Work Experience from Paid Employment and the Path to Entrepreneurship: Business Takeover Versus New Venture Start-Up

15 Pages Posted: 1 Jun 2016

See all articles by Guoqian Xi

Guoqian Xi

Shanghai University of Finance and Economics - College of Business

Jorn H. Block

University of Trier - Faculty of Management; Erasmus University Rotterdam (EUR) - Institute of Management (ERIM)

Frank Lasch

Montpellier Business School; Montpellier Research in Management

Frank Robert

Montpellier Business School

Roy Thurik

Montpellier Business School; Erasmus University Rotterdam (EUR) - Centre for Advanced Small Business Economics (CASBEC); Erasmus Research Institute of Management (ERIM); EIM Netherlands - Business and Policy Research; Tinbergen Institute

Abstract

Our paper investigates how the type of work experience gained from prior paid employment influences the path to entrepreneurship. We distinguish between two distinct entrepreneurship entry modes: business takeover and new venture start-up. Using a large and rich French data set, we find that small firm experience increases the likelihood for business takeover, whereas management and same sector experience both increase the likelihood for new ventures. Our findings are relevant for policymakers aiming to improve the business transfer process.

Keywords: entrepreneurship entry mode, business takeover, new venture start-up, work experience

JEL Classification: L26

Suggested Citation

Xi, Guoqian and Block, Jorn Hendrich and Lasch, Frank and Robert, Frank and Thurik, Roy, Work Experience from Paid Employment and the Path to Entrepreneurship: Business Takeover Versus New Venture Start-Up. IZA Discussion Paper No. 9949, Available at SSRN: https://ssrn.com/abstract=2786033

Guoqian Xi (Contact Author)

Shanghai University of Finance and Economics - College of Business ( email )

777 Guoding Road
Shanghai, 200433
China

Jorn Hendrich Block

University of Trier - Faculty of Management ( email )

D-54296
Germany

Erasmus University Rotterdam (EUR) - Institute of Management (ERIM) ( email )

Burgemeester Oudlaan 50
3000 DR Rotterdam, Zuid-Holland 3062PA
Netherlands

Frank Lasch

Montpellier Business School ( email )

2300, Avenue des Moulins
Montpellier, 34185
France

HOME PAGE: http://www.montpellier-bs.com/

Montpellier Research in Management ( email )

Place Eugène Bataillon
Montpellier, 34095
France

HOME PAGE: http://www.mrm.univ-montp2.fr/

Frank Robert

Montpellier Business School

2300 Avenue des Moulins
Montpellier, 34080
France

Roy Thurik

Montpellier Business School

France

Erasmus University Rotterdam (EUR) - Centre for Advanced Small Business Economics (CASBEC) ( email )

3000 DR Rotterdam
Netherlands
+31 10 408 2232 (Phone)
+31 10 408 9146 (Fax)

HOME PAGE: http://www.thurik.com

Erasmus Research Institute of Management (ERIM) ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands

EIM Netherlands - Business and Policy Research

Postbus 7001
2701 AA Zoetermeer
Netherlands
+31 79 341 3634 (Phone)
+31 79 331 3742 (Fax)

Tinbergen Institute ( email )

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands

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