Liñán Alcalde, F ancisco; Ma ín Ma ín, Domingo; González Rod íguez,
Rosa io
Con e ence Pape
Cha ac e is ics o nascen en ep eneu s in Ge many
42nd Cong ess o he Eu opean Regional Science Associa ion: "F om Indus y o
Ad anced Se ices - Pe spec i es o Eu opean Me opoli an Regions", Augus 27 h - 31s ,
2002, Do mund, Ge many
P o ided in Coope a ion wi h:
Eu opean Regional Science Associa ion (ERSA)
Sugges ed Ci a ion: Liñán Alcalde, F ancisco; Ma ín Ma ín, Domingo; González Rod íguez,
Rosa io (2002) : Cha ac e is ics o nascen en ep eneu s in Ge many, 42nd Cong ess o he
Eu opean Regional Science Associa ion: "F om Indus y o Ad anced Se ices - Pe spec i es
o Eu opean Me opoli an Regions", Augus 27 h - 31s , 2002, Do mund, Ge many, Eu opean
Regional Science Associa ion (ERSA), Lou ain-la-Neu e
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42nd ERSA Con e ence. Do mund (Ge many), 27-31 augus 2002
Cha ac e is ics o nascen en ep eneu s in Ge many
F ancisco LIÑÁN ALCALDE; Domingo MARTÍN MARTÍN; Mª Rosa io GONZÁLEZ RODRÍGUEZ
Depa amen o de Economía Aplicada I. Uni e sidad de Se illa.
A . Ramón y Cajal, 1; 41018-Se illa. Tel.: 00.34.95455.4487/7184/7550. Fax: 00.34.95455.7547
[email p o ec ed] , dom[email p o ec ed] , [email p o ec ed]
Abs ac
Cu en ly, he a e o c ea ion o new en e p ises -o s a -ups- is conside ed as
one o he maximum exponen s o compe i i eness wi hin he di e en economies. The
in e es ega ding he appea ance o new en e p ises has made nume ous go e nmen s
in he con inen implemen a se ies o suppo measu es in ha di ec ion. I is expec ed
ha he Eu opean p oduc i e ab ic can be e i alized in his way, and he e o e o be
able o compe e wi h he p esen supe io i y o he Uni ed S a es, especially in he ield
o he so-called “new economy”. Howe e , e y li le is s ill known wi h espec o he
speci ic cha ac e is ics o he indi iduals who c ea e hose en e p ises. The knowledge
abou he igu e o he en ep eneu could allow a g ea e e ec i eness o he measu es
al eady in ope a ion, as well as o o he s ha may be implemen ed.
In his wo k we seek o con ibu e o a be e knowledge o he Eu opean
en ep eneu h ough an analysis o he cha ac e is ics o nascen en ep eneu s in
Ge many, a majo Cen al Eu opean coun y. Gi en ha Ge many is he mos impo an
economy in he con inen , and aking in o accoun he na ow cul u al in e ela ions wi h
he neighbou ing coun ies, we unde s and ha his s udy can be ep esen a i e o ha
a ea in Eu ope.
Fo his s udy we will be using da a om he Panel Compa abili y (PACO)
P ojec , which includes a longi udinal panel o Ge man households. The Panel da a
p o ide in o ma ion on economic a iables and bo h pe sonal and amily cha ac e is ics
ha may in luence he decision o c ea ing a new en e p ise. I allows us o analyze he
ea u es p esen ed by he p ospec i e en ep eneu s be o e he c ea ion o hei
en e p ises. Thus, we can app oach o he ideal si ua ion o s udying which a e he
ac o s ha cause he decision o se ling down as an en ep eneu .
1
Cha ac e is ics o nascen en ep eneu s in Ge many
F. Liñán Alcalde; D. Ma ín Ma ín & M.R. González Rod íguez
1. In oduc ion
The ole o he en ep eneu in he p ocess o economic de elopmen is
nowadays b oadly acknowledged. F om he c isis o he se en ies, a esu gence o he
impo ance o small and medium en e p ises in he economy ook place, wi h hese
en e p ises g owing mo e and gene a ing mo e employmen . Besides hese en e p ises
play an essen ial ole in he R&D p ocesses (S o ey, 1994; Schwallbach, 1994; Cohen
and Kleppe , 1996). A he same ime, as a logical consequence, esea ch on hose small
en e p ises and on he en ep eneu ’s igu e has acqui ed a g ea e ele ance h ough
ime. Thus, he s udy o he p ocess ha leads om an inclina ion owa ds he
en ep eneu ial ac i i y o he c ea ion and de elopmen o one o se e al small
en e p ises has been called “en ep eneu ship” (Ga ne , 1990; Byg a e and Ho e ,
1991; Woo e o he., 1991).
