What happens to nascent entrepreneurs? An econometric analysis of the PSED

Simon Parker, Yacine Belghitar

Research output: Contribution to journalArticle

99 Citations (Scopus)

Abstract

This article follows the progress of a large and nationally representative sample of American nascent entrepreneurs - identified in the initial interview of the Panel Study of Entrepreneurial Dynamics (PSED) - over the next 12 months of the panel. We develop a novel theoretical framework based on maximisation of expected utility and the value of waiting, and estimate it to reveal which personal and economic characteristics are associated with venture start-up - and which are associated with remaining a nascent entrepreneur, or giving up entirely. The value of waiting turns out to play a key role in helping us understand what happens to nascent entrepreneurs. We discuss the implications of our results for entrepreneurs, lenders, business start-up support agencies and policy-makers.
Original languageEnglish
Pages (from-to)81-101
JournalSmall Business Economics
Volume27
Issue number1
DOIs
Publication statusPublished - Aug 2006

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Panel Study of Entrepreneurial Dynamics
Econometric analysis
Nascent entrepreneurs
Business start-up
Politicians
Economics
Expected utility
Entrepreneurs
Theoretical framework
Venture
Start-up

Keywords

  • nascent entrepreneurship
  • new venture creation
  • occupational choice
  • self-employment
  • business
  • survival
  • ventures
  • firms
  • information
  • dynamics
  • success
  • Canada
  • investment

Cite this

What happens to nascent entrepreneurs? An econometric analysis of the PSED. / Parker, Simon; Belghitar, Yacine.

In: Small Business Economics, Vol. 27, No. 1, 08.2006, p. 81-101.

Research output: Contribution to journalArticle

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