Skip to main content
Log in

The Changing Face of Entrepreneurship in Germany

  • Published:
Small Business Economics Aims and scope Submit manuscript

Abstract

This paper explains individual start-up activities on the basis of both person-related characteristics and the regional context. The analysis is based upon micro data from the GEM adult population survey. Both individual and regional variables have an influence on the decision to become self-employed. There are considerable differences between nascent opportunity entrepreneurship and nascent necessity entrepreneurship. Whereas the results for opportunity entrepreneurship are in line with theoretical predictions the factors influencing necessity entrepreneurship are far more difficult to determine. The most significant change between 2001 and 2003/2004 is the reversal of the influence of a change in the regional rate of unemployment on nascent entrepreneurship activities.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Armington C., and Acs Z. J., 2002, ‚The Determinants of Regional Variation in New Firm Formation’, Regional Studies 36, 33–45

    Article  Google Scholar 

  • Audretsch D. B., and Fritsch M., 1994, ‚The Geography of Firm Births in Germany’, Regional Studies 28, 359–365

    Google Scholar 

  • Bartik T. J., 1989, ‚Small Business Start-Ups in the United States: Estimates of the Effects of Characteristics of States’, Southern Economic Journal 55, 1004–1018

    Article  Google Scholar 

  • Bates T., 1995, ‚Self-Employment Entry across Industry Groups’, Journal of Business Venturing 10, 143–156

    Article  Google Scholar 

  • Bergmann H., 2004, Gruendungsaktivitaeten im regionalen Kontext, Gruender, Gruendungseinstellungen und Rahmenbedingungen in zehn deutschen Regionen [Start-up Activities in a Regional Context, Founders, Entrepreneurial Attitudes and Framework Conditions in ten German Regions], Koelner Forschungen zur Wirtschafts- und Sozialgeographie, 57, Cologne: Institute of Economic and Social Geography

  • Brixy U., and Grotz R., 2002, Raeumliche Differenzierungen von Betriebsgruendungen und Ueberlebenschancen in Westdeutschland 1983 bis 1997 [Spatial Differenciation of Start-ups and Survival Chances in West-Germany 1983 to 1997], Raumforschung und Raumordnung 60, 100–122

    Google Scholar 

  • Bygrave W. D., 1997, The Portable MBA in Entrepreneurship, 2nd ed., New York: John Wiley & Sons

  • Carter N., 1997, ‚Entrepreneurial Processes and Outcomes: The Influence of Gender’, in: P. D. Reynolds and S. B. White (eds.), The Entrepreneurial Process, Westport: Quorum Books

  • Centre for European Economic Research (ZEW) (ed.), 2004, ‚Ich-Ags fuehren zu mehr Gruendungen in Deutschland’ [Me Inc. Lead to More Start-ups in Germany], ZEW- Gruendungsreport 4, 1–2

  • Davidsson P., and Honig B., 2003, ‚The Role of Social and Human Capital among Nascent Entrepreneurs’, Journal of Business Venturing 18, 301–331

    Article  Google Scholar 

  • Feldman M. P., 2001, ‚The Entrepreneurial Event Revisited: Firm Formation in a Regional Context’, Industrial and Corporate Change 10, 861–891

    Article  Google Scholar 

  • Fritsch M. and O. Falck, 2002, New Firm Formation by Industry over Space and Time: A Multi-Level Analysis, Freiberg Working Papers, Technical University of Freiberg, Faculty of Economics and Business Administration

  • Ilmakunnas P., and Kanniainen V., 2001, ‚Entrepreneurship, Economic Risks, and Risk Insurance in the Welfare State: Results with OECD Data 1978–93’, German Economic Review 2, 195–218

    Article  Google Scholar 

  • Knight, F. H., 1921, Risk, Uncertainty and Profit, Boston, New York: Houghton Mifflin Company; Cambridge: The Riverside Press, College Station, TX: Stata Press

  • Long, J. S. and J. Freese, 2003, Regression Models for Categorical Dependent Variables Using Stata, College Station TX: STATA Press

  • Minitti, M., W. D. Bygrave and E. Autio, 2006, Global Entrepreneurship Monitor 2005 Executive Report, Babson College: London Business School

  • Moulton B. R., 1990, ‚An Illustration of a Pitfall in Estimating the Effects of Aggregate Variables on Micro Units’, Review of Economics and Statistics 72, 334–338

    Article  Google Scholar 

  • Reynolds P. D., 2005, ‚Understanding Business Creation: Serendipity and Scope in Two Decades of Business Creation Studies’, Small Business Economics 24, 359–364

    Article  Google Scholar 

  • Reynolds P. D., Storey D., and Westhead P., 1994, ‚Cross-National Comparisons of the Variation in New Firm Formation Rates’, Regional Studies 28, 443–456

    Google Scholar 

  • Reynolds, P. D., W. D. Bygrave and E. Autio, 2004, Global Entrepreneurship Monitor, 2003 Executive Report, With contributions from Pia Arenius, Paula Fitzsimons, Maria Minniti, Sinead Murray, Colm O’Goran and Frank Roche, Babson College, London Business School, Ewing Marion Kauffman Foundation

