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Nascent and infant entrepreneurs in Germany. Evidence from the Regional Entrepreneurship Monitor (REM)

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  • Joachim Wagner

    (University of Lueneburg)

Abstract

Based on data from a recent representative survey of the adult population in Germany this paper documents that the patterns of variables influencing nascent and infant entrepreneurship are quite similar and broadly in line with our theoretical priors – both types of entrepreneurship are fostered by the width of experience and a role model in the family, and hindered by risk aversion, while being male is a supporting factor. Results of this study using cross section data are in line with conclusions from longitudinal studies for other countries finding that between one in two and one in three nascent entrepreneurs become infant entrepreneurs, and that observed individual characteristics – with the important exception of former experience as an employee in the industry of the new venture - tend to play a minor role only in differentiating who starts and who gives up.

Suggested Citation

  • Joachim Wagner, 2005. "Nascent and infant entrepreneurs in Germany. Evidence from the Regional Entrepreneurship Monitor (REM)," Labor and Demography 0504010, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpla:0504010
    Note: Type of Document - pdf; pages: 30
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    References listed on IDEAS

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    1. Joachim Wagner, 2006. "Are nascent entrepreneurs 'Jacks-of-all-trades'? A test of Lazear's theory of entrepreneurship with German data," Applied Economics, Taylor & Francis Journals, vol. 38(20), pages 2415-2419.
    2. Joachim Wagner, 2005. "Nascent and infant entrepreneurs in Germany. Evidence from the Regional Entrepreneurship Monitor (REM)," Labor and Demography 0504010, University Library of Munich, Germany.
    3. Lückgen, Ingo & Oberschachtsiek, Dirk & Sternberg, Rolf & Wagner, Joachim, 2004. "Nascent Entrepreneurs in German Regions: Evidence from the Regional Entrepreneurship Monitor (REM)," IZA Discussion Papers 1394, Institute of Labor Economics (IZA).
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    6. Wagner, Joachim, 2004. "Nascent Entrepreneurs," IZA Discussion Papers 1293, Institute of Labor Economics (IZA).
    7. Edward P. Lazear, 2004. "Balanced Skills and Entrepreneurship," American Economic Review, American Economic Association, vol. 94(2), pages 208-211, May.
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    9. Kihlstrom, Richard E & Laffont, Jean-Jacques, 1979. "A General Equilibrium Entrepreneurial Theory of Firm Formation Based on Risk Aversion," Journal of Political Economy, University of Chicago Press, vol. 87(4), pages 719-748, August.
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    12. Joachim Wagner, 2007. "What a Difference a Y makes-Female and Male Nascent Entrepreneurs in Germany," Small Business Economics, Springer, vol. 28(1), pages 1-21, January.
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    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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