Ex-Nokians Eagerly Became Entrepreneurs and Business Angels: Nokia Experience Fueled Rapid Growth of Startups’ Turnovers

Petri Rouvinen, Dan Breznitz and Mika Pajarinen

No 158, ETLA Brief from The Research Institute of the Finnish Economy

Abstract: Abstract This brief examines entrepreneurship and business angel activity in Finland following the challenges Nokia’s mobile telephony business faced in 2008–2014. It compares former Nokia employees with individuals who left other large high-tech companies in Finland, using comprehensive register-based data at Statistics Finland. The study analyzes both the propensities to become entrepreneurs and business angels, and the subsequent survival and growth of their ventures. A significant 8.27% of those who left Nokia became entrepreneurs or business angels. Former Nokia employees were more than twice as likely to become startup entrepreneurs compared to the control group. The results indicate that Nokia experience negatively affects entrepreneurial survival but positively influences firm growth. In terms of revenue, startups founded by former Nokia employees grew an average of 16% faster than the control group. When focusing solely on companies founded by individuals with prior innovation roles, this growth rate was an average of 50% faster than the control group.

Keywords: Nokia; Entrepreneurship; Business Angels; Startups (search for similar items in EconPapers)
JEL-codes: J63 L10 L26 O31 (search for similar items in EconPapers)
Pages: 14 pages
Date: 2025-04-22
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