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Afterlife: Who Takes Heart for Restart?

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  • Metzger, Georg

Abstract

The performance of young and newly founded firms depends largely to the human capital of the firm owner. The entrepreneur is therefore one of the main success factors for the firm. Yet entrepreneurs differ considerably in their background and characteristics. Particularly, founders? individual entrepreneurial experience is a property that might be crucial for firm development, though it is part of the firm?s human capital, too. Business failures, namely bankruptcies, may trigger the transition from being a novice entrepreneur to becoming an entrepreneur who is entrepreneurially experienced. About 3 percent of novice entrepreneurs who file for bankruptcy reestablish afterwards. On average, slightly more than 15 months will elapse until such ?fallen? entrepreneurs venture out anew. They differ from entrepreneurs not willing or able to take a second chance in several respects.

Suggested Citation

  • Metzger, Georg, 2006. "Afterlife: Who Takes Heart for Restart?," ZEW Discussion Papers 06-038, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  • Handle: RePEc:zbw:zewdip:4622
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    References listed on IDEAS

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    1. Everett, Jim & Watson, John, 1998. "Small Business Failure and External Risk Factors," Small Business Economics, Springer, vol. 11(4), pages 371-390, December.
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    Cited by:

    1. Metzger, Georg, 2006. "Once bitten, twice shy? The performance of entrepreneurial restarts," ZEW Discussion Papers 06-083, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    2. Furdas, Marina & Kohn, Karsten, 2010. "What's the Difference?! Gender, Personality, and the Propensity to Start a Business," IZA Discussion Papers 4778, Institute for the Study of Labor (IZA).
    3. Michael Wyrwich & Michael Stuetzer & Rolf Sternberg, 2016. "Entrepreneurial role models, fear of failure, and institutional approval of entrepreneurship: a tale of two regions," Small Business Economics, Springer, vol. 46(3), pages 467-492, March.

    More about this item

    Keywords

    Bankruptcy; Business Failure; Restart; Second Chance;

    JEL classification:

    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation

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