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Learning to be an Entrepreneur

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  • Guiso, Luigi
  • Schivardi, Fabiano

Abstract

Is entrepreneurial talent entirely innate or do people learn to become entrepreneurs? We extend Lucas's (1978) model of entrepreneurship to allow for the possibility that entrepreneurial talents may be acquired by watching other entrepreneurs in action. This model implies that areas with a greater number of firms have higher average firm productivity. We confirm this prediction using Italian firm level data. We show that the endogenous accumulation of entrepreneurial talents is a more convincing explanation for clusters of firms than heterogeneous entry costs. The evidence supports the role of learning even after controlling for other potential sources of local externalities. We also find that other specific implications of the learning mechanism are confirmed by the data.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 5290.

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Date of creation: Oct 2005
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Handle: RePEc:cpr:ceprdp:5290

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Keywords: agglomeration economies; clustering; entrepreneurship; learning;

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References

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Citations

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Cited by:
  1. Vivarelli, Marco, 2012. "Entrepreneurship in Advanced and Developing Countries: A Microeconomic Perspective," IZA Discussion Papers 6513, Institute for the Study of Labor (IZA).
  2. L. Guiso & F. Schivardi, 2006. "What determines entrepreneurial clusters?," Working Paper CRENoS 200616, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  3. Marco Vivarelli, 2013. "Is entrepreneurship necessarily good? Microeconomic evidence from developed and developing countries," Industrial and Corporate Change, Oxford University Press, vol. 22(6), pages 1453-1495, December.
  4. Stuetzer, Michael & Obschonka, Martin & Brixy, Udo & Sternberg, Rolf & Cantner, Uwe, 2013. "Regional characteristics, opportunity perception and entrepreneurial activities," MPRA Paper 48277, University Library of Munich, Germany.
  5. Michelacci, Claudio & Silva, Olmo, 2006. "Why So Many Local Entrepreneurs?," CEPR Discussion Papers 5828, C.E.P.R. Discussion Papers.
  6. Silvia Magri, 2009. "The financing of small entrepreneurs in Italy," Annals of Finance, Springer, vol. 5(3), pages 397-419, June.
  7. Vivarelli, Marco, 2012. "Drivers of entrepreneurship and post-entry performance : microeconomic evidence from advanced and developing countries," Policy Research Working Paper Series 6245, The World Bank.
  8. Bárbara Flores & Óscar Landerretche & Gabriela Sánchez, 2011. "Propensión al emprendimiento: ¿Los emprendedores nacen, se educan o se hacen?," Working Papers wp330, University of Chile, Department of Economics.
  9. Ferrante, Francesco & Sabatini, Fabio, 2007. "Education, social capital and entrepreneurial selection in Italy," MPRA Paper 2451, University Library of Munich, Germany.

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