The start-up grant in in Brandenburg : a regional analysis

Abstract

"In the study, the effectivity of the start-up grant for the subsidized persons setting up their own businesses in the Federal State of Brandenburg is examined for the first time on behalf of the Chamber of Industry and Commerce of Cottbus. The descriptive analysis shows that, 19 months after the business was set up, 85% of the subsidized businesses were still involved in the market. This survival quota is slightly higher than in the other federal states in the eastern part of Germany (84%) and markedly higher than in western Germany (78%). In respect to labour market integration (in self-employment or dependent employment), participants (both male and female) show with 90% a clearly higher integration rate than non-participants (roughly 60%) and also achieve a higher income. Subsidized start-ups in Brandenburg come about overproportionally in the construction industry and handicrafts and can be characterised both as emergency and opportunity start-ups. When additional jobs are taken into account, the balance of those subsidized in Brandenburg turns out to be somewhat worse than for the reference groups. The majority of those formerly subsidized were working on their own 19 months after the start-up began but only about 18% employed at least one member of staff. At over 30% this quota is clearly higher in the remaining parts of Germany. Being subsidized by the start-up subsidy significantly increases the chances of the participants of employment and prevents, or at least reduces, their risk of becoming unemployed. As far as regional differences are concerned, it can be noted that in particular the participants in the eastern region of Germany (and here especially Brandenburg) profit particularly from participation on account of the lack of alternatives in dependent employment. However the additional employment effects caused by the subsidized start-ups 19 months after the start-up took place are limited." (Authors' abstract, IAB-Doku)

Cite article

Caliendo, M., Künn, S. & Wießner, F. (2012): Der Gründungszuschuss in Brandenburg. Eine regionale Analyse. (IZA research report 48), Bonn, 46 p.