EconPapers    
Economics at your fingertips  
 

Illegal Entrepreneurship Experience

Ruta Aidis () and Mirjam Praag

No 04-105/3, Tinbergen Institute Discussion Papers from Tinbergen Institute

Abstract: Existing studies show a positive relationship between entrepreneurs' business performance and their conventional human capital as measured by previous business experience and formal education. In this paper, we explore whether illegal entrepreneurship experience (IEE), an unconventional form of human capital, is related to the performance and motivation of entrepreneurs operating legal businesses in a transition context. Using regression techniques on a sample of 399 private business owners in Lithuania, we find that, in general, IEE is significantly and positively associated with subjective measures of business motivation. Moreover, younger entrepreneurs benefit from their IEE in terms of business performance, indicating that they have been more successful than older entrepreneurs in transferring their IEE to a market oriented setting. In addition, IEE and business performance are positively related for entrepreneurs who started completely new legal businesses. Thus, our research partially supports the notion that prior experience in the black or gray market may signal and provide valuable human capital for legal enterprising.

This discussion paper has resulted in a publication in the Journal of Business Venturing , 2007, 22(2), 283-310.

Keywords: entrepreneurship; human capital; illegal entrepreneurship; transition economy (search for similar items in EconPapers)
JEL-codes: J21 J23 J24 J49 L25 M13 O17 P31 (search for similar items in EconPapers)
Date: 2004-09-23
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link)
https://papers.tinbergen.nl/04105.pdf (application/pdf)

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: https://EconPapers.repec.org/RePEc:tin:wpaper:20040105

Access Statistics for this paper

More papers in Tinbergen Institute Discussion Papers from Tinbergen Institute Contact information at EDIRC.
Bibliographic data for series maintained by Tinbergen Office +31 (0)10-4088900 ().

 
Page updated 2021-06-20
Handle: RePEc:tin:wpaper:20040105