Characteristics of nascent entrepreneurs in Germany

Abstract

Currently, the rate of creation of new enterprises -or start-ups- is considered as \none of the maximum exponents of competitiveness within the different economies. The \ninterest regarding the appearance of new enterprises has made numerous governments \nin the continent implement a series of support measures in that direction. It is expected \nthat the European productive fabric can be revitalized in this way, and therefore to be \nable to compete with the present superiority of the United States, especially in the field \nof the so-called “new economy”. However, very little is still known with respect to the \nspecific characteristics of the individuals who create those enterprises. The knowledge \nabout the figure of the entrepreneur could allow a greater effectiveness of the measures \nalready in operation, as well as of others that may be implemented. \nIn this work we seek to contribute to a better knowledge of the European \nentrepreneur through an analysis of the characteristics of nascent entrepreneurs in \nGermany, a major Central European country. Given that Germany is the most important \neconomy in the continent, and taking into account the narrow cultural interrelations with \nthe neighbouring countries, we understand that this study can be representative of that \narea in Europe. \nFor this study we will be using data from the Panel Comparability (PACO) \nProject, which includes a longitudinal panel of German households. The Panel data \nprovide information on economic variables and both personal and family characteristics \nthat may influence the decision of creating a new enterprise. It allows us to analyze the \nfeatures presented by the prospective entrepreneurs before the creation of their \nenterprises. Thus, we can approach to the ideal situation of studying which are the \nfactors that cause the decision of settling down as an entrepreneur.

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