http://repub.eur.nl/res/concept/jel-L26/ Recent publications classified by JEL Code L26 en http://repub.eur.nl/static-eur/img/logo.png http://repub.eur.nl http://repub.eur.nl/res/pub/37266/ 2013-03-26T00:00:00Z The growing interest of the business world in the virtues of individ- uals with specific cognitive behavioral characteristics, such as lack of attention and hyperactivity, is not matched by scholarly work. Indi- viduals who experience the challenges associated with such character- istics are thought to thrive in work environments that embrace their talents. Given that entrepreneurship requires a distinctive mindset, we test the hypothesis that individuals who, more than others, expe- rience symptoms of attention deficit and hyperactivity (ADHD) favor entrepreneurship over wage-employment. Using data of nearly 13,000 university students, we show that symptoms of attention deficit and hyperactivity increase the likelihood of intending to startup a busi- ness directly after study. We find evidence for partial mediation of two work attributes; independence and risk tolerance. Students who experience ADHD symptoms prefer to work independently and do not shy away from working on high-risk projects, which partly explains their preference for an entrepreneurial career. Verheul, I. Block, J.H. Burmeister-Lamp, K. Thurik, A.R. Tiemeier, H. Turturea, R. http://repub.eur.nl/res/pub/38004/ 2012-12-06T00:00:00Z Empirical studies have shown that entrepreneurs earn, on average, less than the market wage for employees with otherwise similar characteristics. We examine whether having previously been self-employed is in itself a negative signal on the job market. In a field experiment where two applications of otherwise equally qualified individuals were sent for the same vacancies, we find that entrepreneurs systematically receive fewer responses than non-entrepreneurs. Thus, it appears that the earnings differential is partially explained by the fact that entrepreneurs do not have access to the reference jobs in practice. We discuss what type of unfavorable information self-employment may carry. Koellinger, Ph.D. Mell, J. Pohl, I. Roessler, C. Treffers, T. http://repub.eur.nl/res/pub/37297/ 2012-05-01T00:00:00Z We model entrepreneurship and the emergence of firms as an outcome of simultaneous bidding for labor services among heterogeneous agents. What distinguishes our approach from prior work is that occupational choice and job matching are determined simultaneously, so that the opportunity costs of entrepreneurs are accounted for. Those who are relatively unmanageable, while possibly excellent managers themselves, become entrepreneurs. Entrepreneurs compete and create value by building efficient organizations and offering potentially well-paid jobs to others. While the entry of an additional entrepreneur typically reduces some individual wages, we show that it always raises the average wage and depresses the average income of incumbent entrepreneurs. This result may help explain the empirically low returns to entrepreneurship. Roessler, C. Koellinger, Ph.D. http://repub.eur.nl/res/pub/23503/ 2012-04-01T00:00:00Z In the media role models are increasingly being acknowledged as an influential factor in explaining the reasons for the choice of occupation and career. Various conceptual studies have proposed links between role models and entrepreneurial intentions. However, empirical research aimed at establishing the importance of role models for (nascent) entrepreneurs is scarce. Knowledge of the presence of entrepreneurial role models, their specific functions and characteristics is therefore limited. Our explorative empirical study is a first step towards filling this gap. Our study is based on the outcomes of a questionnaire completed by a representative sample of 292 entrepreneurs in three major Dutch cities – entrepreneurs who have recently started up a business in the retail, hotel and restaurant sectors, business services and other services. We provide indications of the presence and importance of entrepreneurial role models, the function of these role models, the similarity between the entrepreneur and the role model, and the strength of their relationship. Highlights ► Role models emerge as influential factors in individual decision making. ► However, empirical knowledge of entrepreneurial role models is limited. ► We explore impacts, functions and characteristics of entrepreneurial role models. ► We find that role models often influence others in their decision to start a firm. ► Role models tend to be next-door examples and fulfill several functions. Bosma, N. Hessels, S.J.A. Schutjens, V. Praag, M. van Verheul, I. http://repub.eur.nl/res/pub/37296/ 2012-02-23T00:00:00Z We model entrepreneurship and the emergence of …rms as an out- come of simultaneous bidding for labor services among heterogeneous agents. What distinguishes our approach from prior work is that oc- cupational choice and job matching are determined simultaneously, so that the opportunity costs of entrepreneurs are accounted for. Those who are relatively unmanageable, while possibly excellent managers themselves, become