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Social Interactions and Entrepreneurial Activity

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Author Info

  • Mariassunta Giannetti
  • Andrei Simonov

Abstract

"We show that individuals residing in highly entrepreneurial neighborhoods are more likely to become entrepreneurs and invest more into their own businesses, even though their entrepreneurial profits are lower and their alternative job opportunities more attractive. Our results suggest that peer effects create nonpecuniary benefits from entrepreneurial activity and play an important role in the decision to become an entrepreneur. Alternative explanations, such as entry costs, social learning, and informal credit markets, are not supported by the data." Copyright (c) 2009 Wiley Periodicals, Inc..

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Journal of Economics & Management Strategy.

Volume (Year): 18 (2009)
Issue (Month): 3 (09)
Pages: 665-709

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Handle: RePEc:bla:jemstr:v:18:y:2009:i:3:p:665-709

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Web page: http://www.kellogg.northwestern.edu/research/journals/JEMS/

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Web: http://www.blackwellpublishing.com/journal.asp?ref=1058-6407&site=1

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Cited by:
  1. Niels Bosma & Jolanda Hessels & Veronique Schutjens & Mirjam van Praag & Ingrid Verheul, 2011. "Entrepreneurship and Role Models," Tinbergen Institute Discussion Papers 11-061/3, Tinbergen Institute.
  2. Elke Lüdemann, 2011. "Schooling and the Formation of Cognitive and Non-cognitive Outcomes," ifo Beiträge zur Wirtschaftsforschung, Ifo Institute for Economic Research at the University of Munich, number 39.
  3. Zhang, Junfu & Zhao, Zhong, 2011. "Social-Family Network and Self-Employment: Evidence from Temporary Rural-Urban Migrants in China," IZA Discussion Papers 5446, Institute for the Study of Labor (IZA).
  4. Chen, Henry & Gompers, Paul & Kovner, Anna & Lerner, Josh, 2010. "Buy local? The geography of venture capital," Journal of Urban Economics, Elsevier, vol. 67(1), pages 90-102, January.
  5. Elvin Afandi & Majid Kermani, 2014. "Bridging the Gender Gap in Entrepreneurship: Evidence from Europe," William Davidson Institute Working Papers Series wp1074, William Davidson Institute at the University of Michigan.
  6. Josh Lerner & Ulrike Malmendier, 2011. "With a Little Help from My (Random) Friends: Success and Failure in Post-Business School Entrepreneurship," NBER Working Papers 16918, National Bureau of Economic Research, Inc.
  7. Falck, Oliver & Heblich, Stephan & Lüdemann, Elke, 2012. "Identity and entrepreneurship: Do school peers shape entrepreneurial intentions?," Munich Reprints in Economics 20633, University of Munich, Department of Economics.
  8. Niels Bosma & Ingrid Verheul & Jolanda Hessels & Mirjam van Praag & Veronique Schutjens, 2011. "Entrepreneurship and Role Models," Scales Research Reports H201017, EIM Business and Policy Research.
  9. Elena Nikolova & Frantisek Ricka & Dora Simroth, 2012. "Entrepreneurship in the transition region: an analysis based on the Life in Transition Survey," Working Papers 141, European Bank for Reconstruction and Development, Office of the Chief Economist.
  10. Lamin, Anna & Dunlap, Denise, 2011. "Complex technological capabilities in emerging economy firms: The role of organizational relationships," Journal of International Management, Elsevier, vol. 17(3), pages 211-228, September.
  11. Berthold, Norbert & Kullas, Matthias, 2006. "Unternehmer: der Treibstoff des Wachstumsmotors!," Wirtschaftswissenschaftliche Beiträge 89, Julius-Maximilians-Universität Würzburg, Lehrstuhl für Volkswirtschaftslehre, insbes. Wirtschaftsordnung und Sozialpolitik.
  12. Polona Tominc & Miroslav Rebernik, 2007. "Growth Aspirations and Cultural Support for Entrepreneurship: A Comparison of Post-Socialist Countries," Small Business Economics, Springer, vol. 28(2), pages 239-255, March.
  13. Berthold, Norbert & Kullas, Matthias & Neumann, Michael, 2007. "Motivatoren und Demotivatoren für Unternehmer im deutschen Maschinen- und Anlagenbau," Wirtschaftswissenschaftliche Beiträge 98, Julius-Maximilians-Universität Würzburg, Lehrstuhl für Volkswirtschaftslehre, insbes. Wirtschaftsordnung und Sozialpolitik.
  14. Caliendo, Marco & Kritikos, Alexander S., 2011. "Searching for the Entrepreneurial Personality: New Evidence and Avenues for Further Research," IZA Discussion Papers 5790, Institute for the Study of Labor (IZA).

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