Abstract

The World Economic Forum in Davos suggested that promoting entrepreneurship could be a solution to the problem of youth employment, which is a serious issue with 75 million young people out of work around the world. The entrepreneurial decisions of young people are especially important in regions where economic opportunities are restricted and people choose to move from that region. Two of such regions are East Germany and Northern Cyprus. In this article, the authors are interested in analyzing entrepreneurial tendencies of business and economics students from Northern Cyprus and East Germany in order to provide context-specific knowledge. For this purpose, a survey was conducted at the Technische Universität Dresden and the Near East University with n = 293 participants in 2016. The results were analyzed by using a logistic regression analysis. The study includes with policy implications on the transformation towards entrepreneurial universities to meet the different needs of small and poor cities.

Highlights

  • Germans believe that the German education system does not teach them the necessary skills for becoming entrepreneurially active

  • It has been empirically observed that the problem of regional inequality is that of a core-periphery issue triggered by agglomeration economies, where East Germany seems to have a plethora of small and poor cities that make its overall economic performance worse than West Germany [2]

  • The surveys were conducted in 2016 during a microeconomics lecture, which is an obligatory course for undergraduate students enrolled in the Faculty of Business and Economics of TU Dresden, a public university in Dresden, Germany; and during an introductory business lecture, which is an obligatory course for undergraduate students enrolled in the Faculty of Economics and Administrative Sciences of Near East University, a private university in Nicosia, Northern Cyprus

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Summary

Introduction

Germans believe that the German education system does not teach them the necessary skills for becoming entrepreneurially active. This was the result of Amway’s Global Entrepreneurship Report in 2018 [1]. It has been empirically observed that the problem of regional inequality is that of a core-periphery issue triggered by agglomeration economies, where East Germany seems to have a plethora of small and poor cities that make its overall economic performance worse than West Germany [2]. As suggested by [2], there are still small and poor cities in Germany (mainly in the former East), which is the main explanation of why there is a divergence between the regions of Germany; a way out of this economic weaknesses can be entrepreneurship. Entrepreneurship support conditions for investing in these regions need to be supported by data analysis with respect to the future, since the case of the former East Germany is a special case for German entrepreneurship

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