Are Young and Small Firms Hothouses for Nascent Entrepreneurs? Evidence from German Micro Data

16 Pages Posted: 10 Feb 2004

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 2004

Abstract

Using a large recent representative sample of the German population this paper contributes to the entrepreneurship literature by empirically testing the hypothesis that young and small firms are hothouses for nascent entrepreneurs. The empirical estimation takes the rare events nature of becoming a nascent entrepreneur and the regional stratification of the sample into account. Controlling for various individual characteristics and attitudes (sex, age, risk aversion, presence of a role model in the family, and the width of professional background) we illustrate both the statistical significance and the economic importance for entrepreneurship of work experience in a firm that is both young and small.

Keywords: entrepreneurship, young and small firms, rare events logit, Germany

JEL Classification: J23, R12

Suggested Citation

Wagner, Joachim, Are Young and Small Firms Hothouses for Nascent Entrepreneurs? Evidence from German Micro Data (January 2004). Available at SSRN: https://ssrn.com/abstract=494202

Joachim Wagner (Contact Author)

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