This paper empirically analyzes whether the character-based approach, which is based on the personality structure and the human capital of business founders, allows prediction of entrepreneurial success. A unique data set is used consisting of 414 previously unemployed persons whose personal...

The in°uence of risk aversion on the decision to become self-employed is a much discussed topic in the entrepreneurial literature. Conventional wisdom asserts that being an entrepreneur means making risky decisions in uncertain environments; hence more risk-averse individuals are less likely to...

Die Existenzgründungsförderung für Arbeitslose gewinnt als arbeitsmarktpolitisches Instrument in Deutschland zunehmend an Bedeutung. Mit der Einführung des Existenzgründungszuschusses (ExGZ) zum 1.1.2003 steht gründungswilligen Arbeitslosen - neben dem Überbrückungsgeld (ÜG) - nun ein...

We analyze the incentive mechanism of individual micro-lending contracts and we compare its key factors with those of joint-liability loan contracts. Using our data set, we firstly show that in the individual contract there are three elements, the demand for non-conventional collateral, a...

In Dictator Game experiments where the information status of the recipient varies we find that a certain type of donator tends to reduce his offer when the recipient has incomplete information about the pie size. This result provides new evidence on those approaches on altruism, which assume...

How can a principal (an agent) ensure that an agent (a principal) will work (pay up), if payment (work) precedes work (payment)? When a banknote is torn in two, each part is by itself worthless. A principal can pre-commit to payment-on-delivery, by tearing a banknote and giving the agent the...

In Dictator Game experiments where the information status of the participants varies we find that a certain type of proposer tends to reduce his offers when the recipient has incomplete information about the pie size. We also find that a certain type of recipient tends to reject too small offers...

We empirically examine the efficacy of various incentives of microlending contracts such as joint-liability or group access to future loans. We find that joint liability induces a group formation of low risk borrowers. Furthermore, the incentive system leads to peer measures between the...

For many people "solidarity" has become a meaningless word used in slogans - too often used without leading to any economic consequences. We show in this paper conditions under which solidarity can be a powerful instrument. In a solidary action, an individual in a group contributes to a series...

Models to the issue of altruism which rely on externalities of well-being are rarely used explicitly. In this paper we compare such utility-based approaches with the standard approach on altruism which is based on externalities of income. Testable differences of both types of models are derived...