Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/58563
Authors: 
Lofstrom, Magnus
Bates, Timothy
Parker, Simon C.
Year of Publication: 
2011
Series/Report no.: 
Discussion Paper series, Forschungsinstitut zur Zukunft der Arbeit 6103
Abstract: 
Drivers of entrepreneurial entry are investigated in this study by examining how entry into small-business ownership is shaped by industry-specific constraints. The human- and financial-capital endowments of potential entrepreneurs entering firms in various industries are shown to differ profoundly, depending on the type of venture entered. The educational credentials of highly educated potential entrepreneurs, in particular, predict avoidance of small-firm ownership in some industries as well as attraction to others. Recognizing that individuals choose an industry sector jointly with their decision to enter entrepreneurship, we find that the conventional practice of conflating different industry types in empirical analyses of transitions to entrepreneurship generates misleading findings about the determinants of entrepreneurship.
Subjects: 
entrepreneurship
self-employment
capital constraints
transitions
entry barriers
business start-ups
JEL: 
J24
L26
M13
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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