Abstract

http://ssrn.com/abstract=972691
 


 



Mecca or Mirage? The Determinants and Outcomes of Entrepreneurship of Recent Harvard Business School Graduates


Ulrike Malmendier


University of California, Berkeley - Department of Economics; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR); Institute for the Study of Labor (IZA)

Josh Lerner


Harvard Business School - Finance Unit; Harvard University - Entrepreneurial Management Unit; National Bureau of Economic Research (NBER)

March 15, 2007

AFA 2008 New Orleans Meetings Paper

Abstract:     
A core question in the analysis of entrepreneurship is which determinants induce people to become entrepreneurs and which determinants predict entrepreneurial success. We use a unique data set on Harvard Business School graduates from 1997 to 2004, who participated in a business plan contest, to analyze this question. We find that family status, risk aversion, and academic achievement are orthogonal to the decision to become entrepreneur but have strong predictive power for entrepreneurial success. Moreover, while the business school environment and, in particular, business school peers appear to induce more entrepreneurship, they are also associated with entrepreneurial failure. Our findings suggest that business school graduates may not sufficiently adjust to the importance of individual predictors of entrepreneurial success.

Keywords: Entrepreneurship, Peer Effects

JEL Classification: M13, G1

working papers series


Not Available For Download

Date posted: March 19, 2007  

Suggested Citation

Malmendier, Ulrike and Lerner, Josh, Mecca or Mirage? The Determinants and Outcomes of Entrepreneurship of Recent Harvard Business School Graduates (March 15, 2007). AFA 2008 New Orleans Meetings Paper. Available at SSRN: http://ssrn.com/abstract=972691 or http://dx.doi.org/10.2139/ssrn.972691

Contact Information

Ulrike Malmendier (Contact Author)
University of California, Berkeley - Department of Economics ( email )
549 Evans Hall #3880
Berkeley, CA 94720-3880
United States
(510) 642-8724 (Phone)
(510) 642-6615 (Fax)
HOME PAGE: http://www.econ.berkeley.edu/~ulrike/
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Centre for Economic Policy Research (CEPR)
77 Bastwick Street
London, EC1V 3PZ
United Kingdom
Institute for the Study of Labor (IZA)
P.O. Box 7240
Bonn, D-53072
Germany
HOME PAGE: http://www.iza.org/en/webcontent/personnel/photos/index_html?key=918
Josh Lerner
Harvard Business School - Finance Unit ( email )
Boston, MA 02163
United States
617-495-6065 (Phone)
617-496-7357 (Fax)
HOME PAGE: http://www.people.hbs.edu/jlerner/
Harvard University - Entrepreneurial Management Unit
Cambridge, MA 02163
United States
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
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