%0 Report
        %A Block, Jörn
%A Kohn, Karsten
%A Miller, Danny
%A Ullrich, Katrin
        %T Necessity Entrepreneurship and Competitive Strategy
        %D 2014
        %8 2014 May
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 8219
        %U https://www.iza.org/publications/dp8219
        %X Many start-ups chose to compete with incumbent firms using one of two generic strategies: cost leadership or differentiation. Our study demonstrates how this choice depends on whether the startup was founded out of necessity. Our results, based on a representative data set of 4,568 German start-ups, show that necessity entrepreneurs are more likely than other entrepreneurs to pursue a cost leadership strategy, and less likely to pursue a differentiation strategy. Decomposition analyses further show that up to half of the difference in choice of strategy can be attributed to distinct endowments of human capital, socio-economic attributes, and start-up project characteristics that correlate with necessity entrepreneurship.
        %K competitive strategy
%K new venture strategy
%K necessity entrepreneurship
%K product differentiation
%K decomposition analysis
%K cost leadership