The Productivity Advantage of Serial Entrepreneurs

51 Pages Posted: 10 Apr 2017

See all articles by Kathryn L. Shaw

Kathryn L. Shaw

Stanford Graduate School of Business; National Bureau of Economic Research (NBER)

Anders Sorensen

Copenhagen Business School - Department of Economics

Date Written: April 2017

Abstract

Serial entrepreneurs, who open more than one business, are found to have higher sales and higher productivity than novice entrepreneurs, who open one business. Using panel data on entrepreneurs and their firms from Denmark for 2001-2013, the serial entrepreneur has 67% higher sales than the novice, but also opens firms that are larger in terms of the initial capital and labor, and thus is 39% more productive. There are subsets of firms that perform especially well – serial entrepreneurs that hold a portfolio of overlapping ongoing firms perform the best, as do those that open as limited liability firm rather than proprietorships. Female serial entrepreneurs do as well as male serial entrepreneurs relative to the performance of novices of their own genders. The second firms of the serial entrepreneurs also stay in business longer than the first (and only) firms of the novices.

Suggested Citation

Shaw, Kathryn L. and Sorensen, Anders, The Productivity Advantage of Serial Entrepreneurs (April 2017). NBER Working Paper No. w23320. Available at SSRN: https://ssrn.com/abstract=2949643

Kathryn L. Shaw (Contact Author)

Stanford Graduate School of Business ( email )

655 Knight Way
Stanford, CA 94305-5015
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Anders Sorensen

Copenhagen Business School - Department of Economics ( email )

Porcelaenshaven 16A
DK-2000 Frederiksberg
Denmark
+45 3815 3493 (Phone)
+45 3815 2576 (Fax)

HOME PAGE: http://www.cbs.dk/en/staff/aseco

Register to save articles to
your library

Register

Paper statistics

Downloads
7
Abstract Views
174
PlumX Metrics