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An entrepreneur performance index

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  • Harold Fried
  • Loren Tauer

Abstract

A measure of entrepreneur performance is important to identify current and future successful ventures, to further our understanding of the entrepreneurial process and to guide public policies to improve the success rate of start-ups. We propose a single value index of entrepreneur performance that ranges from one to zero, that is predicated on multiple inputs, and that mitigates the impact of outliers. The index is calculated for firms from the Kauffman Foundation Firm Survey for years 2004 through 2009. The average value of the index increases over time as firms either improve their performance or exit the data set due to failure. Survival analysis shows that the index serves as a leading indicator of success, although many additional factors are important. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Harold Fried & Loren Tauer, 2015. "An entrepreneur performance index," Journal of Productivity Analysis, Springer, vol. 44(1), pages 69-77, August.
    • Handle: RePEc:kap:jproda:v:44:y:2015:i:1:p:69-77
    DOI: 10.1007/s11123-015-0436-0
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    References listed on IDEAS

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    Cited by:

    1. de Freitas Michelin Claudia & Minello Italo Fernando & Siluk Julio Cezar Mairesse & Gerhardt Vinícius Jaques & Savian Fernando de Souza & Garlet Taís Bisognin, 2023. "Analysis of Entrepreneurial Behaviour in Incubated Technology-Based Companies," Business Systems Research, Sciendo, vol. 14(1), pages 54-71, September.
    2. Joseph Farhat & Sharon Matusik & Alicia Robb & David T. Robinson, 2018. "New directions in entrepreneurship research with the Kauffman Firm Survey," Small Business Economics, Springer, vol. 50(3), pages 521-532, March.
    3. Ioannis E. Tsolas, 2022. "Assessing Regional Entrepreneurship: A Bootstrapping Approach in Data Envelopment Analysis," Stats, MDPI, vol. 5(4), pages 1-10, November.
    4. Staniewski, Marcin W. & Awruk, Katarzyna & Leonardi, Giuseppe & Słomski, Wojciech, 2024. "Family determinants of entrepreneurial success - The mediational role of self-esteem and achievement motivation," Journal of Business Research, Elsevier, vol. 171(C).
    5. Staniewski, Marcin W., 2016. "The contribution of business experience and knowledge to successful entrepreneurship," Journal of Business Research, Elsevier, vol. 69(11), pages 5147-5152.
    6. Pindard-Lejarraga, Maud & Lejarraga, José, 2024. "Information source and entrepreneurial performance expectations: Experience-based versus description-based opportunity evaluations," Journal of Business Research, Elsevier, vol. 172(C).
    7. Gala, Kaushik & Valladares, Carlos D. & Mueller, Brandon A., 2023. "Students' assumptions of Entrepreneurs’ performance: The paradox of excess entry and missed opportunity," Journal of Business Venturing Insights, Elsevier, vol. 20(C).

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    More about this item

    Keywords

    Entrepreneur performance; Performance index; Order-m; Survival analysis; C43; L26; M13;
    All these keywords.

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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