Taking a Second Chance: Entrepreneurial Restarters in Germany

19 Pages Posted: 23 Jan 2002

See all articles by Joachim Wagner

Joachim Wagner

University of Lueneburg - Institute of Economics; Max Planck Society for the Advancement of the Sciences - Max Planck Institute for Economics; IZA Institute of Labor Economics

Date Written: January 2002

Abstract

Folklore has it that the comparatively low proportion of self-employed in Germany is in part due to a habit that might be termed "stigmatization of failure": taking a second chance to build one's own firm after failing as a self-employed is said to be much more difficult here than in other countries. This paper uses data from a large recent survey in ten German planning regions to document that 18 percent of today's firm owners founded a firm in the past that went out of business in between, and that 8 percent of people who went out of business with their former firm are actively engaged in starting a new business today. The determinants of such a restart are investigated econometrically. It turns out that both individual and regional factors are important for the probability of taking a second chance: This probability is negatively related to age, attitude towards risk, and the share of persons in the region who failed in the past, while it is positively related to personal contacts with a young entrepreneur and the regional share of nascent entrepreneurs.

Keywords: Entrepreneurship, Germany, Restart

JEL Classification: J23, R12

Suggested Citation

Wagner, Joachim, Taking a Second Chance: Entrepreneurial Restarters in Germany (January 2002). Available at SSRN: https://ssrn.com/abstract=297094

Joachim Wagner (Contact Author)

University of Lueneburg - Institute of Economics ( email )

PO Box 2440
D-21314 Luneburg
Germany
+49 4131 677 2330 (Phone)
+49 4131 677 2026 (Fax)

HOME PAGE: http://www.uni-lueneburg.de/wifo

Max Planck Society for the Advancement of the Sciences - Max Planck Institute for Economics ( email )

Kahlaische Strasse 10
D-07745 Jena, 07745
Germany

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
339
Abstract Views
2,380
rank
108,648
PlumX Metrics