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dc.contributor.authorParker, Simon C.en_US
dc.contributor.authorvan Praag, C. Mirjamen_US
dc.description.abstractWe analyse the decision to become an entrepreneur by either taking over an established business or starting a new venture from scratch. A model is developed which predicts how several individual- and firm-specific characteristics influence entrepreneurs'entry mode. The new venture creation mode is associated with higher levels of schooling and wealth, whereas managerial experience, new venture start-up capital requirements and risk promote the takeover mode. Entrepreneurs whose parents run a family firm are predicted to invest the least in schooling, since schooling reduces search costs and these individuals have the lowest probability of needing to search for a business opportunity outside their family. A sample of data on entrepreneurs from the Netherlands provides broad support for the theory; implications for policy-makers concerned about the survival of family firms lacking within-family successors are discussed.en_US
dc.publisher|aMax-Planck-Inst. für Ökonomik|cJenaen_US
dc.relation.ispartofseries|aPapers on entrepreneurship, growth and public policy|x2606en_US
dc.titleThe entrepreneur's mode of entry: business takeover or new venture start?en_US
dc.type|aWorking Paperen_US

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