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Entrepreneurial motives and performance : Why might better educated entrepreneurs be less successful ?

Author

Listed:
  • Arnab Bhattacharjee

    (CRIEFF - Centre for Research into Industry, Enterprise, Finance and the Firm - St Andrews)

  • Jean Bonnet

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)

  • Nicolas Le Pape

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)

  • Régis Renault

    (THEMA - Théorie économique, modélisation et applications - UCP - Université de Cergy Pontoise - Université Paris-Seine - CNRS - Centre National de la Recherche Scientifique)

Abstract

In a sample of newly created French firms, the impact of an entrepreneurís education on the firm's survival varies widely depending on his previous labor market situation. While it is strongly positive for the overall population, it is much weaker or insignificant for entrepreneurs who were previously unemployed or poorly matched. Our theoretical entrepreneurship model shows that these differences may be attributed to differences in unobserved human capital for better educated entrepreneurs across different initial states in the labor market. Empirical results are consistent with the theory if employers have limited information about potential entrepreneurs'human capital.
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Suggested Citation

  • Arnab Bhattacharjee & Jean Bonnet & Nicolas Le Pape & Régis Renault, 2008. "Entrepreneurial motives and performance : Why might better educated entrepreneurs be less successful ?," Post-Print halshs-00337431, HAL.
    • Handle: RePEc:hal:journl:halshs-00337431
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    References listed on IDEAS

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    Cited by:

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    2. Mariarosaria Agostino & Lucia Errico & Sandro Rondinella & Francesco Trivieri, 2024. "Leverage and SMEs financial stability: the role of banking competition," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 48(2), pages 345-376, June.
    3. Mathilde Aubry & Jean Bonnet & Patricia Renou-Maissant, 2015. "Entrepreneurship and the business cycle: the “Schumpeter” effect versus the “refugee” effect—a French appraisal based on regional data," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(1), pages 23-55, January.
    4. Jean Bonnet & Nicolas Le Pape, 2010. "Pre Entry Motives into Entrepreneurship and Post Entry Entrepreneurial Orientation," TEPP Working Paper 2010-12, TEPP.
    5. Rafik Abdesselam & Jean Bonnet & Patricia Renou-Maissant, 2017. "The Demography of Enterprises and Employment in the European Union Countries," Economics Working Paper Archive (University of Rennes & University of Caen) 2017-10, Center for Research in Economics and Management (CREM), University of Rennes, University of Caen and CNRS.
    6. Agostino, Mariarosaria & Errico, Lucia & Rondinella, Sandro & Trivieri, Francesco, 2023. "Enduring lending relationships and european firms default," Research in Economics, Elsevier, vol. 77(4), pages 459-477.
    7. Jean Bonnet, 2016. "From Knowledge to Innovation Economy: Developing Education and Creating Entrepreneurial Ecosystems," Economics Working Paper Archive (University of Rennes & University of Caen) 2016-02, Center for Research in Economics and Management (CREM), University of Rennes, University of Caen and CNRS.
    8. Rafik Abdesselam & Jean Bonnet & Patricia Renou-Maissant, 2013. "Typology of the French regional development: revealing the refugee/Schumpeter effects in new-firms startups," Economics Working Paper Archive (University of Rennes & University of Caen) 201333, Center for Research in Economics and Management (CREM), University of Rennes, University of Caen and CNRS.
    9. Bhattacharjee, Arnab & Han, Jie, 2014. "Financial distress of Chinese firms: Microeconomic, macroeconomic and institutional influences," China Economic Review, Elsevier, vol. 30(C), pages 244-262.

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