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Offering unemployed individuals a subsidy to become self-employed is a widespread active labor market policy strategy. Previous studies have illustrated its high effectiveness to help participants escaping unemployment and improving their labor market prospects compared to other unemployed individuals. However, the examination of start-up subsidies from a business perspective has only received little attention to date. Using a new dataset based on a survey allows us to compare subsidized start-ups out of unemployment with regular business founders, with respect to not only personal characteristics but also business outcomes. The results indicate that previously unemployed entrepreneurs face disadvantages in variables correlated with entrepreneurial ability and access to capital. Nineteen months after start-up, the subsidized businesses experience higher survival, but lag behind regular business founders in terms of income, business growth and innovation. Moreover, we show that expected deadweight effects related to start-up subsidies occur on a (much) lower scale than usually assumed.
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(2015)
This explorative study gives a descriptive overview of what organizations do and experience when they say they practice design thinking. It looks at how the concept has been appropriated in organizations and also describes patterns of design thinking adoption. The authors use a mixed-method research design fed by two sources: questionnaire data and semi-structured personal expert interviews. The study proceeds in six parts: (1) design thinking¹s entry points into organizations; (2) understandings of the descriptor; (3) its fields of application and organizational localization; (4) its perceived impact; (5) reasons for its discontinuation or failure; and (6) attempts to measure its success. In conclusion the report challenges managers to be more conscious of their current design thinking practice. The authors suggest a co-evolution of the concept¹s introduction with innovation capability building and the respective changes in leadership approaches. It is argued that this might help in unfolding design thinking¹s hidden potentials as well as preventing unintended side-effects such as discontented teams or the dwindling authority of managers.