Al hough i is s ill a ela i ely new ield o s udy, whe e he ag eemen s a e s ill
insu icien (Fie , 2000), he e is an impo an le el o coincidence abou he di ision o
wha we could denomina e he “En ep eneu ial P ocess” (K uege , 1993; Ha ey and
E ans, 1995) in o a se ies o phases. So, hose people who ha e no s ill aken any s ep
owa ds he c ea ion o an en e p ise, bu who a e somehow p one o ha ac i i y, a e
conside ed Po en ial En ep eneu s (K uege and B azeal, 1993). The indi iduals ha
a e in he phase o e ec i e c ea ion o an en e p ise a e called Nascen En ep eneu s
(Ca e e al., 1996; Reynolds, 2000), and hei s udy is equen ly known as
En ep eneu ial Eme gency (Cáce es, 1999). The s udy o he de elopmen and g ow h
o he en e p ise is e med En ep eneu ial Dynamism (San os, 1998). Some au ho s
s ess ha p ocess iew when hey speak o he Theo y o he En ep eneu ial Ca ee
(Dye , 1994).
Meanwhile, decision-make s ha e being paying an inc easing a en ion o
en ep eneu ship and new small en e p ises o hei capaci y o gene a e employmen
and o s imula e he economy. Fo his eason, cu en s a egies o de elopmen (as
Endogenous De elopmen o Local Economic Policy) clea ly conside , as one o hei
main ins umen s, he p omo ion o he endogenous en ep eneu ial ini ia i e (Vázquez
Ba que o, 1993, 1999; Ga o oli, 1992; Mailla , 1988). Ne e heless, many o hose
2
ini ia i es ha e had e y limi ed esul s (Liñán, 2001). This ci cums ance has
es ablished he need o know mo e abou he cha ac e is ics o hose indi iduals who
decide o s a a new en e p ise, and he ac o s ha in luence ha decision. The e o e,
he analysis o nascen en ep eneu s has acqui ed g ea ecogni ion, because hey a e
indi iduals ha ha e al eady o e come he phase o po en ial en ep eneu s (whe e hei
en ep eneu ial inclina ion had no s ill been de eloped, emaining la en ), bu ha e no
comple ely es ablished hei en e p ise ye ( hey a e no s ill ac i e en ep eneu s). I is,
hen, a e y delica e phase o he en ep eneu ial p ocess ha co esponds o he
ealiza ion o he i s conc e e ac i i ies ha will lead o he c ea ion o a new
en e p ise. The s udy o he aspec s ha make a g ea e numbe o people in ol ed in
he p ocess o c ea ion o new en e p ises is, he e o e, an essen ial elemen o he
e ec i e p omo ion o en ep eneu ship.
Acco dingly, ou objec i e in his wo k will be o analyse he ac o s ha a ec
he decision o become an en ep eneu h ough he s udy o he cha ac e is ics o
nascen en ep eneu s. We will ocus speci ically on he si ua ion o he mos impo an
economy in he Eu opean Union, Ge many. Reynolds (2000) o e s da a indica ing ha
he si ua ion and cha ac e is ics o nascen en ep eneu s in he coun ies o he cen e
and he no h o Eu ope is qui e simila , so we unde s and ha he Ge man case can be
su icien ly ep esen a i e. Besides, al hough he da a we ha e used a e a ailable o
o he coun ies, i is in Ge many whe e he ime pe iod emb aced by he da abase is
wide .
2. Condi ioning ac o s o he decision o become an en ep eneu
Nume ous s udies ha e been ca ied ou o y o iden i y which ac o s in luence
mo e decisi ely he decision o become an en ep eneu . Howe e , he esul s ha e no
been su icien ly conclusi e up o now o di e en easons. Fi s ly, many o hose
s udies su e om a se ies o qui e se ious me hodological p oblems. Secondly, he
lack o a su icien ly de eloped ag eemen on he concep o he en ep eneu and on he
en ep eneu ial p ocess has made he app oaches di e , p o iding some imes
con adic o y esul s.
Me hodological p oblems in he measu emen o en ep eneu ship
In he i s place, i seems su icien ly es ablished oday ha a leng hy ime
pe iod exis s om he momen he indi idual decides o be a en ep eneu un il he
en e p ise is in ope a ion. I is a p ocess ha may ake om some mon hs o se e al
yea s (Wol e s, 2000; Ca e e al., 1996). The e o e, i is necessa y o analyze he
3
indi idual's ci cums ances be o e hei en e p ise is al eady es ablished. Howe e , i i is
di icul o access eliable da a on he newly es ablished en e p ises, i is much mo e
complex o ob ain in o ma ion abou people ha ha e no ye c ea ed hei en e p ise.
