From Unemployment to Self-Employment–Public Promotion and Selectivity

Pfeiffer, Friedhelm; Reize, Frank

doi:10.1080/15579336.2000.11770219

Cited by 24 publications

(19 citation statements)

References 11 publications

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“…For instance, the recent study by Constant and Zimmermann (2006) analyzed the characteristics of the self-employed immigrant and German males. Pfeiffer and Reize (2000) analyzed the transition from unemployment to self-employment.…”

Section: Sample and Data Sourcementioning

confidence: 99%

Entrepreneurship in the Region: Breeding Ground for Nascent Entrepreneurs?

2006

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This paper employs data from the German Socioeconomic Panel (SOEP) and data from the German Social Insurance Statistics to study nascent entrepreneurship. In particular, micro data from the SOEP characterizing employees and nascent entrepreneurs is combined with data characterizing the entrepreneurial environment. The principal findings suggest that individuals are embedded in their local entrepreneurial environment which influences an individual especially at the beginning of the decision process about whether to become self-employed. Work and previous self-employment experience is more important than formal education for the likelihood of being a nascent entrepreneur. Furthermore, social capital is an important stimulus for nascent entrepreneurs. Finally, the results indicate that financial assets are less important for nascent entrepreneurs. Copyright Springer 2006entrepreneurship, SOEP, self-employment, young and small firms, J23, M13, R12,

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Section: Sample and Data Sourcementioning

confidence: 99%

Entrepreneurship in the Region: Breeding Ground for Nascent Entrepreneurs?

2006

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“…Consequently, the threshold of the expected income stream on which a decision in favour of self-employment is made is lower for them also. Assuming that a higher income stream from self-employment requires higher initial investments, one should expect business start-ups by the unemployed to be smaller, to require less capital, and to occur with a higher probability in industries with low market entry costs (Pfeiffer and Reize, 2000a;2000b). Lower initial investments may also result from financial constraints faced by the unemployed (Storey, Watson and Wynarczyk, 1988).…”

Section: Theoretical Backgroundmentioning

confidence: 97%

“…To start with the characteristics of previously unemployed founders, empirical studies indicate that participants of programmes promoting start-ups from unemployment are a positive selection of the unemployed-they are more often highly educated, young, male and unemployed for only a short period of time (Meager, 1995, for Germany and Great Britain;Graves and Gauthier, 1994, for Canada;and O´Leary, 1999, for Hungary and Poland). Studies analyzing the German bridging allowance programme find that the unemployed founders' sociodemographic characteristics and educational backgrounds are much closer to other self-employed persons than to the rest of the unemployed (Hinz and Jungbauer-Gans, 1999;Pfeiffer and Reize, 2000b;Wießner, 2001;Reize, 2004). The characteristics of the "Me inc." recipients are much closer to the average unemployed, which is due to the different design of this programme.…”

Section: Empirical Evidence To Datementioning

confidence: 98%

“…Only few studies have conducted such direct comparisons so far (Hinz and Jungbauer-Gans, 1999;Pfeiffer and Reize, 2000b;Reize, 2004;Andersson and Wadensjö, 2007). They found that unemployed founders hardly differ from the other self-employed in terms of sociodemographic characteristics and educational backgrounds, but that they start firms which are smaller, require less capital, and grow more slowly than other start-ups.…”

Section: Introductionmentioning

confidence: 93%

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Characteristics and Determinants of Start-ups from Unemployment: Evidence from German Micro Data

Niefert

2010

Journal of Small Business & Entrepreneurship

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The study empirically analyzes the characteristics and determinants of start-ups from unemployment in Germany. Individual unemployment is shown to be an important push-factor for the transition to selfemployment. The selection of the higher-educated into self-employment is stronger among the unemployed than among the employed. The educational level of formerly unemployed founders is comparable to those of other founders. Start-ups from unemployment have fewer employees on average and are mostly one-man firms. A large proportion of them are in less capital-intensive sectors characterized by a high level of competition. The smaller propensity of previously unemployed founders to invest and to take on employees can be attributed to their restricted access to finance and information on opportunities. Subsidising start-ups from unemployment with loans instead of grants and helping the unemployed to improve their abilities in opportunity recognition should enhance the quality of start-ups from unemployment.RéSUMé. Cette étude analyse empiriquement les caractéristiques de jeunes entreprises créées par des gens sans emploi en Allemagne ainsi que les déterminants de leur création. Le fait de se retrouver sans emploi est identifié comme un facteur important qui pousse les gens à la faire la transition vers le travail indépendant. Parmi les individus ayant un plus haut niveau d'éducation, le choix du travail indépendant est plus prévalent chez ceux qui sont au chômage que chez ceux qui ont un emploi. Le niveau d'éducation des gens qui étaient sans emploi et qui ont créé leur entreprise est comparable à celui des autres fondateurs d'entreprises. Les jeunes entreprises créées par des gens sans emploi ont en moyenne moins d'employés et sont surtout des entreprises personnelles. Une forte proportion de ces entreprises se trouvent dans des secteurs moins capitalistiques, marqués par une forte concurrence. Le fait que les fondateurs qui étaient au préalable sans emploi ont une plus faible propension à investir dans leur entreprise et à engager d'autres individus peut être expliqué par leur accès restreint à du financement et à l'information à l'égard des opportunités disponibles. Afin d'améliorer la qualité des jeunes entreprises fondées par des gens au chômage, il serait préférable de leur offrir un financement sous la forme de prêts au lieu de subventions et aussi d'améliorer leur habileté à reconnaître des opportunités d'affaires.

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“…Whereas scholars note that a distinction must be drawn between those who seek entrepreneurial ventures as a means of survival and those who are motivated to achieve or succeed (Carsrud and Brännback ), this paper seeks to look at that small segment of individuals who intend to become entrepreneurs after involuntarily losing their job. The fact that not all unemployed individuals choose to become entrepreneurs (Pfeiffer and Reize ) highlights the need to understand the factors that enable or encourage some of those who lose their jobs to become entrepreneurs. As Blanchflower and Oswald have observed, “the forces that affect the supply of entrepreneurship are widely viewed as important but poorly understood” (Blanchflower and Oswald , p. 50).…”

Section: Introductionmentioning

confidence: 99%

Antecedents of Entrepreneurial Intention among Laid-Off Individuals: A Cognitive Appraisal Approach

Virick

Basu²,

Rogers³

2013

Journal of Small Business Management

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This study contributes to our understanding of why laid‐off individuals might explore entrepreneurial careers. Findings among 838 laid‐off individuals suggest that financial strain is associated with negative appraisal of the layoff, and openness to change and perceived organizational support are associated with positive appraisal of the layoff. We demonstrate that the indirect effect of financial impact and openness to change via negative and positive appraisals are stronger than the direct effects. Our results are significant because they highlight the mediating role of cognitive factors on entrepreneurial intentions among laid off individuals during periods of high unemployment.

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From Unemployment to Self-Employment–Public Promotion and Selectivity

Cited by 24 publications

References 11 publications

Entrepreneurship in the Region: Breeding Ground for Nascent Entrepreneurs?

Entrepreneurship in the Region: Breeding Ground for Nascent Entrepreneurs?

Characteristics and Determinants of Start-ups from Unemployment: Evidence from German Micro Data

Antecedents of Entrepreneurial Intention among Laid-Off Individuals: A Cognitive Appraisal Approach

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