Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW.Download this ZEW Discussion Paper from our ftp server:ftp://ftp.zew.de/pub/zew-docs/dp/dp06083.pdf Non-Technical SummaryNew firm formation is the driving force behind structural changes in the economy. In particular, the creation of new jobs is an important macroeconomic issue which is related with entrepreneurial activities. It has often been shown that new firms make substantial contributions to the labor market. Firm growth is closely connected with this job-providing function. In studies that deal with the topic of growth, firm characteristics such as size and age are the most frequently considered performance factors. But these characteristics are not set in stone; rather they are outcomes of management decisions. Managers -in small businesses usually the entrepreneurs themselves -play the dominant role in a firm's appearance and its development. So their entrepreneurial ability is the key factor behind the firm's success. To some basic degree their managerial ability is surely given by nature. However, it also depends to a large extent on training. The experience that an entrepreneur gathers while working as a manager can be seen as a kind of training. Thus, entrepreneurial experience should be relevant for firm performance.The purpose of this paper is to test four hypotheses. The first hypothesis is related to the effect of general entrepreneurial experience on firm growth derived from both human capital and insider/outsider-theory (H1). The next two hypotheses are linked with the effects of specific entrepreneurial experience namely business failure experience. Applying the theory of behaviorism and the principal/agent-theory suggests that experience of failure should have a negative effect on firm performance (H2a). On the other hand, both the general validity of the human capital theory and selection mechanisms suggests positive effects (H2b). Lastly, the third hypothesis is based on time effects and proposes that the effects of experience disappear with firm age (H3).To show the influence of entrepreneurial experience on firm growth the employment growth rate as the dependent variable is fitted to a set of independent growth determinants. In order to control for firm survival the Heckman selection correction is applied. Additionally, a semiparametric specification is used to relax presumptions of the parametric model.The results of the analyses partly confirm human capital theory: entrepreneurial experience has a positive impact on firm performance -p...

Many entrepreneurs who close a business are actually willing to venture anew. However, to realize a restart is not only a matter of willingness on the part of the entrepreneur but also of its feasibility. Regarding the feasibility of a restart, the aspect of capital acquisition might be particularly precarious for renascent entrepreneurs since business closures are likely to come up with financial losses. Financial losses arising from business closure can befall various stakeholders: shareholders, banks and public institutions, or suppliers and other stakeholders. The major finding of this analysis is that financial losses due to business closure strongly influence the likelihood of entrepreneurial restart -yet only when losses are incurred by banks. Losses which are incurred privately by the entrepreneurs or by other stakeholders do not influence the restart likelihood. Entrepreneurs who would seek to continue their entrepreneurial career after a business closure would be well advised to avoid causing losses at banks.

Die Discussion Papers dienen einer möglichst schnellen Verbreitung von neueren Forschungsarbeiten des ZEW. Die Beiträge liegen in alleiniger Verantwortung der Autoren und stellen nicht notwendigerweise die Meinung des ZEW dar.Discussion Papers are intended to make results of ZEW research promptly available to other economists in order to encourage discussion and suggestions for revisions. The authors are solely responsible for the contents which do not necessarily represent the opinion of the ZEW.Download this ZEW Discussion Paper from our ftp server:ftp://ftp.zew.de/pub/zew-docs/dp/dp06038.pdfAfterlife -Who Takes Heart for Restart? Non-technical summaryThe topic of entrepreneurship research slightly changes from the firm-view to the individual level, i.e. the focus shifts increasingly to the entrepreneur behind the firm as the object of investigation. In the course of this, it became apparent that a large section of the entrepreneurial activity is attributable to habitual entrepreneurs and therefore to individuals establishing more than once. These serial-or portfolioentrepreneurs have entrepreneurial experience that helps them to perform better on average than inexperienced entrepreneurs. However, entrepreneurial experience often goes to waste since starting anew is rarely the first option if one has already failed with a firm.The approach in this paper is to identify the key factors characterizing entrepreneurs who failed with a business (i.e. went bankrupt) but started anew after the set-back (so called 'restarters'). Two main hypotheses are tested: firstly, is restart probability AbstractThe performance of young and newly founded firms depends largely to the human capital of the firm owner. The entrepreneur is therefore one of the main success factors for the firm. Yet entrepreneurs differ considerably in their background and characteristics. Particularly, founders' individual entrepreneurial experience is a property that might be crucial for firm development, though it is part of the firm's human capital, too. Business failures, namely bankruptcies, may trigger the transition from being a novice entrepreneur to becoming an entrepreneur who is entrepreneurially experienced. About 3 percent of novice entrepreneurs who file for bankruptcy reestablish afterwards. On average, slightly more than 15 months will elapse until such 'fallen' entrepreneurs venture out anew. They differ from entrepreneurs not willing or able to take a second chance in several respects.