54 Pages Posted: 5 Sep 2008
Date Written: 2002
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: 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
By David Evans
By Simon Parker