What are Entrepreneurs’ Objectives When Starting a New Business?
AbstractThis paper studies entrepreneurs' objectives when starting a business and the impact of entrepreneurial and ï¬rm characteristics on these objectives. Entrepreneurship involves two behaviors that lead to deï¬ne two types of entrepreneurs: those who start businesses to create and secure their own jobs (protection motive) and those who want to develop their ï¬rms in terms of investment and personnel (developing motive). Individuals of the ï¬rst group are deï¬ned as self-protectors and the second as developers. We show that the compositions of the self-protectors group and the developers group are very similar and differ only in a few characteristics. People with a low degree and low start-up capital are in a greater proportion among self-protectors. We use a French new entrepreneur survey and probit models to identify the determinants of choosing self-protection or development. We ï¬nd that people who start ï¬rms to create their own jobs are those who are the most discriminated against on the labor market and those who have no entrepreneurial network. People with low start-up capital are more likely to become self-protector. Developers are those who have the possibility to be developers.
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Bibliographic InfoPaper provided by TEPP in its series TEPP Working Paper with number 2010-06.
Date of creation: 2010
Date of revision:
Other versions of this item:
- Lionel Desiage, 2010. "What are Entrepreneurs' Objectives When Starting a New Business?," Working Papers halshs-00809716, HAL.
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