entrepreneurs. Entrepreneurs compete and create value by building e¢ cient organizations and o¤ering potentially well- paid jobs to others. While the entry of an additional entrepreneur typically reduces some individual wages, we show that it always raises the average wage and depresses the average income of incumbent en- trepreneurs. This result may help explain the empirically low returns to entrepreneurship. Roessler, C. Koellinger, Ph.D. http://repub.eur.nl/res/pub/37308/ 2011-12-22T00:00:00Z Using data from representative population surveys in 17 countries, we find that the lower rate of female business ownership is primarily due to women's lower propensity to start businesses rather than to differences in survival rates across genders. We show that women are less confident in their entrepreneurial skills, have different social networks and exhibit higher fear of failure than men. After controlling for endogeneity, we find that these variables explain a substantial part of the gender gap in entrepreneurial activity. Although, of course, their relative importance varies significantly across countries, these factors appear to have a universal effect. Koellinger, Ph.D. Minniti, M. Schade, C. http://repub.eur.nl/res/pub/26894/ 2011-10-28T00:00:00Z Critics claim that short-term profit orientation and high deal price strategies of private equity (PE) firms can negatively affect the ability of management buyouts to initiate and sustain entrepreneurial management. This study investigates this claim by comparing effects of majority PE backed and other buy-outs at different levels of financial leverage on post buy-out increases in entrepreneurial management. We propose that PE can be used as an organizational refocusing device that simultaneously increases entrepreneurial and administrative management. We find that majority PE-backed buy-outs significantly increase entrepreneurial management practices. Furthermore, the increased financial leverage positively affects administrative management in management buy-outs. However, the effect of high financial leverage is larger for majority PE-backed buy-outs. These results support the notion that PE firms help buy-out companies develop ambidextrous organizational change: i.e. simultaneously develop entrepreneurial and administrative management practices. The findings have important implications for practitioners and policy makers. Bruining, J. Verwaal, E. Wright, M. http://repub.eur.nl/res/pub/25940/ 2011-10-01T00:00:00Z Candidate gene studies of human behavior are gaining interest in economics and entrepreneurship research. Performing and interpreting these studies is not straightforward because the selection of candidates influences the interpretation of the results. As an example, Nicolaou et al. (Small Bus Econ 36:151-155, 2011) report a significant association between a common genetic variant in the DRD3 gene and the tendency to be an entrepreneur. We fail to replicate this finding using a much larger, independent dataset. In addition, we discuss the candidate gene approach and give suggestions to avoid the publication of false positives. Loos, M.J.H.M. van der Koellinger, Ph.D. Groenen, P.J.F. Rietveld, C.A. Rivadeneira Ramirez, F. Rooij, F.J.A. van Uitterlinden, A.G. Hofman, A. Thurik, A.R. http://repub.eur.nl/res/pub/37309/ 2011-07-19T00:00:00Z We find new empirical regularities in the business cycle in a cross-country panel of 22 OECD countries for the period 1972-2007; entrepreneurship Granger-causes the cycles of the world economy. Furthermore, the entrepreneurial cycle is positively affected by the national unemployment cycle. We discuss possible causes and implications of these findings. Koellinger, Ph.D. Thurik, A.R. http://repub.eur.nl/res/pub/25538/ 2011-06-06T00:00:00Z This study investigates if and in what way social entrepreneurs are hampered in turning their efforts into sustainable organizations. Using binary logit regressions and unique data containing approximately 26,000 individual-level data points for 36 countries, this study assesses the influences of perceived environmental barriers, risk variables, and socio-demographic variables on the probability of being a social entrepreneur versus a commercial entrepreneur. Our findings confirm that socially motivated entrepreneurs are less likely to survive the earliest levels of entrepreneurial engagement. Several factors have been identified to explain this underperformance. Compared to commercial entrepreneurs, social entrepreneurs perceive more financial and informational start-up barriers, are more afraid of personal failure and bankruptcy, and can be found in the lower and higher age categories. In addition, this study found that social entrepreneurs are more likely to be female and highly educated than are their commercial counterparts. Hoogendoorn, B. Zwan, P.W. van der Thurik, A.R. http://repub.eur.nl/res/pub/25722/ 2011-04-21T00:00:00Z Entrepreneurship research has traditionally focused on opportunity recognition and resource formation as processes that foster the emergence of new business ventures, through both the lens of the individual entrepreneur and corporate