Competence and Commitment: Employer Size and Entrepreneurial Endurance

34 Pages Posted: 14 Sep 2008

See all articles by Jesper Sorensen

Jesper Sorensen

Stanford Graduate School of Business

Damon J. Phillips

University of Chicago Booth

Multiple version iconThere are 2 versions of this paper

Date Written: September 13, 2008

Abstract

We develop and test a theory of entrepreneurial endurance, or the likelihood that an entrepreneur will continue an entrepreneurial venture from one period to the next. Conceptualizing entrepreneurial endurance as a function of the entrepreneur's competence in and commitment to the entrepreneurial role, we argue that both factors should be shaped by the entrepreneur's prior employment. We focus on the effects of employer size on the prospective entrepreneur, and argue that employer size has a negative effect on both entrepreneurial competence and commitment. This implies that entrepreneurs from small firms should have superior economic performance and, for a given level of performance, be less likely to exit entrepreneurship. We find support for these predictions in analyses of entrepreneurs in a unique dataset characterizing the Danish labor market.

Keywords: Entrepreneurship, careers, organizational theory

Suggested Citation

Sorensen, Jesper B. and Phillips, Damon J., Competence and Commitment: Employer Size and Entrepreneurial Endurance (September 13, 2008). Available at SSRN: https://ssrn.com/abstract=1267526 or http://dx.doi.org/10.2139/ssrn.1267526

Jesper B. Sorensen (Contact Author)

Stanford Graduate School of Business ( email )

655 Knight Way
Stanford, CA 94305-5015
United States

Damon J. Phillips

University of Chicago Booth ( email )

1101 East 58th Street
Chicago, IL 60637
United States

HOME PAGE: http://www.chicagogsb.edu/faculty/bio.aspx?person_id=580067

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
201
Abstract Views
1,665
rank
164,281
PlumX Metrics