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Roads Leading to Self-Employment: Comparing Transgenerational Entrepreneurs and Self-Made Start-Ups

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  • Blumberg, Boris F.

    (Maastricht University)

  • Pfann, Gerard A.

    (Maastricht University)

Abstract

This paper studies the event history of business foundation. Three theoretical concepts of human, financial and social capital are linked to investigate variations over time of people's decision processes to become self-employed. Data from a cohort of Dutch inhabitants born in 1939/1940 who have been interviewed three times during their lives in 1952, 1983, and 1993 allows for testing theoretical hypotheses that state clear differences between two different roads towards business ownership. Empirical results show that the baseline hazard decreases with time for transgenerational entrepreneurs with self-employed parents, but increases for self-made startups. Social capital in the form of strong ties is a better predictor of enterprise than human capital.

Suggested Citation

  • Blumberg, Boris F. & Pfann, Gerard A., 2015. "Roads Leading to Self-Employment: Comparing Transgenerational Entrepreneurs and Self-Made Start-Ups," IZA Discussion Papers 9155, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp9155
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    Cited by:

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    2. Viinikainen, Jutta & Heineck, Guido & Böckerman, Petri & Hintsanen, Mirka & Raitakari, Olli & Pehkonen, Jaakko, 2016. "Born entrepreneur? Adolescents' personality characteristics and self-employment in adulthood," BERG Working Paper Series 108, Bamberg University, Bamberg Economic Research Group.
    3. Molina, Jose Alberto & Ortega, Raquel & Velilla, Jorge, 2017. "Older entrepreneurs-by-necessity using fuzzy set methods: differences between developed and developing countries," MPRA Paper 76982, University Library of Munich, Germany.
    4. Gascón Salillas, Patricia, 2020. "La actividad emprendedora: Análisis transversal en la Comunidad Foral de Navarra [Entrepreneurship activity: Cross-sectional analysis in the Region of Navarra]," MPRA Paper 99386, University Library of Munich, Germany.
    5. Jose Ignacio Gimenez-Nadal & Miguel Lafuente & Jose Alberto Molina & Jorge Velilla, 2019. "Resampling and bootstrap algorithms to assess the relevance of variables: applications to cross section entrepreneurship data," Empirical Economics, Springer, vol. 56(1), pages 233-267, January.
    6. Viinikainen, Jutta & Heineck, Guido & Böckerman, Petri & Hintsanen, Mirka & Raitakari, Olli & Pehkonen, Jaakko, 2017. "Born entrepreneurs? Adolescents’ personality characteristics and entrepreneurship in adulthood," Journal of Business Venturing Insights, Elsevier, vol. 8(C), pages 9-12.
    7. Jorge, Velilla, 2017. "Feminization of entrepreneurship in developing countries? Evidence from GEM data," MPRA Paper 79997, University Library of Munich, Germany.
    8. Velilla, Jorge & Molina, José Alberto & Ortega, Raquel, 2018. "Why older workers become entrepreneurs? International evidence using fuzzy set methods," The Journal of the Economics of Ageing, Elsevier, vol. 12(C), pages 88-95.
    9. Molina, Jose Alberto & Velilla, Jorge & Ortega, Raquel, 2016. "Entrepreneurial activity in the OECD: Pooled and cross-country evidence," MPRA Paper 71592, University Library of Munich, Germany.
    10. Gimenez-Nadal, José Ignacio & Lafuente, Miguel & Molina, José Alberto & Velilla, Jorge, 2016. "Resampling and Bootstrap to Assess the Relevance of Variables: A New Algorithmic Approach with Applications to Entrepreneurship Data," IZA Discussion Papers 9938, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    new venture creation; family business; entrepreneurship;
    All these keywords.

    JEL classification:

    • D92 - Microeconomics - - Micro-Based Behavioral Economics - - - Intertemporal Firm Choice, Investment, Capacity, and Financing
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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