Performance persistence in entrepreneurship

Paul Gompers, Anna Kovner, Josh Lerner and David Scharfstein

Journal of Financial Economics, 2010, vol. 96, issue 1, 18-32

Abstract: This paper presents evidence of performance persistence in entrepreneurship. We show that entrepreneurs with a track record of success are much more likely to succeed than first-time entrepreneurs and those who have previously failed. In particular, they exhibit persistence in selecting the right industry and time to start new ventures. Entrepreneurs with demonstrated market timing skill are also more likely to outperform industry peers in their subsequent ventures. This is consistent with the view that if suppliers and customers perceive the entrepreneur to have market timing skill, and is therefore more likely to succeed, they will be more willing to commit resources to the firm. In this way, success breeds success and strengthens performance persistence.

Keywords: Private; equity; New; ventures; Venture; capital (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (181)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jfinec:v:96:y:2010:i:1:p:18-32

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