Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/86182
Authors: 
Aidis, Ruta
van Praag, Mirjam
Year of Publication: 
2004
Series/Report no.: 
Tinbergen Institute Discussion Paper 04-105/3
Abstract: 
Existing studies show a positive relationship between entrepreneurs' business performance and their conventional human capital as measured by previous business experience and formal education. In this paper, we explore whether illegal entrepreneurship experience (IEE), an unconventional form of human capital, is related to the performance and motivation of entrepreneurs operating legal businesses in a transition context. Using regression techniques on a sample of 399 private business owners in Lithuania, we find that, in general, IEE is significantly and positively associated with subjective measures of business motivation. Moreover, younger entrepreneurs benefit from their IEE in terms of business performance, indicating that they have been more successful than older entrepreneurs in transferring their IEE to a market oriented setting. In addition, IEE and business performance are positively related for entrepreneurs who started completely new legal businesses. Thus, our research partially supports the notion that prior experience in the black or gray market may signal and provide valuable human capital for legal enterprising.
Subjects: 
entrepreneurship
human capital
illegal entrepreneurship
transition economy
JEL: 
J21
J23
J24
J49
L25
M13
O17
P31
Document Type: 
Working Paper

Files in This Item:
File
Size
174.67 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.