Economics at your fingertips  

Entrepreneurial experience and firm exit over the business cycle

Erin McGuire

Journal of Economics & Management Strategy, 2021, vol. 30, issue 2, 308-337

Abstract: In this paper, I explore business cycle‐related dynamics in differences in exit decisions between serial and novice entrepreneurs. Using time series geographic variation in economic conditions, I examine how businesses founded by serial and novice entrepreneurs differentially respond to changes on average state personal income, alternative employment options, and home values. Weibull survival model estimates indicate that serial entrepreneurs are more likely to endure declines in aggregate income and credit availability, but are relatively more likely to go out of business as slack increases in the labor market (increases in unemployment rate). In the second part of the paper, I provide evidence that these dynamics are driven by differences in business strategies and the use of financial resources.

Date: 2021
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
http://www.blackwell ... ref=1058-6407&site=1

Access Statistics for this article

More articles in Journal of Economics & Management Strategy from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().

Page updated 2021-05-12
Handle: RePEc:bla:jemstr:v:30:y:2021:i:2:p:308-337