So, i is no s ange ha , un il e y ecen ly, empi ical s udies ha e used ad hoc c oss-
sec ional samples. These s udies ob ain in o ma ion, h ough su eys o o he means,
om ac i e en ep eneu s. As a consequence, he en ep eneu 's pos -c ea ion si ua ion
is being conside ed as he causal ac o o es ablishing he en e p ise. A he mos , he
esponden is asked e ospec i ely abou hei ci cums ances when he en e p ise was
c ea ed, wi h he co esponding isk o a signi ican bias (Reynolds, 1997; San os, 1998;
Cáce es, 1999). Thus, he consis ency o esul s is doub ul. In his sense, s udies based
on panel da a allow a much mo e co ec app oach om he me hodological poin o
iew.
Ano he ques ion o keep in mind ega ds he me hod o ob ain he sample. I is
ela i ely equen he use o pos al (o phone) ques ionnai es sen o a sample o
indi iduals ou o some da abase. Besides he p oblem o wo king wi h c oss sec ional
da a, al eady poin ed ou , he e is an addi ional p oblem ega ding he low answe a e
usually ob ained by his me hod. No mally, he co ec ly comple ed ques ionnai es a e a
e y educed pe cen age: be ween 18 and 36% o hose sen (Bi ley and Wes head,
1994; Ca e e al., 1996; Wes head and W igh , 1998). The e is he isk, again, o a
signi ican bias in he sample. The indi iduals who do no answe may p esen ce ain
cha ac e is ics ha make hem di e en , o wha he sample would no be
ep esen a i e (Ga ne , 1985).
Finally, when using ques ionnai es, i is necessa y o be e y ca e ul wi h hei
elabo a ion and wi h he manipula ion o he da a ob ained, especially when we y o
measu e ea u es no di ec ly obse able like he in e iewee's opinion, hei pe sonali y
ai s, hei pe cep ions, e c. (Da idsson, 1991). In pa icula , when he essen ial
mo i a ion ha akes he indi idual o he c ea ion o he en e p ise is analysed, i is
necessa y o be ex emely ca e ul. In his sense, Bi ley and Wes head (1994) ound ha
he easons o c ea e he en e p ise a e e y a ied. These au ho s included in hei
ques ionnai e wen y- h ee s a emen s in ela ion o mo i a ion, hey we e la e
o hono malized o iden i y se en main easons o c ea ion. Howe e , i is in e es ing
o no e ha a high le el o ag eemen wi h some o hose wen y- h ee s a emen s could
co espond wi h di e en co e easons (depending on he answe s o o he s a emen s).
Thus, he s a emen ega ding he desi e o ob ain high incomes, appea s wi h a high
alue bo h in he mo i a ion “Need o App o al” and in “Ins umen ali y o weal h”.
So, in he i s case, indi iduals migh desi e weal h only as long as i can g an hem

4
app o al om he membe s o hei communi y, while in he second case, i would
co espond wi h he secu i y i o e s. The e o e, i is necessa y o be ex emely ca e ul
wi h he iden i ica ion o he indi iduals’ mo i a ions, ying o go beyond he mos
i ial ques ions.
Concep ual p oblems
In his sec ion, i is necessa y o highligh i s ly, he p oblem wi h espec o
pe sonali y ai s. Du ing a long ime, esea ches ha e sea ched o a se ies o ea u es
o he pe sonali y ha would allow o iden i y he u u e en ep eneu (McClelland,
1961). This concep ion -in hei na owes sense- has been se e ely ques ioned (Ga ne ,
1989). A mo e app op ia e app oach consis s p obably on poin ing ou ha he
indi idual's cha ac e is ics a e one o he condi ioning elemen s, al hough always in
combina ion wi h he en i onmen and he speci ic ci cums ances su ounding he
indi idual (Ga ne , 1985).
