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In 2006 the German government introduced the “new start-up subsidy” (“Gründungszuschuss”) to support unemployed individuals to become self-employed. The implementation of this program replaced two earlier programs, i.e., the bridging allowance (“Überbrückungsgeld”) and the start-up subsidy (“Existenzgründungszuschuss”). Evaluations of the latter two programs within the Hartz-Evaluation and the IZA research project Long-Run Effects of Start-Up Subsidies (see below) showed that they were quite successful. The current project aims at evaluating the new start-up subsidy and is therefore a consistent extension of the research on start-up subsidies in Germany. We adopt a holistic evaluation approach, comparing the labor market outcomes of subsidized business founders and a control group of other unemployed individuals on the one hand, and the performance of subsidized businesses to unsubsidized start-ups on the other. Furthermore, we survey supported entrepreneurs right after they are starting their business, allowing an assessment of the dynamic process during the founding period.
