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| Tekijä: | Plehn-Dujowich, J. |
| Otsikko: | A theory of serial entrepreneurship |
| Lehti: | Small business economics
2010 : NOV, VOL. 35:4, p. 377-398 |
| Asiasana: | entrepreneurship new enterprise business failures labour markets market entry market exit experience |
| Kieli: | eng |
| Tiivistelmä: | The share of serial entrepreneurs to entrepreneurial activity is significant: in Europe, 18-30% of entrepreneurs are serial; in the US, their share is about one-eighth. Yet, entrepreneurship theories and industry dynamics presume all firms being launched by novice entrepreneurs and firm failure identical with exit from entrepreneurship. A theory of serial entrepreneurship is proposed with an entrepreneur having three occupational choices: maintain his business in operation, shut it down and enter the labor market, or shut it down and launch a new venture while suffering a serial startup cost. In equilibrium, a skilled entrepreneur shuts down a low quality business to become a serial entrepreneur, launching and then closing firms until a high quality business is found; a less skilled entrepreneur shuts down a low quality business to enter the labor market, never to become a serial entrepreneur. A wage decrease or serial startup cost, or an increase in the startup capital, enhances the serial entrepreneurs' contribution to entrepreneurial activity and fosters new firm formation (by increasing entrepreneurship and the number of surviving new firms), but its impact on the exit rate of new firms is ambiguous. The model is shown to be consistent with evidence relating to the impact of an entrepreneur's characteristics and experience in entrepreneurship on firm survival and his entry into and survival in entrepreneurship. |
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