Foundation and Development Support for Business Start-ups and Small Enterprises in Germany
The foundation of a business illustrates the first success, as a significant portion of those attempts to start a business fail (Gelderen et al., 2006). Business startups and new enterprises are, however, confronted with a multitude of different challenges and problems due to limited resources, insecurities, risks and deficiencies such as missing know-how and experience (Achleitner & Engel, 2001; Dowling & Drumm, 2003). Technology-oriented start-ups in particular have to cope with challenges that result from their innovative character (Nathusius, 2001) and a higher capital demand. To alleviate some of those problems, start-ups and new enterprises can use services and support offered by a variety of organisations and networks. The services and support activities cover variety areas such as education, supply of office space and capital, business plan competitions and coordination of networking events and other awards. These types of activities have a positive influence on the foundation, development and sustainment of new enterprises and small businesses that has been confirmed in the relevant literature (e.g. Gottschalk et al., 2007, Voigt et al, 2005). However, the existing studies into this topic are sparse and have generally taken a narrow scope by examining a single type of support organisation, for example Maggi (2001) examined technology and foundation centres in North Rhine-Westphalia. Schulte (2002) compared foundation centres in Germany (Ruhr) and the Netherlands (Utrecht) to analyse whether political expectations could be met. Achleitner and Engel (2003) conducted a survey in 2000 with 65 business incubators (the provision of office or workshop space for start-ups) in Germany.
KeywordsVenture Capital Support Organisation Support Activity Small Enterprise Economic Organisation
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