P esen ly, due o he poo esul s o e ed by his “ ai s app oach”, psychological
s udies ocus on a iables as he indi idual's pe cep ions and a i udes owa ds he
en ep eneu ial ac i i y. These psychological a iables would be he basic condi ions o
wha we ha e called en ep eneu ial po en ial (K uege and Cas ud, 1993; K uege ,
1993). Howe e , a pe cep ion mo e o less a ou able owa ds he en ep eneu ial
ac i i y will be he esul o indi idual's expe iences and ci cums ances, and how he/she
has in e p e ed and assimila ed hem. This explains why some au ho s ha e ound, o
example ha being he i s -bo n child, ha ing pa en s en ep eneu s, o being a membe
o e hnic mino i ies in luence posi i ely he decision o becoming en ep eneu
(Cáce es, 1999). I would no eally be he ci cums ances hemsel es (being i s -bo n)
which p omo es en ep eneu ship, bu a he he way in which he indi idual assimila es
ha ci cums ance. In ce ain subg oups o he popula ion may a ise a si ua ion ha helps
ha ela ionship (be ween, o example, p imogeni u e and en ep eneu ial p opensi y).
Again, sample selec ion can ha e a decisi e in luence on analysis esul s.
Besides hose subjec i e a iables, we could conside wha K uege and Cas ud
(1993) call “p ecipi a ing e en s”, i.e., hose en i onmen al a iables (economic
oppo uni ies, ins i u ional amewo k…) ha -in addi ion o hei indi ec e ec
h ough pe cep ions and a i udes- exe cise a di ec e ec on he decision o s a ing an
en e p ise in a ce ain momen o ime and no in ano he . In he same way, he concep
o “s a egic windows” (Ha ey and E ans, 1995) ies o show he need o a
coincidence be ween pe sonal cha ac e is ics and en i onmen al ci cums ances o
indi iduals o e ec i ely s a hei en ep eneu ial p ojec . In his way, Bi ley and
5
Wes head (1994) ound an impo an ela ionship among easons o c ea ion and age in
which en ep eneu s s a hei en u e. This is consis en wi h p o essional ca ee
heo y in he sense ha he easons o s a -up change along he di e en phases o he
indi idual’s li e.
Along he same line, i is impo an o poin ou he g ea di e si y exis ing
among ac i e en ep eneu s. As Ga ne s esses (1985), he exis ing di e ences among
en ep eneu s a e p obably highe ha hose be ween en ep eneu s on one side, and non
en ep eneu s on he o he . Thus, s udies ha y o classi y ac i e en ep eneu s in only
wo o h ee ca ego ies may be clea ly inadequa e. Woo e al. (1991) showed ha he
adi ional di ision be ween “c a smen” ( adi ional and imi a o s, p e e ing manual
wo k and dedica ing less ime o s a egic managemen asks) and “oppo unis s”
(inno a i e and dynamic, es less, a en i e o he con inuous exploi a ion o new
oppo uni ies) lacks enough igo . Acco ding o hese au ho s, se e al s udies ha e
de i ed ha ypology using di e en a iables and app oaches, so hey would be
inconsis en , and would e e o di e en eali ies -al hough using he same label o
name hem-.
The e is also an addi ional ques ion o be add essed om he egional
de elopmen policy. I ega ds he p obabili ies o success ha di e en nascen
en ep eneu s ha e. I s impo ance esides in he sca ci y o public unds, so decision-
make s would like o iden i y and suppo only hose en ep eneu ial p ojec s wi h
highe possibili ies o su i al, and wi h a g ea e impac on he egional economy. In
he i s place, i would be necessa y o de ine wha o unde s and as en ep eneu ial
success (San os and Liñán, 2001). In his sense, he a iables used in he li e a u e ange
om he me e en e p ise su i al o i s g ow h and employmen c ea ion (Liñán, 2001).
Howe e , a emp s o p edic en ep eneu ial success ha e no ob ained sa is ac o y
esul s up o now (Coope , 1993). Anyhow, mos p omising esul s use models wi h a
highe le el o abs ac ion, combining economic a iables wi h psychological ones
(Da idsson, 1991) o wi h hose ela i e o he en ep eneu 's p e ious expe ience
(Chandle , 1996).
One can say he e o e, ha he en ep eneu ial ac i i y is no one-dimensional a
all, bu a he i is essen ially complex and dynamic. So, as we ha e poin ed ou , he
easons ha ake he indi idual o he decision o c ea ing an en e p ise a e expec ed o
be di e en in each case. As a consequence, he a iables ha in luence ha decision
can also be di e en o each nascen en ep eneu . Ne e heless, i does no imply ha
any a emp o look o a causal ela ionship is useless, al hough he esul s will be
6
necessa ily modes un il su icien ly wide heo e ical models a e de eloped, as well as
da abases speci ically designed o con as his ype o models.
