The entrepreneur's mode of entry: Business takeover or new venture start?

Simon Parker; Mirjam Van Praag

The entrepreneur's mode of entry: Business takeover or new venture start?

^*Corresponding author for this work

Research output: Contribution to Conference › Paper › Academic

Abstract

We extend the well-known occupational choice model of entrepreneurship by analyzing the mode of entry. Individuals can become entrepreneurs by taking over established businesses or starting up new ventures from scratch. We argue that the new venture creation mode is associated with higher levels of schooling whereas managerial experience, new venture start-up capital requirements and industry-level risk promote the takeover mode. A sample of data on entrepreneurs from the Netherlands provides broad support for these hypotheses, and also bear out a prediction that entrepreneurs whose parents run a family fi'rm tend to invest the least in schooling. We go on to discuss the implications for researchers, entrepreneurs and public policy-makers.

Original language	English
Publication status	Published - 1 Dec 2010
Externally published	Yes
Event	70th Annual Meeting of the Academy of Management - Dare to Care: Passion and Compassion in Management Practice and Research, AOM 2010 - Montreal, QC, Canada Duration: 6 Aug 2010 → 10 Aug 2010

Conference

Conference	70th Annual Meeting of the Academy of Management - Dare to Care: Passion and Compassion in Management Practice and Research, AOM 2010
Country/Territory	Canada
City	Montreal, QC
Period	6/08/10 → 10/08/10

Keywords

Business startup
Business takeover
Human capital

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Cite this

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title = "The entrepreneur's mode of entry: Business takeover or new venture start?",

abstract = "We extend the well-known occupational choice model of entrepreneurship by analyzing the mode of entry. Individuals can become entrepreneurs by taking over established businesses or starting up new ventures from scratch. We argue that the new venture creation mode is associated with higher levels of schooling whereas managerial experience, new venture start-up capital requirements and industry-level risk promote the takeover mode. A sample of data on entrepreneurs from the Netherlands provides broad support for these hypotheses, and also bear out a prediction that entrepreneurs whose parents run a family fi'rm tend to invest the least in schooling. We go on to discuss the implications for researchers, entrepreneurs and public policy-makers.",

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AU - Van Praag, Mirjam

PY - 2010/12/1

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N2 - We extend the well-known occupational choice model of entrepreneurship by analyzing the mode of entry. Individuals can become entrepreneurs by taking over established businesses or starting up new ventures from scratch. We argue that the new venture creation mode is associated with higher levels of schooling whereas managerial experience, new venture start-up capital requirements and industry-level risk promote the takeover mode. A sample of data on entrepreneurs from the Netherlands provides broad support for these hypotheses, and also bear out a prediction that entrepreneurs whose parents run a family fi'rm tend to invest the least in schooling. We go on to discuss the implications for researchers, entrepreneurs and public policy-makers.

AB - We extend the well-known occupational choice model of entrepreneurship by analyzing the mode of entry. Individuals can become entrepreneurs by taking over established businesses or starting up new ventures from scratch. We argue that the new venture creation mode is associated with higher levels of schooling whereas managerial experience, new venture start-up capital requirements and industry-level risk promote the takeover mode. A sample of data on entrepreneurs from the Netherlands provides broad support for these hypotheses, and also bear out a prediction that entrepreneurs whose parents run a family fi'rm tend to invest the least in schooling. We go on to discuss the implications for researchers, entrepreneurs and public policy-makers.

KW - Business startup

KW - Business takeover

KW - Human capital

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M3 - Paper

AN - SCOPUS:84858627266

Y2 - 6 August 2010 through 10 August 2010

ER -

The entrepreneur's mode of entry: Business takeover or new venture start?

Abstract

Conference

Keywords

Persistent URL (handle)

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Cite this