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Allocation and Productivity of Time in new Ventures of Female and Male Entrepreneurships

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Author Info
Ingrid Verheul
Martin Carree
Roy Thurik

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Abstract

This paper investigates time allocation decisions in new ventures of female and male entrepreneurs using a new model that distinguishes between effects of preferences (what they like) and productivity (what they are good at) on the number of working hours. Using data of 1203 entrepreneurs we find that the preference for work time in new ventures is related to the motivation for starting up a business, the propensity to take risk and the availability of other income. Productivity of work time is explained by human, financial and social capital and outsourcing. This study also evaluates actual profit effects one year after start-up. With respect to gender we find that – on average – women invest less time in the business than men. This can be attributed to 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 Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group in its series Papers on Entrepreneurship, Growth and Public Policy with number 2006-01.

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Length: 21 pages
Date of creation: Dec 2008
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Handle: RePEc:esi:egpdis:2006-01

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

Other versions of this item:

Find related papers by JEL classification:
J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups

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    Other versions:
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    Other versions:
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    Other versions:
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