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Work Experience from Paid Employment and the Path to Entrepreneurship: Business Takeover versus New Venture Start-Up

Author

Listed:
  • Xi, Guoqian

    (University of Trier)

  • Block, Jörn

    (University of Trier)

  • Lasch, Frank

    (Montpellier Business School)

  • Robert, Frank

    (Montpellier Business School)

  • Thurik, Roy

    (Erasmus School of Economics)

Abstract

Our paper investigates how the type of work experience gained from prior paid employment influences the path to entrepreneurship. We distinguish between two distinct entrepreneurship entry modes: business takeover and new venture start-up. Using a large and rich French data set, we find that small firm experience increases the likelihood for business takeover, whereas management and same sector experience both increase the likelihood for new ventures. Our findings are relevant for policymakers aiming to improve the business transfer process.

Suggested Citation

  • Xi, Guoqian & Block, Jörn & Lasch, Frank & Robert, Frank & Thurik, Roy, 2016. "Work Experience from Paid Employment and the Path to Entrepreneurship: Business Takeover versus New Venture Start-Up," IZA Discussion Papers 9949, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp9949
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    References listed on IDEAS

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    3. Fujii, Edwin T. & Hawley, Clifford B., 1991. "Empirical aspects of self-employment," Economics Letters, Elsevier, vol. 36(3), pages 323-329, July.
    4. Françoise Bastié & Sylvie Cieply & Pascal Cussy, 2013. "The entrepreneur's mode of entry: the effect of social and financial capital," Post-Print halshs-00658182, HAL.
    5. Arnold C. Cooper & William C. Dunkelberg, 1986. "Entrepreneurship and paths to business ownership," Strategic Management Journal, Wiley Blackwell, vol. 7(1), pages 53-68, January.
    6. Paul Gompers & Josh Lerner & David Scharfstein, 2005. "Entrepreneurial Spawning: Public Corporations and the Genesis of New Ventures, 1986 to 1999," Journal of Finance, American Finance Association, vol. 60(2), pages 577-614, April.
    7. Annabelle Jaouen & Frank Lasch, 2015. "A new typology of micro-firm owner-managers," Post-Print hal-02011095, HAL.
    8. Françoise Bastié & Sylvie Cieply & Pascal Cussy, 2013. "The entrepreneur’s mode of entry: the effect of social and financial capital," Small Business Economics, Springer, vol. 40(4), pages 865-877, May.
    9. Daniel W. Elfenbein & Barton H. Hamilton & Todd R. Zenger, 2010. "The Small Firm Effect and the Entrepreneurial Spawning of Scientists and Engineers," Management Science, INFORMS, vol. 56(4), pages 659-681, April.
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    12. Stuetzer, Michael & Goethner, Maximilian & Cantner, Uwe, 2012. "Do balanced skills help nascent entrepreneurs to make progress in the venture creation process?," Economics Letters, Elsevier, vol. 117(1), pages 186-188.
    13. Parker, Simon C, 2009. "Why do small firms produce the entrepreneurs?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(3), pages 484-494, June.
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    Cited by:

    1. Charles Stephen Tundui & Christopher Shiganza, 2021. "Determinants of entrepreneurial behaviour in the public sector in Tanzania: a case of water services provision," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 11(1), pages 189-199, December.

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    More about this item

    Keywords

    entrepreneurship entry mode; business takeover; new venture start-up; work experience;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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