Re ision o some empi ical analyses
The e a e se e al s udies ha y o examine he ac o s explaining he decision
o become a en ep eneu . Howe e , many o hose s udies su e om some o he
me hodological and concep ual p oblems iden i ied abo e. Those p oblems would
e lec on no signi ican coe icien s, low p edic i e capaci y, o spu ious co ela ions.
In spi e o his, ce ain ele an egula i ies s ill exis .
Howe e , all his li e a u e s udies he ansi ion o sel -employmen in a wide
sense, and no he es ablishmen as an en ep eneu speci ically. Thus, in ha li e a u e,
independen p o essionals, sel -employed pe sons o a me s a e conside ed equal o
indi iduals ha c ea e a new en u e. In ou s udy, we will ocus exclusi ely on hose
people ha decide o become en ep eneu s by c ea ing a new en e p ise, because hey
may ha e a g ea e e ec on he p oduc i e ab ic and, h ough i , on he egional o
local economic de elopmen (San os, 1998).
In he i s place, he posi i e in luence o he income le el on he decision o be
sel -employed is he mos b oadly documen ed. Van P aag and Van Ophem (1995), o
example, ound ha a iable o be he mos impo an de e minan o wha hey call he
“oppo uni ies” o be en ep eneu . I is ob ious ha he c ea ion o an en ep eneu ial
ini ia i e equi es he in es men o esou ces; he e o e he a ailabili y o hem
acili a es he decision. This ela ionship can be ein o ced because a highe income
le el is usually ela ed o highe quali ica ions and social s a us (con ac ne wo ks).
Thus, he indi idual’s pe cep ions o capaci y and sel -con idence may be g ea e .
Ano he in luence equen ly ound e e s o age. Tha ela ionship usually has a
bell shape (Reynolds, 1997). The p obabili y o becoming an en ep eneu ini ially ises
wi h age (up o hi y o hi y i e yea s), o descend g adually and con inually la e .
Speci ically, Reynolds’ s udy ound ha people in he 25-34 age g oup had a p obabili y
o being a nascen en ep eneu h ee imes ha o he o he g oups.
Conside ing now he educa ional le el, i seems o ha e a posi i e e ec on he
decision o c ea e an en e p ise. Wol e s (2000) ound ha he en ep eneu ial
p opensi y is highe among hose indi iduals wi h uni e si y educa ion. O he s udies
(E ans and Leigh on, 1989; Blanch lowe and Meye , 1994) also ind his ela ionship
7
s a is ically signi ican , wi h he e ec inc easing as he le el o s udies ises, eaching
hei maximum o uni e si y g adua es.
O he posi i e ela ionships ha e been epea edly ound in he empi ical
li e a u e abou en e p ise c ea ion (S o ey, 1994): unemploymen si ua ion, a ailabili y
o weal h, and p e ious expe ience. Rega ding unemploymen , i is usually conside ed
ha he loss o a p e ious employmen (o no inding a sa is ying one) ac s as a
“p ecipi a ing e en ” o he decision o become an en ep eneu . A ailabili y o weal h
(ei he he amily’s o an inhe i ance) would ac simila ly as he income le el, allowing
he exploi a ion o a business oppo uni y ha has been disco e ed. P e ious
expe ience, inally, allows he indi idual knowledge o he ac i i y o be de eloped,
making his/he sel -e icacy pe cep ion ise ( eeling o being able o success ully ca y
ou ha ask). Besides, expe ience will p obable help de elop con ac ne wo ks, e y
use ul o business success.
Among he analyzed s udies abou he cha ac e is ics o nascen en ep eneu s,
he one by Reynolds (1997) is especially ele an , al hough his de ini ion o nascen
en ep eneu -as he o he s udies poin ed ou - e e s only o becoming sel -employed.
Tha analysis is based on panel da a and uses a model o logis ic eg ession, ge ing e y
in e es ing esul s ha seem o con i m he exis ence o di e en “ ypes” o nascen
en ep eneu s. The e o e, Reynolds di ides he sample in o subg oups. Thus, be ween
25 and 34 yea s old he p esence o nascen en ep eneu s mo e han iples ha o he
emaining age g oups. Besides, wi hin his subpopula ion, sel -employed, unemployed
and s uden s a e hose showing he highes nascen a e. In his g oup, employees only
p esen a high en ep eneu ial inclina ion i hey ha e an educa ional le el abo e
seconda y school. In he o he age g oups he a e o nascen en ep eneu s is mo e
educed. Anyhow, sel -employmen s ands ou wi hin he 35-54 yea g oup; and
belonging o a household o h ee o mo e adul s s ands ou wi hin he 18-24 yea g oup.
