‘Entrepreneurs out of necessity’: a snapshot

Markus Poschke

Applied Economics Letters, 2013, vol. 20, issue 7, 658-663

Abstract: ‘Entrepreneurs out of necessity’ as identified by the Global Entrepreneurship Monitor (GEM) survey are a sizeable group across countries. This article documents that they tend to have low education, run smaller firms, expect their firms to grow less, but are likely to stay in the market. This evidence matters for policy supporting small businesses. It is a challenge for existing theories of heterogeneous firms and points to the importance of heterogeneous outside options.

Date: 2013
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Working Paper: "Entrepreneurs out of Necessity": A Snapshot (2010)
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DOI: 10.1080/13504851.2012.727968

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