sons such as illness makes restart more unlikely, while OTHERREAS, i.e., unspecified
other reasons, is insignificant, thus having no impact. If an argument within the entre-
preneurial team was a reason for business closure, this seems - for logical reasons - to
encourage entrepreneurs to venture anew; the effect of QUARREL is significantly positive.
Table 3: Probit estimation results
|
Independent variable: Occurrence of restart (yes/no) |
Specification I |
Specification II | ||
|
Marginal effect a |
P-value | |||
|
Marginal effect a |
P-value | |||
|
Main covariates I: Closure reasons b c | ||||
|
DEBTS |
-0,082 ** |
0,041 |
-0,061 |
0,143 |
|
NOTWORTH |
0,007 |
0,859 |
-0,001 |
0,988 |
|
ILLIQUIDITY |
0,012 |
0,723 |
0,027 |
0,463 |
|
WAGEEMPL |
0,036 |
0,634 |
0,036 |
0,639 |
|
RETIRE |
-0,247 *** |
0,000 |
-0,254 *** |
0,000 |
|
PRIVATE |
-0,106 ** |
0,044 |
-0,107 ** |
0,040 |
|
OTHERREAS |
0,038 |
0,374 |
0,038 |
0,372 |
|
QUARREL____________________________ |
0,193 *** |
0,000 |
0,192 *** |
0,000 |
|
Main covariates II: Bearer of financial losses b | ||||
|
Sharehol |
- |
- |
-0,017 |
0,645 |
|
BANKS |
- |
- |
-0,112 ** |
0,013 |
|
Otherstake________________________ |
- |
- |
0,024_________ |
0,573 |
|
Control variables | ||||
|
CAPITAL |
0,000 |
0,482 |
0,000 |
0,412 |
|
CAPITALM |
-0,010 |
0,771 |
-0,008 |
0,830 |
|
TEAM |
0,134 *** |
0,000 |
0,135 *** |
0,000 |
|
TEAMM |
0,005 |
0,946 |
-0,005 |
0,941 |
|
LIMITED |
0,161 *** |
0,000 |
0,158 *** |
0,000 |
|
SIZE |
0,003 *** |
0,001 |
0,003 *** |
0,001 |
|
SIZEM |
0,043 |
0,443 |
0,043 |
0,433 |
|
AGE |
-0,023 *** |
0,001 |
-0,022 *** |
0,001 |
|
AGEM |
-0,144 |
0,129 |
-0,154 |
0,108 |
|
EAST |
-0,037 |
0,237 |
-0,035 |
0,264 |
|
HTIND |
-0,006 |
0,961 |
-0,008 |
0,943 |
|
OTHERIND |
0,020 |
0,749 |
0,025 |
0,681 |
|
TECHSERV |
0,230 *** |
0,001 |
0,232 *** |
0,001 |
|
OTHERSERV |
0,131 * |
0,054 |
0,132 * |
0,051 |
|
CONSTRUCT |
0,107 ** |
0,034 |
0,111 ** |
0,027 |
|
TRADE______________________________ |
0,080 *_______ |
0,074 |
0,083 *________ |
0,063 |
|
# of observations |
853 |
853 | ||
|
Wald χ2 (df) |
146.820 (20) |
159.330 (27) | ||
|
Pseudo R2 |
0.161_________ |
0.168_________ | ||
a Average marginal effect.
b No reference category because multiple statements were possible.
c Actually, there is another closure reason indicator available namely “change into a different self-employment
business”. Since this indicator would completely determine the outcome in the regression, 13 observations
which exclusively refer to this closure reason are not used.
* Significant at the 10 % level. ** Significant at the 5 % level. *** Significant at the 1 % level.
Note: Both indictors variance inflation factor and condition number do not indicate a multicollinearity problem.
Source: Own regression based on the ZEW Entrepreneurship Study and the ZEW Foundation Panel.
More intriguing information
1. Economie de l’entrepreneur faits et théories (The economics of entrepreneur facts and theories)2. The magnitude and Cyclical Behavior of Financial Market Frictions
3. Using Surveys Effectively: What are Impact Surveys?
4. Business Networks and Performance: A Spatial Approach
5. The Integration Order of Vector Autoregressive Processes
6. The name is absent
7. NATURAL RESOURCE SUPPLY CONSTRAINTS AND REGIONAL ECONOMIC ANALYSIS: A COMPUTABLE GENERAL EQUILIBRIUM APPROACH
8. Solidaristic Wage Bargaining
9. Epistemology and conceptual resources for the development of learning technologies
10. Towards a Strategy for Improving Agricultural Inputs Markets in Africa