IDEAS home Printed from https://ideas.repec.org/p/wiw/wiwrsa/ersa02p175.html
   My bibliography  Save this paper

Entry-rates, the share of surviving businesses and employment growth: differences between West and East Germany since unification

Author

Listed:
  • Grotz, Reinhold
  • Brixy, Udo

Abstract

Entry-Rates, survival-rates and growth-rates vary considerably between regions. The aim of our paper is firstly to point out these differences in Germany as a whole. It will be shown how these three parameters work together. Are there regions in which all three are favourable for newly founded firms? Sternberg (2000) states that it is to be expected that in regions with high rates of entry the survival-rates should be high, too. This is because a convenient environment for the founding of new firms should be equally favourable for the further development of these firms. With a database that covers all newly founded establishments since 1983 (West-Germany) resp. 1992 (East-Germany), cohorts of each year can be analysed until the year 2000. In a second step we will analyse east - west differences since the unification. Newly founded firms are of outstanding importance for the development of the market economy in eastern Germany. The transition of the economic system came as a shock to existing firms and led to an enormous boom in the establishment of new firms. Brixy & Kohaut (1999) showed that shortly after unification a kind of 'start-window' existed during which the conditions for establishment, growth and survival of new firms were extraordinarily good. Now 12 years after the unification it can be shown, that founding-rates, growth-rates and survival-rates in both parts of Germany came into line. But there are sizeable regional differences in both parts. A in-depths comparison gives the possibility to compare the performance of special types of business over time and space in different cohorts. This should lead to a better understanding of the regional problems faced by regional economies.

Suggested Citation

  • Grotz, Reinhold & Brixy, Udo, 2002. "Entry-rates, the share of surviving businesses and employment growth: differences between West and East Germany since unification," ERSA conference papers ersa02p175, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa02p175
    as

