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.

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    File URL: http://pubdb.wiwi.uni-jena.de/pdf/wp_2010_025.pdf
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    Paper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2010-025.

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    Date of creation: 08 Apr 2010
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    Handle: RePEc:jrp:jrpwrp:2010-025
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