venturing. Although we observe that research is vibrant in these traditional areas, we also argue that the continued revitalization of the field of entrepreneurship can be fostered through examining opportunities for research in areas such as industry change and competition, inter-organizational cooperation (which has proliferated more recently), university-sponsored entrepreneurship, venture finance, institutional differences that foster entrepreneurship (primarily between different countries), and appropriability regime differences (including legal and regulatory frameworks) that foster entrepreneurial activities and profit appropriation. Besides pointing scholars to new promising directions, we argue for more attention to the transformational role of entrepreneurship itself by issuing a call for more multi-level research efforts that connect the micro- and macro-foundations of entrepreneurship and explore the revitalization-related uncertainties such as the cost of creating an entrepreneurial orientation and whether there is an optimal level. © 2011 The Authors. Journal of Management Studies Hoskisson, R.E. Covin, J. Volberda, H.W. Johnson, R.A. http://repub.eur.nl/res/pub/22907/ 2011-04-01T00:00:00Z In the media role models are increasingly being acknowledged as an influential factor in explaining the reasons for the choice of occupation and career. Various conceptual studies have proposed links between role models and entrepreneurial intentions. However, empirical research aimed at establishing the importance of role models for (nascent) entrepreneurs is scarce. Knowledge of the presence of entrepreneurial role models, their specific functions and characteristics is therefore limited. Our explorative empirical study is a first step towards filling this gap. Our study is based on the outcomes of a questionnaire completed by a representative sample of 292 entrepreneurs in three major Dutch cities - entrepreneurs who have recently started up a business in the retail, hotel and restaurant sectors, business services and other services. We provide indications of the presence and importance of entrepreneurial role models, the function of these role models, the similarity between the entrepreneur and the role model, and the strength of their relationship. Bosma, N. Hessels, S.J.A. Schutjens, V. Praag, M. van Verheul, I. http://repub.eur.nl/res/pub/22556/ 2011-02-01T00:00:00Z Job satisfaction of self-employed and paid-employed workers is analyzed using the European Community Household Panel for the EU-15 covering the years 1994-2001. We distinguish between two types of job satisfaction, i.e. job satisfaction in terms of type of work and job satisfaction in terms of job security. Findings from our generalized ordered logit regressions indicate that self-employed individuals as compared to paid employees are more likely to be satisfied with their present jobs in terms of type of work and less likely to be satisfied in terms of job security. The findings also provide many insights into the determinants of the two types of job satisfaction for both the self-employed and paid employees Millan, J.M. Thurik, A.R. Hessels, S.J.A. Aguado, R. http://repub.eur.nl/res/pub/22257/ 2011-01-01T00:00:00Z The relationship between outcome status and encountered problems in the business start-up process is investigated. Contrary to expectations, we find that starters do not substantially differ from quitters in the number and type of problems encountered, and that problems encountered generally do not affect outcome status. This research is based on a sample of 414 Dutch nascent entrepreneurs followed over a three-year period. Its design is comparable to that of the U.S. Panel Study of Entrepreneurial Dynamics. Gelderen, A.M. van Thurik, A.R. Pankaj, P. http://repub.eur.nl/res/pub/34714/ 2011-01-01T00:00:00Z Abstract: This paper investigates the dynamics of the informal sector in Madagascar during a period of fragile growth. Overall, the behavior of informal firms in terms of earnings, employment and capital accumulation points to a degree of heterogeneity which goes beyond a simple dualistic model and even a more refined model that would distinguish between an upper entrepreneurial and a lower subsistence tier within the informal sector. However, in line with the dualistic model, the informal sector indeed fulfils a labor absorbing function in times of crisis. During the growth period we see capital accumulation in most of the sectors and lots of evidence that households expand their activities. However, this happens mainly through the creation of new firms instead of the expansion of existing ones, which is consistent with much higher returns at very low levels of capital. More rapid expansion can be observed in sectors that operate with lower capital intensity, which is also consistent with risk or credit constraints as major deterrents to expansion. While there is some indication that total factor productivity increased over time, returns to capital and labor where not higher at the end of the observation period than at the beginning. Returns are also rather low at high levels of capital. These findings