Profiles of Entrepreneurial Success in a Welfare State: Using Statistical Prosopography and Cluster Analysis to Classify Top Swedish Entrepreneurs

One of the challenges of studying entrepreneurship is the lack of longitudinal data. One way to address this is through a promising new statistical approach called prosopography, where standardized biographies of prominent entrepreneurs are systematically compiled and analyzed using quantitative methodology. This method combines the detailed information available in biographies at the micro-level, with a macro-level systematic approach – an approach that, notably, has been previously applied to Italy. Here, we compile a dataset of 269 Swedish entrepreneurial biographies that focus on individuals active from the early 19th century until the present day. We find five distinctive clusters of entrepreneurs. Innovation intensity appears to be important, and, as expected, inventors represent a distinct cluster in Sweden. Other results are more novel, and in part go against the conventional view of Sweden as an industrial economy. For instance, many top Swedish entrepreneurs have developed what are best described as advanced service innovations. The institutional context clearly affects the type of entrepreneurs that emerge, but there is also evidence of interaction and reverse causation where prominent entrepreneurs have influenced the institutional development of Sweden. As a result, there is a hybrid version of capitalism combining high redistributive taxes with free market capitalism and ample room for Schumpeterian entrepreneurs as well as dynastic entrepreneurs – thereby also combining private wealth creation with distribution. While one of the world’s least family-oriented cultures, top Swedish entrepreneurs are surprisingly dynastic in their entrepreneurial endeavors.