  • Reynolds P., Bosma N., Autio E., Hunt S., De Bono N., Servais I., Lopez-Garcia P., Chin N., 2005, ‚Global Entrepreneurship Monitor: Data Collection and Implementation 1998–2003’, Small Business Economics 24, 205–231

    Article  Google Scholar 

  • Robinson P. B., and Sexton E. A., 1994, ‚The Effect of Education and Experience on Self-Employment Success’, Journal of Business Venturing 9, 141–156

    Article  Google Scholar 

  • Robinson W., 1950, ‚Ecological Correlations and Behavior of Individuals’, American Sociological Review 15, 351–357

    Article  Google Scholar 

  • Rocha H., and Sternberg R., 2005, ‚Entrepreneurship: The Role of Clusters, Theoretical Perspectives and Empirical Evidence from Germany’, Small Business Economics 24(3), 267–292

    Article  Google Scholar 

  • Schulz N., 1995, Unternehmensgruendungen und Markteintritt [Firm Foundations and Market Entry], Heidelberg: Physica

  • Shapero, A., 1984, ‚The Entrepreneurial Event’, in: C. A. Kent (ed.), The Environment for Entrepreneurship, Lexington/Toronto: Lexington Books, pp. 21–40

  • Shapero, A. and L. Sokol, 1982, ‚The Social Dimensions of Entrepreneurship’, in: C. Kent et al. (eds.), The Encyclopedia of Entrepreneurship, Prentice-Hall: Englewood Cliffs, pp.␣72–90

  • Snijders, T. A. B. and R. J. Bosker, 1999, Multilevel Analysis, Sage: London

  • Stata Corporation, 2003, Stata User’s Guide, Release 8, Stata Corporation: College Station

  • Sternberg, R., 2000, ‚Entrepreneurship in Deutschland, Das Gruendungsgeschehen im internationalen Vergleich, Laenderbericht Deutschland 1999 zum Global Entrepreneurship Monitor’ [Entrepreneurship in Germany, An International Comparison of Entrepreneurial Activities, GEM Country Report Germany 1999], Berlin: Edition Sigma

  • Sternberg R., 2004, ‚Entrepreneurship Research – The Relevance of the Region and Tasks Facing Economic Geography’, Geographische Zeitschrift 92, 18–38

    Google Scholar 

  • Sternberg, R. and H. Bergmann, 2003, Global Entrepreneurship Monitor, Laenderbericht Deutschland 2002 [Global Entrepreneurship Monitor: Country Report Germany 2002], Cologne: Institute of Economic and Social Geography, University of Cologne

  • Sternberg, R., H. Bergmann and I. Lueckgen, 2004, Global Entrepreneurship Monitor (GEM), Laenderbericht Deutschland 2003 [Global Entrepreneurship Monitor: Country Report Germany 2003], Cologne: Institute of Economic and Social Geography, University of Cologne

  • Sternberg, R., U. Brixy and J.-F. Schlapfner, 2006, Global Entrepreneurship Monitor (GEM), Laenderbericht Deutschland 2005, [Global Entrepreneurship Monitor: Country Report Germany 2005], Hannover: Institute of Economic and Cultural Geography, Leibnitz University of Hannover

  • Storey, D. J., 1994, Understanding the Small Business Sector, London: International Thomson Business Press

  • Verheul, I., G. Leonardo, S. Schueller and J. van Spronsen, 2002a, ‚Determinants of Entrepreneurship in Germany’, in: Audretsch et al., Entrepreneurship: Determinants and Policy in a European-US Comparison, Dordrecht: Kluwer, pp. 163–208

  • Verheul, I., S. Wennekers, D. Audretsch and R. Thurik, 2002b, ‚An Eclectic Theory of Entrepreneurship: Policies, Institutions and Culture’, in: Audretsch et al., Entrepreneurship: Determinants and Policy in a European-US Comparison, Dordrecht: Kluwer, pp. 11–82

  • Wagner J., 2003, ‚Taking a Second Chance, Entrepreneurial Restarters in Germany’, Applied Economics Quarterly 49, 255–272

    Google Scholar 

  • Welter, F. and B. Lageman, 2003, Gruenderinnen in DeutschlandPotenziale und institutionelles Umfeld [Female Entrepreneurs in Germany – Potentials and Institutional Environment], Untersuchungen des Rheinisch-Westfaelischen Instituts fuer Wirtschaftsforschung, Heft 41, Essen: RWI

  • Welter F., and Rosenbladt B. V., 1998, Der Schritt in die Selbstaendigkeit, Gruendungsneigung und Gruendungsfaehigkeit in Deutschland [The Step into Self-Employment, Start-up Propensity and Start-up Ability in Germany], Internationales Gewerbearchiv 46, 234–248

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Heiko Bergmann.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Bergmann, H., Sternberg, R. The Changing Face of Entrepreneurship in Germany. Small Bus Econ 28, 205–221 (2007). https://doi.org/10.1007/s11187-006-9016-z

Download citation

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11187-006-9016-z

Key words

Jel classifications

Navigation