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Entrepreneurial motives and performance: Why might better educated entrepreneurs be less successful?

Arnab Bhattacharjee (), Jean Bonnet (), Nicolas Le Pape () and Régis Renault ()
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Régis Renault: THEMA - Théorie économique, modélisation et applications - UCP - Université de Cergy Pontoise - Université Paris-Seine - CNRS - Centre National de la Recherche Scientifique

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Abstract: In a sample of newly created French firms, the impact of an entrepreneurís education on the firm's survival varies widely depending on his previous labor market situation. While it is strongly positive for the overall population, it is much weaker or insignificant for entrepreneurs who were previously unemployed or poorly matched. Our theoretical entrepreneurship model shows that these differences may be attributed to differences in unobserved human capital for better educated entrepreneurs across different initial states in the labor market. Empirical results are consistent with the theory if employers have limited information about potential entrepreneurs'human capital.

Keywords: entrepreneurial choice; labor market; human capital; firm survival (search for similar items in EconPapers)
Date: 2009-08
Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00809745
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Working Paper: Entrepreneurial motives and performance: Why might better educated entrepreneurs be less successful? (2010) Downloads
Working Paper: Entrepreneurial motives and performance: Why might better educated entrepreneurs be less successful ? (2008)
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