The Quality of Entrepreneurs

Hans Hvide

No 4979, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: What determines the quality of entrepreneurs? To address this question, the paper proposes a simple model of the interaction between individual workers? decision to become entrepreneurs and established firms? effort to keep their best workers and ideas. The main prediction from the model is that larger firms produce entrepreneurs of higher quality than smaller firms. I also find that, making firm size endogenous, stronger property rights protection makes the optimal firm size larger. Using novel and unique Norwegian data, I obtain results that are consistent with previous employer size exerting a noticeable influence on entrepreneurial performance. For example, increasing previous employer size from the 25 percent quartile to the 75 percent quartile increases yearly operating returns on assets by 6 percentage points.

Keywords: entrepreneurship; Ipp; Start-ups; Property rights; Private benefits (search for similar items in EconPapers)
JEL-codes: G39 J33 J41 J62 K00 L24 L25 M52 M54 (search for similar items in EconPapers)
Date: 2005-03
New Economics Papers: this item is included in nep-ent, nep-fin, nep-ino and nep-law
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

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Related works:
Journal Article: The Quality of Entrepreneurs (2009)
Journal Article: The Quality of Entrepreneurs (2009)
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