Entrepreneurs of Circumstance: Labour Market Distress and Entrepreneurship

37 Pages Posted: 20 Dec 2023

See all articles by Himal Gautam

Himal Gautam

BI Norwegian Business School

Date Written: July 30, 2023

Abstract

I study individuals who become entrepreneurs following an industry downturn using the massive decline in oil prices in 2014 to understand the potential of entrepreneurship as an alternative career path for employees affected by industry downturns. The oil price decline resulted in increased entrepreneurial activity among oil workers in Norway. Compared to new entrepreneurs unaffected by the shock, such ‘entrepreneurs of circumstance’ tend to originate from lower income levels within their respective companies. These entrepreneurs also run more profitable firms, and the difference in profitability is unique to the cohort of firms started by employees affected by the shock.

Keywords: Entrepreneurship, labour market distress, oil price

JEL Classification: E32, J23, J24, L25, L26, M13

Suggested Citation

Gautam, Himal, Entrepreneurs of Circumstance: Labour Market Distress and Entrepreneurship (July 30, 2023). Available at SSRN: https://ssrn.com/abstract=4667684 or http://dx.doi.org/10.2139/ssrn.4667684

Himal Gautam (Contact Author)

BI Norwegian Business School ( email )

HOME PAGE: http://himalgautam.com

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