Wi h espec o i s p edic i e capaci y, he pe cen age o co ec ly classi ied
cases in ha s udy is abou 75%. Ne e heless, i is necessa y o keep in mind ha i
uses samples whe e hal he cases co espond o nascen en ep eneu s, so ha he null
model ( ha p edic s ha nobody is nascen en ep eneu ) would o e 50% o co ec
cases. On he o he hand, he numbe o nascen s is e y small, so he esul s should be
aken wi h cau ion.
In he ollowing sec ion we desc ibe he empi ical pa o ou s udy. Wo king
wi h a panel o households we a e able o minimize some o he p oblems ound in o he
14
Las ly, he analysis shows ha being he e e ence pe son's son (in a wide sense,
including na u al, adop ed and cohabi an ’s child en) diminishes he p obabili y o
becoming an en ep eneu . In his line, Reynolds’ s udy did no ind he numbe o
child en o adul s li ing in he household o be signi ican (excep in he age g oup om
18 o 24 yea s). Howe e , ou s udy shows ha he posi ion occupied by he indi idual
in he household is signi ican o he ansi ion o en ep eneu ship. I may be ha
indi iduals, be o e hei ansi ion o en ep eneu ship, p e e o se le down in hei
own household (so hey would become he e e ence pe son) and o acqui e ce ain
wo k expe ience.
Rega ding he con inuous a iables, in o de o in e p e mo e app op ia ely he
coe icien s o he model, he ma ginal e ec s ha e been calcula ed. In he logi model,
and in he case o con inuous a iables, he exp ession o be used is:
[ ]
( ) 1 ( )
E y F F
β β β
∂ 
  ′ ′
= −
∂
xx x
x,
which will a y wi h he alues o x. Two al e na i es exis o his analysis. Fi s ly, we
could e alua e ha exp ession aking he sample means as x. Secondly, he ma ginal
e ec s may be e alua ed on each obse a ion and he mean o all ma ginal singula
e ec s calcula ed a e wa ds.
I we use he i s o hose al e na i es o age, he ma ginal e ec o an
addi ional yea diminishes he p obabili y o becoming en ep eneu in 0.00472. Using
he second al e na i e, Figu e 1 shows he mean ma ginal e ec o each obse ed alue
o age. In his way, he a ia ion in he ma ginal e ec when age changes may be
obse ed.
Al hough he ma ginal e ec is always nega i e, i inc eases in absolu e alue
un il app oxima ely 30 yea s o age, and diminishes lineally in absolu e alue om ha
age. This means ha o he younges indi iduals, he p obabili y o ansi ion o
en ep eneu ship (i all o he ci cums ances emain cons an ) dec eases as e e e y
yea . Howe e , abo e hi y yea s o age, he p obabili y dec eases mo e and mo e
slowly (again, i all he o he ci cums ances emain cons an ).
Howe e , when we ep esen he obse ed p obabili y ( he ela i e equency) o
becoming en ep eneu o each age, he g aph is bell-shaped, consis en ly wi h o he
s udies. This does no imply any con adic ion, because o he ce e is pa ibus
hypo hesis assumed. In his sense, du ing he i s yea s o wo king li e, “quali ica ions”
and “oppo uni ies” o he indi idual (educa ion, highe le el o income, expe ience,

15
and so on) a e imp o ing signi ican ly, making he o al p obabili y o becoming
en ep eneu ise. On he con a y, abo e hi y yea s o age, hese o he ci cums ances
end o s abilize. I is hen when he nega i e e ec o age begins o be appa en , hus
making he o e all obse ed p obabili y dec ease.
Figu e 1: Ma ginal E ec o Age
-0,0045
-0,0040
-0,0035
-0,0030
-0,0025
-0,0020
-0,0015
-0,0010
-0,0005
0,0000
15 25 35 45 55 65
Change P ob.
The ma ginal e ec o income, on i s pa , is ela i ely small. A housand
addi ional ma ks on he a e age indi idual ha dly inc ease his/he p obabili y o
becoming en ep eneu by 0.01630. The g aph in he Appendix shows he ma ginal
e ec by income in e als. A sligh ly g owing end may be app ecia ed (as income
inc eases, he p obabili y o ansi ion o en ep eneu ship ises), bu his ela ionship is
e y weak.
I may also be in e es ing o show he ma ginal e ec s o he dicho omic
a iables ( ha we ha e deno ed by d). In his case, he ma ginal e ec would be:
( 1 , 1) ( 1 , 0)
P Y d P Y d
= = − = =
x x ,
whi h x usually ob ained using sample means o all o he explana o y a iables. Table 2
shows he ma ginal e ec s o he dicho omic a iables ha we e signi ican .
