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Do entrepreneurs matter?

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Becker, Sascha O. and Hvide, Hans K. (2013) Do entrepreneurs matter? Working Paper. Coventry: Economics Department, University of Warwick. Warwick economics research paper series (TWERPS), Volume 2013 (Number 1002). (Unpublished)

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Abstract

In the large literature on firm performance, economists have given little attention to entrepreneurs. We use the deaths of 500 entrepreneurs as a source of exogenous variation, and ask whether this variation can explain shifts in firm performance. Using longitudinal data, we find large and sustained effects of entrepreneurs at all levels of the performance distribution.
Entrepreneurs strongly affect firm growth patterns of very young firms and for firms that have begun to mature. We do not find significant differences between small and larger firms, family and non-family firms, nor between firms located in urban and rural areas, but we do find stronger effects for founders with high human capital. Overall, the results suggest that an often overlooked factor - individual entrepreneurs - plays a large role in affecting firm performance.

Item Type: Working or Discussion Paper (Working Paper)
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculty of Social Sciences > Economics
Library of Congress Subject Headings (LCSH): Businesspeople, Human capital, Business enterprises, Industrial management -- Research
Series Name: Warwick economics research paper series (TWERPS)
Publisher: Economics Department, University of Warwick
Place of Publication: Coventry
Official Date: January 2013
Dates:
DateEvent
January 2013["eprint_fieldopt_dates_date_type_available" not defined]
Volume: Volume 2013
Number: Number 1002
Number of Pages: 43
Status: Not Peer Reviewed
Publication Status: Unpublished
Access rights to Published version: Open Access (Creative Commons)
Version or Related Resource: Becker, Sascha O. and Hvide, Hans K. (2013) Do entrepreneurs matter? Working Paper. Coventry: Economics Department, University of Warwick. CAGE Online Working Paper Series, Vol.2013, Number 109.

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