TY - JOUR

T1 - The experience of the founder and self-employment duration

T2 - A comparative advantage approach

AU - Oberschachtsiek, Dirk

PY - 2012/7

Y1 - 2012/7

N2 - This paper investigates how the initial experience of a founder affects self-employment duration in a competing risks setting. The analysis uses survey data that provide new perspectives on the role of the founder's experience. The analysis concentrates on the importance of a balanced skill set for self-employment duration. The results show that most self-employed individuals find themselves unemployed upon ending their self-employment. Firm-level characteristics are less significant in explaining self-employment duration, while experience and motivation appear to be driving forces for self-employment longevity. The findings support the importance of combined practical experience and adequate skills. Having broad experience combined with competence in sales/business is one of the most important factors for self-employment duration. Contrary to most other studies, the results show that previous self-employment experience is associated with early exits.

AB - This paper investigates how the initial experience of a founder affects self-employment duration in a competing risks setting. The analysis uses survey data that provide new perspectives on the role of the founder's experience. The analysis concentrates on the importance of a balanced skill set for self-employment duration. The results show that most self-employed individuals find themselves unemployed upon ending their self-employment. Firm-level characteristics are less significant in explaining self-employment duration, while experience and motivation appear to be driving forces for self-employment longevity. The findings support the importance of combined practical experience and adequate skills. Having broad experience combined with competence in sales/business is one of the most important factors for self-employment duration. Contrary to most other studies, the results show that previous self-employment experience is associated with early exits.

KW - Balanced skill set

KW - Competing risks

KW - Duration

KW - Human capital

KW - Self-employment

KW - Economics

UR - http://www.scopus.com/inward/record.url?scp=84860368966&partnerID=8YFLogxK

UR - https://www.mendeley.com/catalogue/971ed7fa-237e-396a-aff5-b95301171af3/

U2 - 10.1007/s11187-010-9288-1

DO - 10.1007/s11187-010-9288-1

M3 - Journal articles

AN - SCOPUS:84860368966

VL - 39

SP - 1

EP - 17

JO - Small Business Economics

JF - Small Business Economics

SN - 0921-898X

IS - 1

ER -