Luck and Entrepreneurship
52 Pages Posted: 30 Aug 2017
Date Written: February 18, 2017
What is luck in the opinion of entrepreneurs, how does it affect decisions, and what role does it play in firm performance? For an answer we rely on a unique survey of 63,202 individuals. Luck perceptions shape decisions. Individuals who believe luck is important are reluctant to become entrepreneurs, and those who do exhibit lower commitment. Luck perceptions also play a crucial role in important entrepreneurial activities. Interestingly, however, luck perceptions rank last in importance among various determinants of overall entrepreneurial performance. One possible reason is that entrepreneurs do not generally pursue radically new ideas but replicate ideas seen elsewhere.
Keywords: luck, start-ups, entrepreneur, factors of success, performance
JEL Classification: G3, G02, M13
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