point to a limited growth potential of the informal sector as a whole. The heterogeneity in capital returns hints at large inefficiencies in allocating capital across informal firms. Grimm, M. Lay, J. Vaillant, J. Roubaud, F. http://repub.eur.nl/res/pub/21239/ 2010-11-02T00:00:00Z Whereas the determinants of entrepreneurial choice have been thoroughly analyzed in the literature, little is known about the preferred mode of entry into entrepreneurship, such as taking over an existing business or starting a new venture. Using a large international dataset, this study reports considerable differences in takeover preferences across 33 countries. Hierarchical (multi-level) regressions are performed to explore individual-level and country-level determinants of the preferred mode of entry. At the individual level, a person’s human capital, risk attitude, and inventiveness influence the preference for starting a new venture versus taking over an existing business. At the country level, the culture-inherent level of risk tolerance, the country’s level of innovation output, and the administrative difficulty of starting a new business are found to explain the between-country variation in the preferred mode of entry. Implications of our findings for research and practice are also discussed. Block, J.H. Thurik, A.R. Zwan, P.W. van der Walter, S. http://repub.eur.nl/res/pub/20807/ 2010-08-01T00:00:00Z Entrepreneurs exit their businesses due to selection pressures they experience in the market place. In addition to this well-known ex-post decision to exit, entrepreneurs select ex-ante whether they are willing to pursue an entrepreneurial career at all, or to give up their entrepreneurial intentions. Hardly anything is known about the latter selection process in imagined markets that precedes the creation of variation and selection process in real markets. This article explores these two selection processes using survey data on 20,000 individuals in 27 European countries and the United States in 2007. We distinguish business failure from exit by sell-off. Individuals in the United States are less likely to exit imagined markets and are more likely to exit the real market than are Europeans. Individuals in a corporatist welfare state regime have relatively high chances to exit imagined markets but low chances to exit real markets (due to failure). Business owners in metropolitan and urban environments are more likely to fail than their rural counterparts, while individuals with a high risk tolerance and individuals with a self-employed parent are less likely to exit imagined or real markets (via business failure). In short, this study shows that exit in real and in imagined markets is differently affected by individual characteristics as well as by the competitive and institutional environment. Stam, E. Thurik, A.R. Zwan, P.W. van der http://repub.eur.nl/res/pub/15775/ 2010-07-14T00:00:00Z We test a new model where the entrepreneurial decision is described as a process of successive engagement levels, i.e. as an entrepreneurial ladder. Five levels are distinguished using nearly 12 000 observations from the 2004 ‘Flash Eurobarometer survey on Entrepreneurship’ covering the 25 European Union member states and the United States. The most surprising of the many results is that perception of lack of financial support is no obstacle for moving to a higher entrepreneurial engagement level whereas perceived administrative complexity is a significant obstacle. We also show that the effect of age on the probability of moving forward in the entrepreneurial process becomes negative after a certain age implying that if entrepreneurial engagements are not taken early enough in life they may well never be taken. Zwan, P.W. van der Thurik, A.R. Grilo, I. http://repub.eur.nl/res/pub/19661/ 2010-05-01T00:00:00Z The article reports on the authors' research in the Netherlands which focused on a profit model in Dutch retail stores and a so-called blue-ocean approach which requires a new market that attracts consumers and increases profits. Topics include the competitive strategy approach to increasing profits. The authors conclude that the blue-ocean strategy or innovation approach is sustainable. Burke, A.E. Stel, A.J. van Thurik, A.R. http://repub.eur.nl/res/pub/19424/ 2010-04-26T00:00:00Z The aim of the study is to explain the determinants of contractual completeness in franchise relationships by formulating and testing various propositions derived from transaction cost theory, agency theory, property rights theory, organizational capability theory and relational view of governance. The degree of contractual completeness depends on behavioural uncertainty (negatively), trust (positively), franchisees’ specific investments (negatively), environmental uncer-tainty (negatively), intangibility of system specific know-how (negatively) and contract design capabilities (positively). The hypotheses are tested with a data base consisting of 52 franchise systems in Austria. The empirical results support the hypotheses regarding behavioural uncertainty, trust and intangible system-specific know-how. Hendrikse, G.W.J. Windsperger, J.