The experience of the founder and self-employment duration: A comparative advantage approach
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In: Small Business Economics, Vol. 39, No. 1, 07.2012, p. 1-17.
Research output: Journal contributions › Journal articles › Research › peer-review
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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 -