Are All the Potential Entrepreneurs so Good?
Posted: 24 Nov 2009
Date Written: 2004
While the vast economic literature on entry has beenrecently accompanied by a growing literature on the post-entry performance ofnewborn firms, still few studies propose a connection between the twophenomena. Exploiting the opportunity of using data concerning potential entrepreneurs,this study attempts to relate ex-ante economic, individual and environmentalfeatures to both the decision to start a new firm and -- in the case of actualfoundation - - to the post-entry performance exhibited by the newborn firm. Empirical results based on 365 Italian potential founders show thatentrepreneurial projects based on a rich information set, a first-best choiceand on self commitment are more likely to develop into actual startups andbetter post-entry performances. (Publication abstract)
Keywords: Founders, Performance evaluation, Startup rates, Startups, Nascent entrepreneurs, Motivation, Firm performance, Individual traits
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