Entrepreneurs’ Perception of Social Environment and its Influence on Growth Expectations

Abstract

Other than after the 1966/67 recession there has not been any autonomous or accelerating upswing in West German business after the 1975 recession. Private investment activities, in particular, lacked momentum despite the government programmes to step up business. What is the reason for this disappointing course of business? Is it caused exclusively by objective facts — such as perhaps lower profit margins, greater pressure of international competition, signs of saturation in important fields of consumer goods — or do extra-economic factors play a decisive role, as for instance, the general pessimism about economic growth, socio-political uncertainty or restriction felt as to the entrepreneurial scope, etc.?