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Entrepreneurship: Origins and Returns

Author

Listed:
  • Berglann, Helge

    (Norwegian Agricultural Economics Research Institute (NILF))

  • Moen, Espen R.

    (Norwegian Business School (BI))

  • Røed, Knut

    (Ragnar Frisch Centre for Economic Research)

  • Skogstrøm, Jens Fredrik

    (Ragnar Frisch Centre for Economic Research)

Abstract

We examine the origins and outcome of entrepreneurship on the basis of exceptionally comprehensive Norwegian matched worker-firm-owner data. In contrast to most existing studies, our notion of entrepreneurship not only comprises self-employment, but also employment in partly self-owned limited liability firms. Based on this extended entrepreneurship concept, we find that entrepreneurship tends to be profitable. It also raises income uncertainty, but the most successful quartile gains much more than the least successful quartile loses. Key determinants of the decision to become an entrepreneur are occupational qualifications, family resources, gender, and work environments. Individual unemployment encourages, while aggregate unemployment discourages entrepreneurship.

Suggested Citation

  • Berglann, Helge & Moen, Espen R. & Røed, Knut & Skogstrøm, Jens Fredrik, 2009. "Entrepreneurship: Origins and Returns," IZA Discussion Papers 4250, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp4250
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    References listed on IDEAS

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    More about this item

    Keywords

    self-employment; entrepreneurship; spin-offs;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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