This paper analyzes the medium-term growth performance of firms that exclusively received start-up assistance from programs administered by the Deutsche Ausgleichsbank (DtA), a state owned bank, within two years after start-up. I apply a parametric selection approach that controls for two potential sources of self selection (receipt of assistance, complete interview data). The empirical ana-lysis shows that firms receiving assistance perform better in terms of employment growth over a six year period.

Keywords

New Firms, Employment Growth, Evaluation, Selection Bias, Bivariate and Simultaneous Probit