The i s hing o highligh is he huge e ec ha ha ing p e ious expe ience as
an en ep eneu has on ansi ion. Howe e , his in o ma ion should be conside ed
cau iously, as he co esponding coe icien was no signi ican (possibly due o he
educed numbe o obse a ions). The si ua ion o being sel -employed bu no
en ep eneu also has a g ea ma ginal e ec (0.55269). A hi d g oup o a iables wi h
a high e ec would include: o be unemployed, o be a a me , o be a con ibu ing
16
amily wo ke , o wo king in a small company (up o 20 employees). In all hese cases,
he p obabili y o su e ing a ansi ion o en ep eneu ship ises conside ably (be ween
0.25 and 0.40). The emaining a iables ha e ma ginal e ec s below 0.15. Among he
si ua ions un a ou able o en ep eneu ship (nega i e ma ginal p obabili y), he e a e
ha o being app en ice, being son o he e e ence pe son, and wo king in social
se ices.
Table 2. Ma ginal e ec in ca ego ical a iables
β
ββ
β Mean Change P ob.
ES4 1,75268 0,06301 0,35727
ES567 0,46604 0,24536 0,07032
WORK1 1,76240 0,00487 0,37142
WORK2 2,66152 0,10807 0,55269
WORK3 1,64049 0,01126 0,33992
WORK6 -1,53335 0,02770 -0,13036
NUM12 9,25707 0,05449 0,89070
SIZE1 1,60274 0,24323 0,28394
SIZE2 0,48965 0,14155 0,07652
PERIODO2
-0,23929 0,49924 -0,03342
EXTRANJ -0,31018 0,20244 -0,04072
SECTOR6 0,72400 0,10928 0,12054
SECTOR9 -0,88844 0,15038 -0,10070
EDUC3 0,41543 0,62618 0,05607
EDUC4 0,59293 0,12116 0,09545
RELAC3 -0,69114 0,12359 -0,08093
I can be said, hen, ha he highes ma ginal e ec s a e concen a ed on only a
ew a iables. Thus, p o essional si ua ion and ac i i y sec o a e especially ele an ,
wi h all e ec s abo e 10%. The e o e, he kind o wo k expe iences (and no only he
du a ion o hose expe iences) would ha e a subs an ial e ec on he p obabili y o
becoming an en ep eneu .
4. Conclusions
In his pape we ha e ied o analyze he cha ac e is ics o nascen en ep eneu s
in Ge many, which may be ep esen a i e o Cen al Eu ope. To do so, we d aw on
p e ious wo k ha poin o a ce ain sociocul u al homogenei y in he di e en
coun ies o ha a ea. Thus, Reynolds (2000) ound ha he p opo ion o nascen
en ep eneu s in he cen e and no h o he con inen is qui e simila . On he o he hand,
Wol e s’ (2000) esul s o he Du ch case con i m ou s in many aspec s.
In he i s place, a se ies o impo an me hodological and also concep ual
ques ions ha e been deal wi h. Rega ding he o me , some p ac ices ha a e common
17
in he empi ical s udies analyzed may cause an impo an bias in he esul s. In
pa icula , on he one hand, i is essen ial ha he explana o y a iables a e measu ed
be o e he indi idual becomes an en ep eneu , and no a e wa ds, no e en wi h
e ospec i e ques ions. The e o e, i is usually necessa y he use o panel da a. On he
o he hand, in he elabo a ion and manipula ion o he ques ionnai e a g ea ca e is
needed, specially when measu ing non angible a iables such us in e iewee’s
mo i a ions, pe cep ions o a i udes. Finally, he non esponse a e should be aken in o
accoun , because i may also cause biases in he sample composi ion.
As o he concep ual aspec s, we ha e adop ed a iew o en ep eneu ship as a
p ocess, in line wi h he mos ecen ends in his ield. This app oach conside s he
en ep eneu ial ac i i y as a esul o he combina ion o pe sonal (indi idual's
pe cep ions and a i udes, which a e in u n a ec ed by he pe son’s backg ound) and
en i onmen al ac o s (no only economic, bu also amily and social en i onmen s).
The e o e, i is p obable ha a g ea di e si y o ypes o en ep eneu s exis s, wi h
di e en mo i a ions and objec i es. Fac o s ha lead o en e p ise c ea ion may a y
o each social g oup. Ne e heless, o he ex en ha en i onmen al ci cums ances a e
simila , and ha ce ain sha ed sociocul u al ea u es exis , i may be expec ed ha
ce ain a iables in luence he whole g oup o nascen en ep eneu s.
