The Entrepreneur Next Door: Characteristics of Individuals Starting Companies in America: An Executive Summary of the Panel Study of Entrepreneurial Dynamics

54 Pages Posted: 5 Sep 2008  

Paul D. Reynolds

Florida International University, Eugenio Pino & Family Global Entrepreneurship Center

William B. Gartner

Copenhagen Business School; Clemson University - College of Business and Behavioral Science

Patricia G. Greene

Babson College

Larry W. Cox

Pepperdine University - Graziadio School of Business and Management

Nancy M. Carter

Catalyst Associates, Inc.; INSEAD

Date Written: 2002

Abstract

The Panel Study of Entrepreneurial Dynamics attempts to provide systematic, reliable data about the fundamental nature of the business start-up or entrepreneurial process. 830 nascent entrepreneurs were identified from a sample of 64,622 U.S. households, and their business startup activities were followed over a two-year period.

This executive summary reports the first stage of the initial sample of 64,622 households and the screening interviews. Four questions were investigated: (1) who is starting businesses, (2) how they start them, (3) which efforts result in new firms, and (4) why some startups become successful high-growth businesses. Five successful entrepreneurs are also profiled.

Among the findings: entrepreneurship is a widespread activity; about half of all new ventures are started by teams; men are twice as likely as women to start new businesses; except for people older than 65, entrepreneurship involves adults of all ages; blacks are about 50 percent more likely than whites to start businesses; education and household income significantly predict entrepreneurship; place affects entrepreneurial activity; and the impact of urban context varies for whites, blacks, and Hispanics.

Keywords: Gender, Educational background, Startups, Nascent entrepreneurs, Novice entrepreneurs, Startups, Minority firms, Individual traits, Female owned businesses, Gender, Panel Study of Entrepreneurial Dynamics (PSED)

Suggested Citation

Reynolds, Paul D. and Gartner, William B. and Greene, Patricia G. and Cox, Larry W. and Carter, Nancy M., The Entrepreneur Next Door: Characteristics of Individuals Starting Companies in America: An Executive Summary of the Panel Study of Entrepreneurial Dynamics (2002). Available at SSRN: https://ssrn.com/abstract=1262320 or http://dx.doi.org/10.2139/ssrn.1262320

Paul D. Reynolds (Contact Author)

Florida International University, Eugenio Pino & Family Global Entrepreneurship Center ( email )

University Park
11200 SW 8th Street
Miami, FL 33199
United States

William B. Gartner

Copenhagen Business School

Department of Management, Politics and Philosophy
Porcelaenshaven 18B
Frederiksberg C, DK - 2000
Denmark

Clemson University - College of Business and Behavioral Science ( email )

345 Sirrine Hall
Clemson, SC 29634
United States

HOME PAGE: http://www.clemson.edu/cbbs/faculty-staff/profiles/profile.html?userid=GARTNER

Patricia G. Greene

Babson College ( email )

231 Forest Street
Babson Park, MA 02457-0310
United States

Larry W. Cox

Pepperdine University - Graziadio School of Business and Management ( email )

Malibu, CA
United States

Nancy M. Carter

Catalyst Associates, Inc. ( email )

120 Wall Street, 15th Floor
New York, NY 10005
United States
2125147600 x 307 (Phone)
2125148470 (Fax)

HOME PAGE: http://www.catalystwomen.org/about/staff.shtml#3

INSEAD ( email )

Boulevard de Constance
77305 Fontainebleau Cedex
France

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