Luck and Entrepreneurship

52 Pages Posted: 30 Aug 2017

See all articles by Diego Liechti

Diego Liechti

University of Berne - Institute for Financial Management

Claudio F. Loderer

University of Berne - Institute for Financial Management; European Corporate Governance Institute (ECGI)

Urs Peyer

INSEAD - Finance

Urs Waelchli

Rochester-Bern Executive Programs; University of Rochester - Simon Business School

Date Written: February 18, 2017

Abstract

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

Suggested Citation

Liechti, Diego and Loderer, Claudio F. and Peyer, Urs C. and Waelchli, Urs, Luck and Entrepreneurship (February 18, 2017). Simon Business School Working Paper No. FR 17-20, Available at SSRN: https://ssrn.com/abstract=3028539 or http://dx.doi.org/10.2139/ssrn.3028539

Diego Liechti (Contact Author)

University of Berne - Institute for Financial Management ( email )

Engehaldenstrasse 4
Bern, CH-3012
Switzerland

HOME PAGE: http://www.ifm.unibe.ch

Claudio F. Loderer

University of Berne - Institute for Financial Management ( email )

Engehaldenstrasse 4
Bern, CH-3012
Switzerland
+41 31 631 37 75 (Phone)
+41 31 631 84 21 (Fax)

European Corporate Governance Institute (ECGI) ( email )

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium

HOME PAGE: http://www.ecgi.org

Urs C. Peyer

INSEAD - Finance ( email )

Boulevard de Constance
F-77305 Fontainebleau Cedex
France
+33 1 6072 4178 (Phone)
+33 1 6072 4045 (Fax)

Urs Waelchli

Rochester-Bern Executive Programs ( email )

Engehaldenstrasse 4
Bern, 3012
Switzerland

University of Rochester - Simon Business School ( email )

Rochester, NY 14627
United States

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