In his pape , we ha e wo ked wi h a e y wide da a panel including he whole
Ge man popula ion, which has allowed o a oid many o he me hodological p oblems
indica ed. Ne e heless, ou da abase did no include ques ions abou pe cep ions,
a i udes and mo i a ions o he en ep eneu , which has undoub edly been an impo an
limi a ion.
The esul s ob ained a e, conside ed as a whole, qui e sa is ac o y. In he i s
place, hey ha e con i med a se ies o causal ela ionships ha had been al eady ound
in p e ious s udies, and ha e also iden i ied o he ela ionships. Secondly, we ha e
ob ained a easonable p edic i e capaci y, since ou model co ec ly classi ies 89.4% o
he sample, and in pa icula , i classi ies 56.5% o nascen en ep eneu s co ec ly.
Based on hese esul s, we can say ha he ollowing pe sonal ac o s posi i ely a ec
he decision o c ea e an en e p ise: a highe income le el, highe educa ional le el,
lowe age, no being he household e e ence pe son's son ( hose s ill li ing wi h hei
pa en s a e less likely o become en ep eneu s), and no being a o eigne . Rega ding
p o essional ea u es, he posi i e e ec is de i ed om ei he being unemployed, o -i
wo king- doing so in small companies, as sel -employed o wi h a high deg ee o
au onomy, and also doing i in he hos el y and ade sec o .
18
In u u e, howe e , i is necessa y o ad ance in he design o new esea ch o
allow a mo e p ecise iden i ica ion o he ac o s causing he decision o c ea e an
en e p ise wi hin he di e en social g oups. In he i s place, i is ou in en ion o
di ide his sample in mo e homogeneous subg oups, since i s size allows i . Repea ing
he analysis we ha e ca ied ou he e o each one o hose subg oups could allow
iden i ying he speci ic ac o s ha a ec en e p ise c ea ion in di e en social g oups.
Secondly, ano he line o esea ch we in end o con inue would consis on he
compa ison o hese esul s wi h hose co esponding o o he coun ies, bo h Eu opean
and o he wise. To do so, we will use as a as possible he in o ma ion a ailable in he
Panel Compa abili y P ojec .
Las ly, we s ess again he need o ha e much mo e speci ic in o ma ion ela i e
o he pe sonal and psychological ea u es o indi iduals, o be able o alida e he
di e en heo ies abou en e p ise c ea ion and en ep eneu ship. I is mo e and mo e
u gen o build a su icien ly wide da abase, bo h in sample size and in ime pe iod
co e ed, and ha i is speci ically in ended o he measu emen o en ep eneu ship.
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Appendix
Ma ginal E ec by le els o Income
0,0000
0,0020
0,0040
0,0060
0,0080
0,0100
0,0120
0,000 2,000 4,000 6,000 8,000 10,000
Change P ob.
Sample dis ibu ion by yea
Yea No. Indi iduals % o sample
1984 267 8,13
1985 226 6,88
1986 238 7,25
1987 204 6,21
1988 180 5,48
1989 217 6,61
1990 313 9,53
1991 272 8,28
1992 271 8,25
1993 340 10,35
1994 347 10,56
1995 410 12,48
To al 3285 100,00
21
Simple means o he a iables used in he empi ical analysis
Va iable Mean Va iable Mean
EMPRESAR 0,1970 SXV 0,5209
INGMIL 2,2782 SXF 0,4791
EDAD 41,3598
NACIONAL
0,7976
ES2 0,0889 EXTRANJ 0,2024
ES3 0,6027 SECTOR1 0,0146
ES4 0,0630 SECTOR3 0,1963
ES567 0,2454 SECTOR5 0,0548
WORK1 0,0049 SECTOR6 0,1093
WORK2 0,1081 SECTOR7 0,0362
WORK3 0,0113 SECTOR8 0,0542
WORK4 0,2350 SECTOR9 0,1504
WORK5 0,2304 SECTO240 0,0338
WORK6 0,0277
NOMINUSV
0,9336
WORK7 0,0387 MINUSGRA 0,0664
NUM0
0,9455 EDUC1 0,0505
NUM12
0,0545 EDUC2 0,2021
SIZE1 0,2432 EDUC3 0,6262
SIZE2 0,1416 EDUC4 0,1212
SIZE3 0,1306 RELAC1 0,5111
SIZE4 0,1406 RELAC2 0,3546
PERIODO1 0,5008 RELAC3 0,1236
PERIODO2 0,4992 RELAC4 0,0107
C2 0,3817
C1 0,6183