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The Effect of Prior Employer Firm Size on Entrepreneurs' Skills

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  • Tsuchiya, Ryuichiro
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    Abstract

    Although the entrepreneurial performance has been the main subject in entrepreneurial studies, little research has been attempted on its link with the entrepreneur's prior employer firm. In this study, we examined a relationship between employer firm size and post-entry self-employment performances. In startups, entrepreneurs should be "jacks-of-all-trades". Less definite division of labor in small business allows potential entrepreneurs to be generalists, producing more productive entrepreneurs. If that is the case, in manufacturing, in which interdependencies between production factors are strong, the necessity for being generalists is greater than in other industries. Our empirical investigation employed a rich data set representing the entire Taiwanese labor market, and confirmed hypotheses.

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    File URL: http://hermes-ir.lib.hit-u.ac.jp/rs/bitstream/10086/16966/1/070econDP06-16.pdf
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    Bibliographic Info

    Paper provided by Graduate School of Economics, Hitotsubashi University in its series Discussion Papers with number 2006-16.

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    Length: 26 p.
    Date of creation: Dec 2006
    Date of revision:
    Handle: RePEc:hit:econdp:2006-16

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    Keywords: Entrepreneurship; Firm Size; Entrepreneurial Human Capital; Entrepreneurial Skill; Spin-off;

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    1. Rafik Abdesselam & Jean Bonnet & Nicolas Le Pape, 2004. "An Explanation of the Life Span of New French Firms," Small Business Economics, Springer, vol. 23(3), pages 237-254, October.
    2. Douglas Holtz-Eakin & David Joulfaian & Harvey S. Rosen, 1993. "Sticking it Out: Entrepreneurial Survival and Liquidity Constraints," NBER Working Papers 4494, National Bureau of Economic Research, Inc.
    3. Luis Garicano & Thomas N. Hubbard, 2003. "Firms' Boundaries and the Division of Labor: Empirical Strategies," Journal of the European Economic Association, MIT Press, vol. 1(2-3), pages 495-502, 04/05.
    4. McPherson, Michael A., 1996. "Growth of micro and small enterprises in southern Africa," Journal of Development Economics, Elsevier, vol. 48(2), pages 253-277, March.
    5. Bates, Timothy, 1990. "Entrepreneur Human Capital Inputs and Small Business Longevity," The Review of Economics and Statistics, MIT Press, vol. 72(4), pages 551-59, November.
    6. Audretsch, David B. & Keilbach, Max C. & Lehmann, Erik E., 2006. "Entrepreneurship and Economic Growth," OUP Catalogue, Oxford University Press, number 9780195183511.
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