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Identity and Entrepreneurship

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  • Oliver Falck
  • Stephan Heblich
  • Elke Lüdemann

Abstract

We incorporate the concept of social identity into a stylized model of occupational choice and analyze whether an individual’s identity affects his or her decision to become an entrepreneur. We argue that an entrepreneurial identity results from an individual’s socialization. This could be parental influence but, as argued in this paper, also peer influence. To test this empirically, we apply instrumental variable approaches to PISA data. Our findings suggest that having an entrepreneurial peer group has a positive effect on an individual’s entrepreneurial intentions. Regarding entrepreneurial parents, we find a positive effect that cannot only be explained by ownership succession of the family business.

Suggested Citation

  • Oliver Falck & Stephan Heblich & Elke Lüdemann, 2009. "Identity and Entrepreneurship," CESifo Working Paper Series 2661, CESifo.
    • Handle: RePEc:ces:ceswps:_2661
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    Cited by:

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    2. Muhammad Amsal Sahban & Subramaniam Sri Ramalu & Ruswiati Syahputra, 2016. "The Influence of Social Support on Entrepreneurial Inclination among Business Students in Indonesia," Information Management and Business Review, AMH International, vol. 8(3), pages 32-46.
    3. Oliver Falck & Robert Gold & Stephan Heblich, 2017. "Lifting the iron curtain: school-age education and entrepreneurial intentions," Journal of Economic Geography, Oxford University Press, vol. 17(5), pages 1111-1148.
    4. Mirjam van Praag, 2009. "Who values the status of the entrepreneur?," Jena Economics Research Papers 2009-045, Friedrich-Schiller-University Jena.
    5. Michael Funke & Marc Gronwald, 2009. "A Convex Hull Approach to Counterfactual Analysis of Trade Openness and Growth," Quantitative Macroeconomics Working Papers 20906, Hamburg University, Department of Economics.
    6. Elke Lüdemann, 2011. "Schooling and the Formation of Cognitive and Non-cognitive Outcomes," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 39.
    7. Larsson, Johan P. & Wennberg, Karl & Wiklund, Johan & Wright, Mike, 2017. "Location choices of graduate entrepreneurs," Research Policy, Elsevier, vol. 46(8), pages 1490-1504.
    8. Nguyen Thi Thu Phuong & Laure Pasquier-Doumer, 2018. "The role of Social Networks on Household Business Performance in Vietnam: A qualitative assessment," Working Papers DT/2018/13, DIAL (Développement, Institutions et Mondialisation).
    9. B. Urban & J. Chantson, 2019. "Academic entrepreneurship in South Africa: testing for entrepreneurial intentions," The Journal of Technology Transfer, Springer, vol. 44(3), pages 948-980, June.
    10. Bosma, Niels & Hessels, Jolanda & Schutjens, Veronique & Praag, Mirjam Van & Verheul, Ingrid, 2012. "Entrepreneurship and role models," Journal of Economic Psychology, Elsevier, vol. 33(2), pages 410-424.
    11. Robert Gold & Oliver Falck & Stephan Heblich, 2011. "The Long Wind of Change. Educational Impacts on Entrepreneurial Intentions," ERSA conference papers ersa11p999, European Regional Science Association.
    12. Olav Sorenson, 2018. "Social networks and the geography of entrepreneurship," Small Business Economics, Springer, vol. 51(3), pages 527-537, October.
    13. Robert Gold & Oliver Falck & Stephan Heblich, 2011. "Entrepreneurship Education: The Role of Universities," ERSA conference papers ersa10p1202, European Regional Science Association.
    14. Md. Mazharul Islam & Abla Abdul Hameed Bokhari & Turki Shjaan Abalala, 2018. "Perceptions to Start up Business as a Career Choice among Saudi Female Higher Education Students," Societies, MDPI, vol. 8(2), pages 1-22, May.
    15. Claire M. Leitch & Richard T. Harrison, 2016. "Identity, identity formation and identity work in entrepreneurship: conceptual developments and empirical applications," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 28(3-4), pages 177-190, March.
    16. Sanna Joensuu-Salo & Anmari Viljamaa & Elina Varamäki, 2021. "Understanding Business Takeover Intentions—The Role of Theory of Planned Behavior and Entrepreneurship Competence," Administrative Sciences, MDPI, vol. 11(3), pages 1-17, June.

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    More about this item

    Keywords

    occupational choice; entrepreneurship; identity; peer effects;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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