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Public Policy and Success of Business Start-ups in Germany

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  • Eckl, Verena
  • Rothgang, Michael
  • Welter, Friederike

Abstract

In this paper, we evaluate the success of publicly supported business start-ups by comparing the outcomes of various support measures. Our question is: do business starter get what they need? Since we do not know the needs of the founders we analyse (1) who received which kind of support (financial support, individual coaching, general information) and (2) which kind of support is successful for whom with regard to his/her job history (employed, unemployed or being not part of the job market). While start-up measures possibly could aim at different kinds of eff ects, our focus is on the effect on subsequent firm growth. The analysis is based on a survey conducted in 2005. The sample was drawn from a highly heterogeneous population of business start-ups. By using propensity score exact matching for success measurement we try to capture those differences.

Suggested Citation

  • Eckl, Verena & Rothgang, Michael & Welter, Friederike, 2009. "Public Policy and Success of Business Start-ups in Germany," Ruhr Economic Papers 143, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    • Handle: RePEc:zbw:rwirep:143
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    References listed on IDEAS

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    2. Westhead, Paul & Wright, Mike, 1998. "Novice, portfolio, and serial founders: are they different?," Journal of Business Venturing, Elsevier, vol. 13(3), pages 173-204, May.
    3. Pfeiffer, Friedhelm & Reize, Frank, 2000. "Business start-ups by the unemployed -- an econometric analysis based on firm data," Labour Economics, Elsevier, vol. 7(5), pages 629-663, September.
    4. Colin Wren, 2002. "Evaluating the effect of soft business support upon small firm performance," Oxford Economic Papers, Oxford University Press, vol. 54(2), pages 334-365, April.
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    6. Markus Pannenberg, 1998. "Zunehmende Selbständigkeit in Deutschland von 1990 bis 1996: starke Veränderungen im Bestand," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 65(38), pages 687-691.
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    Cited by:

    1. Dirk Oberschachtsiek & Patrycja Scioch, 2015. "The outcome of coaching and training for self-employment. A statistical evaluation of outside assistance support programs for unemployed business founders in Germany [Die Erfolgswirkung von Gründer," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 48(1), pages 1-25, March.
    2. Oberschachtsiek, Dirk & Scioch, Patrycja, 2011. "The outcome of coaching and training for self-employment : a statistical evaluation of non-financial support schemes for unemployed business founders in Germany," IAB-Discussion Paper 201116, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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    More about this item

    Keywords

    Business start-ups; public policy; public support; matching;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General

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