Entrepreneurship and Team Participation: An Experimental Study

29 Pages Posted: 4 Feb 2010

See all articles by David J. Cooper

David J. Cooper

Florida State University - Department of Economics; University of East Anglia (UEA) - Centre for Behavioural and Experimental Social Science (CBESS)

Krista J. Saral

The University of North Carolina at Charlotte

Date Written: February 3, 2010

Abstract

Entrepreneurs are surprisingly unlikely to have partners. In spite of the obvious advantages to forming partnerships, only a small minority of entrepreneurs (less than 10%, excluding family businesses) have partners. A number of possible explanations exist for this puzzling phenomenon, including an inability to locate suitable partners, fear of moral hazard, and a preference for not working in groups. Utilizing a diverse subject population with a high proportion of active entrepreneurs, we use a team production experiment to study whether entrepreneurs prefer to work alone or in a team. The data indicate that entrepreneurs, while no less likely to be good teammates, are substantially less interested in joining teams. This suggests that efforts to encourage partnership among entrepreneurs may run contrary to the preferences of this group.

Keywords: Experiments, Entrepreneurship, Teams

JEL Classification: C93, L26

Suggested Citation

Cooper, David J. and Saral, Krista J., Entrepreneurship and Team Participation: An Experimental Study (February 3, 2010). Kauffman Foundation Small Research Projects Research Paper, Available at SSRN: https://ssrn.com/abstract=1547186 or http://dx.doi.org/10.2139/ssrn.1547186

David J. Cooper (Contact Author)

Florida State University - Department of Economics ( email )

Tallahassee, FL 30306-2180
United States

University of East Anglia (UEA) - Centre for Behavioural and Experimental Social Science (CBESS) ( email )

United Kingdom

Krista J. Saral

The University of North Carolina at Charlotte ( email )

9201 University City Blvd
Charlotte, NC 28223
United States

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