Do Entrepreneurs Matter?

Sascha O. Becker, Hans Krogh Hvide

Research output: Working paper › Discussion paper

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Abstract

Entrepreneurs strongly affect firm outcomes. We use deaths of several hundred entrepreneurs as a source of exogenous variation, and find large and sustained effects of entrepreneurs at all levels of the firm performance distribution. Entrepreneurs strongly affect performance of both very young firms and more mature firms, and across the firm size distribution. The results appear stronger in ‘dynamic’ industries with higher education level, larger R&D expenses and higher sales growth. The effects appear to be driven by entrepreneur specialness rather than leadership transition; the effects of death of entrepreneur-managers is economically and statistically stronger than the death of managers that are not entrepreneurs. Overall, entrepreneurs play a large and unique role not previously empirically documented.
Original languageEnglish
PublisherUniversity of Aberdeen Business School
Number of pages65
Publication statusPublished - Dec 2015

Publication series

NameDiscussion Paper in Economics
PublisherUniversity of Aberdeen
No.13
Volume15
ISSN (Electronic)0143-4543

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Entrepreneurs
Managers
Firm size distribution
Expenses
Industry dynamics
Firm performance
Sales growth

Keywords

  • entrepreneurship
  • firm performance
  • human capital

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)

Cite this

Becker, S. O., & Hvide, H. K. (2015). Do Entrepreneurs Matter? (Discussion Paper in Economics; Vol. 15, No. 13). University of Aberdeen Business School.

Do Entrepreneurs Matter? / Becker, Sascha O. ; Hvide, Hans Krogh.

University of Aberdeen Business School, 2015. (Discussion Paper in Economics; Vol. 15, No. 13).

Research output: Working paper › Discussion paper

Becker, SO & Hvide, HK 2015 'Do Entrepreneurs Matter?' Discussion Paper in Economics, no. 13, vol. 15, University of Aberdeen Business School.
Becker SO, Hvide HK. Do Entrepreneurs Matter? University of Aberdeen Business School. 2015 Dec. (Discussion Paper in Economics; 13).
Becker, Sascha O. ; Hvide, Hans Krogh. / Do Entrepreneurs Matter?. University of Aberdeen Business School, 2015. (Discussion Paper in Economics; 13).
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