What Happens to Nascent Entrepreneurs? An Econometric Analysis of the PSED

Posted: 5 Apr 2010

See all articles by Yacine Belghitar

Yacine Belghitar

Middlesex University - Business School

Simon C. Parker

University of Western Ontario; Durham University - Department of Economics and Finance; IZA Institute of Labor Economics

Date Written: August 1, 2006

Abstract

This article follows the progress of a large and nationally representative sample of American nascent entrepreneurs identified in the initial interview of the Panel Study of Entrepreneurial Dynamics (PSED) over the next 12 months of the panel. We develop a novel theoretical framework based on maximisation of expected utility and the value of waiting, and estimate it to reveal which personal and economic characteristics are associated with venture start-up and which are associated with remaining a nascent entrepreneur, or giving up entirely. The value of waiting turns out to play a key role in helping us understand what happens to nascent entrepreneurs. We discuss the implications of our results for entrepreneurs, lenders, business start-up support agencies and policy-makers.

Keywords: Entrepreneurship, PSED, Nascent Entrepreneurs

JEL Classification: M13

Suggested Citation

Belghitar, Yacine and Parker, Simon C., What Happens to Nascent Entrepreneurs? An Econometric Analysis of the PSED (August 1, 2006). Small Business Economics, Vol. 27, No. 1, August 2006. Available at SSRN: https://ssrn.com/abstract=1006991

Yacine Belghitar (Contact Author)

Middlesex University - Business School ( email )

The Burroughs
London, NW4 4BT
United Kingdom

Simon C. Parker

University of Western Ontario ( email )

1151 Richmond Street
Suite 2
London, Ontario N6A 5B8
Canada

Durham University - Department of Economics and Finance ( email )

23/26 Old Elvet
Durham DH1 3HY
United Kingdom
+44 191 3747271 (Phone)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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