The Effects of Entrepreneurship Education

GESY Discussion Paper No. 269

48 Pages Posted: 8 Aug 2009

See all articles by Richard Weber

Richard Weber

LMU Entrepreneurship Center

Georg von Graevenitz

Queen Mary, School of Business and Management; Center for Competition Policy; University of Glasgow - CREATe, RCUK Centre for Copyright and New Business Models in the Creative Economy

Dietmar Harhoff

Max Planck Institute for Innovation and Competition; Ludwig-Maximilians-Universität München; Centre for Economic Policy Research (CEPR)

Date Written: August 6, 2009

Abstract

Entrepreneurship education ranks highly on policy agendas in Europe and the US, but little research is available to assess its impacts. In this context it is of primary importance to understand whether entrepreneurship education raises intentions to be entrepreneurial generally or whether it helps students determine how well suited they are for entrepreneurship. We develop a theoretical model of Bayesian learning in which entrepreneurship education generates signals which help students to evaluate their own aptitude for entrepreneurial tasks. We derive predictions from the model and test them using data from a compulsory entrepreneurship course at a German university. Using survey responses from 189 students ex ante and ex post, we find that entrepreneurial propensity declined somewhat in spite of generally good evaluations of the class. Our tests of Bayesian updating provide support for the notion that students receive valuable signals and learn about their own type in the entrepreneurship course.

Keywords: entrepreneurship, entrepreneurship education, Bayes’ Rule, learning, signals

JEL Classification: D83, J24, L26, M13

Suggested Citation

Weber, Richard and von Graevenitz, Georg and Harhoff, Dietmar, The Effects of Entrepreneurship Education (August 6, 2009). GESY Discussion Paper No. 269. Available at SSRN: https://ssrn.com/abstract=1445085 or http://dx.doi.org/10.2139/ssrn.1445085

Richard Weber (Contact Author)

LMU Entrepreneurship Center ( email )

Geschwister-Scholl-Platz 1
Munich, 80539
Germany

HOME PAGE: http://www.en.entrepreneurship-center.lmu.de

Georg Von Graevenitz

Queen Mary, School of Business and Management ( email )

Mile End
London, E1 4NS
United Kingdom

Center for Competition Policy ( email )

UEA
Norwich Research Park
Norwich, Norfolk NR47TJ
United Kingdom

University of Glasgow - CREATe, RCUK Centre for Copyright and New Business Models in the Creative Economy ( email )

10 The Square, Glasgow University
Glasgow, G12 8QQ
United Kingdom

Dietmar Harhoff

Max Planck Institute for Innovation and Competition ( email )

Marstallplatz 1
Munich, Bayern 80539
Germany
+49 89 24246 550 (Phone)
+49 89 24246 599 (Fax)

HOME PAGE: http://www.ip.mpg.de

Ludwig-Maximilians-Universität München ( email )

Munich, 80539
Germany

Centre for Economic Policy Research (CEPR)

London
United Kingdom

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