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Hybrid Entrepreneurship

Timothy B. Folta (), Frédéric Delmar () and Karl Wennberg ()
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Timothy B. Folta: Krannert School of Management, Postal: Purdue University, 403 West State Street, West Lafayette, IN 47907-2056 USA

No 825, Working Paper Series from Research Institute of Industrial Economics

Abstract: In contrast to previous efforts to model the individual’s movement from wage work into entrepreneurship, we consider that individuals might transition incrementally by retaining their wage job while entering into self-employment. We show that these hybrid entrepreneurs represent a significant share of all entrepreneurial activity. Theoretical arguments are proposed to suggest why hybrid entrants are distinct from self-employment entrants, and why hybrid entry may facilitate subsequent entry into full self-employment. We demonstrate that there are significant theoretical and empirical consequences for this group and our understanding of self-employment entry and labor market dynamics. Using matched employee-employer data over eight years, we test the model on a population of Swedish wage earners in the knowledge-intensive sector.

Keywords: Hybrid entrepreneurship; Self-employment; Labour market dynamics; Transition determinants; Employee-employer data (search for similar items in EconPapers)
JEL-codes: H39 J24 L26 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2010-03-11
New Economics Papers: this item is included in nep-bec, nep-ent and nep-lab
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Published as Folta, Timothy B., Frédéric Delmar and Karl Wennberg, 'Hybrid Entrepreneurship' in Management Science, 2010, pages 253-269.

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