    Download full text from publisher

    File URL: https://www-sre.wu.ac.at/ersa/ersaconfs/ersa02/cd-rom/papers/175.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Horst Brezinski & Michael Fritsch (ed.), 1996. "The Economic Impact of New Firms in Post-socialist Countries," Books, Edward Elgar Publishing, number 736.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Schnabel, Claus & Kohaut, Susanne & Brixy, Udo, 2008. "Employment Stability of Entrants in Newly Founded Firms: A Matching Approach Using Linked Employer-Employee Data from Germany," IZA Discussion Papers 3353, Institute of Labor Economics (IZA).
    2. Fuchs, Michaela & Wesling, Mirko & Weyh, Antje, 2014. "Potenzialnutzung in Ostdeutschland : eine Analyse von Angebot und Nachfrage auf dem Arbeitsmarkt," IAB-Forschungsbericht 201406, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    3. Fritsch, Michael, 2008. "Die Arbeitsplatzeffekte von Gründungen : ein Überblick über den Stand der Forschung (The employment effects of new businesses : a survey of the current state of research)," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 41(1), pages 55-69.
    4. Engel, Dirk & Metzger, Georg & Niefert, Michaela & Skambracks, Daniel, 2004. "Der Beschäftigungsbeitrag kleiner und mittlerer Unternehmen," RWI Materialien 11, RWI - Leibniz-Institut für Wirtschaftsforschung.
    5. Michael Fritsch & Udo Brixy & Oliver Falck, 2006. "The Effect of Industry, Region, and Time on New Business Survival – A Multi-Dimensional Analysis," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 28(3), pages 285-306, May.
    6. Brixy, Udo & Kohaut, Susanne & Schnabel, Claus, 2004. "How fast do newly founded firms mature? Empirical analyses on job quality in start-ups," Discussion Papers 30, Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
    7. Engel Dirk & Trax Michaela, 2008. "Der Beschäftigungsbeitrag kleiner und mittlerer Unternehmen nach der EU-Definition / The Employment Contribution of Small and Medium-sized Enterprises According to the EU-definition: Erste Ergebnisse ," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 228(1), pages 64-83, February.
    8. Dirk Engel & Georg Metzger & Michaela Niefert & Daniel Skambracks, 2004. "Der Beschäftigungsbeitrag kleiner und mittlerer Unternehmen," RWI Materialien, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, pages 38, 01.
    9. Michael Fritsch, 2008. "How does new business formation affect regional development? Introduction to the special issue," Small Business Economics, Springer, vol. 30(1), pages 1-14, January.
    10. Claus Schnabel & Susanne Kohaut & Udo Brixy, 2011. "Employment stability in newly founded firms: a matching approach using linked employer–employee data from Germany," Small Business Economics, Springer, vol. 36(1), pages 85-100, January.
    11. Fritsch, Michael & Weyh, Antje, 2004. "How large are the direct employment effects of new businesses? An empirical investigation," Freiberg Working Papers 2004/05, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.
    12. Michael Fritsch & Antje Weyh, 2006. "How Large are the Direct Employment Effects of New Businesses? An Empirical Investigation for West Germany," Small Business Economics, Springer, vol. 27(2), pages 245-260, October.
    13. repec:zbw:rwimat:011 is not listed on IDEAS
    14. Heckmann, Markus & Schnabel, Claus, 2005. "Überleben und Beschäftigungsentwicklung neu gegründeter Betriebe," Discussion Papers 39, Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
    15. Fritsch, Michael, 2008. "Die Arbeitsplatzeffekte von Gründungen : ein Überblick über den Stand der Forschung (The employment effects of new businesses : a survey of the current state of research)," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 41(1), pages 55-69.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Michael Wyrwich, 2012. "Regional Entrepreneurial Heritage in a Socialist and a Postsocialist Economy," Economic Geography, Taylor & Francis Journals, vol. 88(4), pages 423-445, October.
    2. Michael Fritsch, 2004. "Entrepreneurship, entry and performance of new business compared in two growth regimes: East and West Germany," Journal of Evolutionary Economics, Springer, vol. 14(5), pages 525-542, December.
    3. Wyrwich, Michael, 2013. "Can socioeconomic heritage produce a lost generation with regard to entrepreneurship?," Journal of Business Venturing, Elsevier, vol. 28(5), pages 667-682.
    4. Michael Wyrwich, 2011. "New business formation and regional growth across regions with distinct initial industry structures," ERSA conference papers ersa10p656, European Regional Science Association.
    5. Michael Wyrwich, 2015. "Entrepreneurship and the intergenerational transmission of values," Small Business Economics, Springer, vol. 45(1), pages 191-213, June.
    6. Michael Wyrwich & Ina Krause, 2011. "Coping with the market: Are there cohort effects for organisations in transition?," Journal of East European Management Studies, Rainer Hampp Verlag, vol. 16(1), pages 54-74.
    7. Michael Wyrwich, 2013. "In the name of my parents: Entrepreneurship and the intergenerational transmission of values," Jena Economics Research Papers 2013-031, Friedrich-Schiller-University Jena.
    8. Michael Fritsch & Elisabeth Bublitz & Alina Sorgner & Michael Wyrwich, 2014. "How much of a socialist legacy? The re-emergence of entrepreneurship in the East German transformation to a market economy," Small Business Economics, Springer, vol. 43(2), pages 427-446, August.
    9. Michael Wyrwich, 2020. "The value orientation of entrepreneurs in challenging institutional contexts: Insights from a unique historical episode," Jena Economics Research Papers 2020-001, Friedrich-Schiller-University Jena.
    10. Yvonne Schindele, 2010. "How Long Does it Take to Become an Entrepreneurial Society - The Case of German Convergence in Self-Employment," Jena Economics Research Papers 2010-015, Friedrich-Schiller-University Jena.
    11. Michael Fritsch, 2005. "Book Review: Review of “Small Firms and Entrepreneurship in Central and Eastern Europe – A Socio-Economic Perspective” edited by Oliver Pfirrmann and Günter H. Walter, Heidelberg and New York 2002: Ph," Small Business Economics, Springer, vol. 24(5), pages 497-498, June.
    12. Fritsch, Michael, 2013. "New Business Formation and Regional Development: A Survey and Assessment of the Evidence," Foundations and Trends(R) in Entrepreneurship, now publishers, vol. 9(3), pages 249-364, February.
    13. Michael Wyrwich, 2014. "Ready, set, go! Why are some regions entrepreneurial jump starters?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(2), pages 487-513, September.
    14. Kontorovich, Vladimir, 1999. "Has new business creation in russia come to a halt?," Journal of Business Venturing, Elsevier, vol. 14(5-6), pages 451-460.
    15. Acs, Zoltan & Virgill, Nicola, 2010. "Entrepreneurship in Developing Countries," Foundations and Trends(R) in Entrepreneurship, now publishers, vol. 6(1), pages 1-68, February.
    16. Berde, Éva & Scharle, Ágota, 2004. "A kisvállalkozók foglalkozási mobilitása 1992 és 2001 között [Employment mobility in small business between 1992 and 2001]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(4), pages 346-361.
    17. Michael Fritsch, 2011. "The effect of new business formation on regional development - Empirical evidence, interpretation, and avenues for further research," Jena Economics Research Papers 2011-006, Friedrich-Schiller-University Jena.
    18. Zuzana Brixiova & Wenli Li, 1998. "Skill Acquisition and Private Firm Creation in Transition Economies," William Davidson Institute Working Papers Series 162, William Davidson Institute at the University of Michigan.
    19. Michael Fritsch, 2008. "How does new business formation affect regional development? Introduction to the special issue," Small Business Economics, Springer, vol. 30(1), pages 1-14, January.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa02p175. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Gunther Maier (email available below). General contact details of provider: http://www.ersa.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.