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Allocation and Productivity of Time in New Ventures of Female and Male Entrepreneurs

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Author Info
Verheul, I.
Carree, M.A.
Thurik, A.R. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University)

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Abstract

This paper investigates time allocation decisions in new ventures of female and male entrepreneurs using a model that distinguishes between effects of preferences and productivity on the number of working hours. Using data of 1,158 entrepreneurs we find that the preference for work time in new ventures relates to start-up motivation, propensity to take risk and availability of other income. Productivity of work time relates to human, financial and social capital endowments and the prevalence of outsourcing activities. This study also evaluates actual profit effects one year after start-up. We find that on average women invest less time in the business than men. This can be attributed to both a lower preference for work time (driven by risk aversion and availability of other income) and a lower productivity per hour worked (due to lower endowments of human, social and financial capital).

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Publisher Info
Paper provided by Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam. in its series Research Paper with number ERS-2007-009-ORG Revision_Date: 2009-11-09.

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Date of creation: 05 Feb 2007
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Handle: RePEc:dgr:eureri:30009879

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Keywords: time allocation; new ventures; gender; productivity; preferences;

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  1. André van Stel & Roy Thurik & Ingrid Verheul & Lendert Baljeu, 2007. "The Relationship between Entrepreneurship and Unemployment in Japan," Tinbergen Institute Discussion Papers 07-080/3, Tinbergen Institute, revised 14 Jul 2008. [Downloadable!]
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