Xi, Guoqian Block, Jörn Lasch, Frank Robert, Frank Thurik, Roy
IZA Discussion Papers No. 9949
Institute for the Study of Labor (IZA), Bonn
Our paper investigates how the type of work experience gained from prior paid employment influences the path to entrepreneurship. We distinguish between two distinct entrepreneurship entry modes: business takeover and new venture start-up. Using a large and rich French data set, we find that small firm experience increases the likelihood for business takeover, whereas management and same sector experience both increase the likelihood for new ventures. Our findings are relevant for policymakers aiming to improve the business transfer process.
entrepreneurship entry mode business takeover new venture start-up work experience