Necessity and Opportunity Entrepreneurs andtheir Duration in Self-employment:Evidence from German Micro Data

Using data from the German Socio-Economic Panel Study (GSOEP), we analyze whethernecessity entrepreneurs differ from opportunity entrepreneurs in terms of self-employmentduration. Using univariate statistics, we find that opportunity entrepreneurs remain in selfemploymentlonger than necessity entrepreneurs. However, after controlling for the entrepreneurs’education in the professional area where they start their venture, this effect is no longersignificant. We therefore conclude that the difference observed is not an original effect butrather is due to selection. We then go on to discuss the implications of our findings for entrepreneurship-policy making, and give suggestions to improve governmental start-up programs....