Are All the Potential Entrepreneurs so Good?

Posted: 24 Nov 2009

See all articles by Marco Vivarelli

Marco Vivarelli

Universita Cattolica del Sacro Cuore, Milano; IZA Institute of Labor Economics

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

Suggested Citation

Vivarelli, Marco, Are All the Potential Entrepreneurs so Good? (2004). Small Business Economics, Vol. 23, Issue 1, p. 41-49 2004. Available at SSRN:

Marco Vivarelli (Contact Author)

Universita Cattolica del Sacro Cuore, Milano ( email )

Largo Gemelli 1
Milano, 20123

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072

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