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Title:
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Ability or Finances as Constraints on Entrepreneurship?
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|
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Evidence from Survival Rates in a Natural Experiment |
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Author:
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Andersen, Steffen; Meisner Nielsen, Kasper |
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Abstract:
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We use a natural experiment in Denmark to test the hypothesis that aspiring
entrepreneurs face financial constraints because of low entrepreneurial quality. We
identify 304 constrained entrepreneurs who start a business after receiving windfall wealth and
examine the performance of these marginal entrepreneurs. We find that constrained
entrepreneurs have significantly lower survival rates and lower profits when compared
with a matched sample of unconstrained entrepreneurs. These results are consistent with
the hypothesis that the marginal entrepreneur is of low quality. |
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URI:
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http://hdl.handle.net/10398/8499
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Date:
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2012-08-21 |
This work is licensed under a Creative Commons License.
