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When Do Employees Leave Their Job for Entrepreneurship?

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  • Ari Hyytinen
  • Mika Maliranta

Abstract

Existing firms are argued to be an important source of new entrepreneurs. Yet, relatively little is known about the characteristics of firms that breed new entrepreneurs. We use a large linked employee-employer dataset to trace and characterize the types of firms which generate new entrepreneurs in Finland. We find that such transitions are rare and that smaller firms spawn new entrepreneurs more frequently than larger firms. We also find that firms' R&D intensity and, to a lesser extent, their productivity are negatively related to the probability that employees transit into entrepreneurship. These results are robust to controlling for a number of employee and employer attributes. Copyright © The editors of the "Scandinavian Journal of Economics" 2008 .

Suggested Citation

  • Ari Hyytinen & Mika Maliranta, 2008. "When Do Employees Leave Their Job for Entrepreneurship?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 110(1), pages 1-21, March.
  • Handle: RePEc:bla:scandj:v:110:y:2008:i:1:p:1-21
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    References listed on IDEAS

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    1. David B. Audretsch & Mark Sanders, 2007. "Globalization and the Rise of the Entrepreneurial Economy," Jena Economic Research Papers 2007-003, Friedrich-Schiller-University Jena.
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    Cited by:

    1. Helmut Fryges & Bettina Müller & Michaela Niefert, 2014. "Job machine, think tank, or both: what makes corporate spin-offs different?," Small Business Economics, Springer, vol. 43(2), pages 369-391, August.
    2. repec:spr:joevec:v:28:y:2018:i:2:d:10.1007_s00191-017-0528-2 is not listed on IDEAS
    3. Elisabeth Bublitz & Florian Noseleit, 2011. "The Skill Balancing Act: Determinants of and Returns to Balanced Skills," Jena Economic Research Papers 2011-025, Friedrich-Schiller-University Jena.
    4. Berglann, Helge & Moen, Espen R. & Røed, Knut & Skogstrøm, Jens Fredrik, 2011. "Entrepreneurship: Origins and returns," Labour Economics, Elsevier, vol. 18(2), pages 180-193, April.
    5. Nyström, Kristina, 2015. "Pre- and post-entrepreneurship labor mobility of entrepreneurs and employees in entrepreneurial firms," Working Paper Series in Economics and Institutions of Innovation 420, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    6. Stuetzer, Michael & Obschonka, Martin & Audretsch, David B. & Wyrwich, Michael & Rentfrow, Peter J. & Coombes, Mike & Shaw-Taylor, Leigh & Satchell, Max, 2016. "Industry structure, entrepreneurship, and culture: An empirical analysis using historical coalfields," European Economic Review, Elsevier, vol. 86(C), pages 52-72.
    7. repec:wsi:ijimxx:v:21:y:2017:i:07:n:s1363919617500542 is not listed on IDEAS
    8. Aloña Martiarena, 2012. "Mobility of Skills and Ideas," DRUID Working Papers 12-04, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    9. Andersson, Martin & Baltzopoulos, Apostolos & Lööf, Hans, 2012. "R&D strategies and entrepreneurial spawning," Research Policy, Elsevier, vol. 41(1), pages 54-68.
    10. Xi, Guoqian & Block, Jörn & Lasch, Frank & Robert, Frank & Thurik, Roy, 2017. "How Does Firm Survival Differ between Business Takeovers and New Venture Start-ups?," IZA Discussion Papers 11155, Institute for the Study of Labor (IZA).
    11. Johanna Gast & Arndt Werner & Sascha Kraus, 2017. "Antecedents of the small firm effect: the role of knowledge spillover and blocked mobility for employee entrepreneurial intentions," International Entrepreneurship and Management Journal, Springer, vol. 13(1), pages 277-297, March.
    12. Vera Rocha & Anabela Carneiro & Celeste Amorim Varum, 2013. "Entrepreneurship Dynamics: Entry Routes, Business-Owner's Persistence and Exit Modes," CEF.UP Working Papers 1310, Universidade do Porto, Faculdade de Economia do Porto.
    13. Florian Noseleit, 2014. "Female self-employment and children," Small Business Economics, Springer, vol. 43(3), pages 549-569, October.
    14. Johannes Dick & Katrin Hussinger & Boris Blumberg & John Hagedoorn, 2013. "Is success hereditary? Evidence on the performance of spawned ventures," Small Business Economics, Springer, vol. 40(4), pages 911-931, May.
    15. Baltzopoulos, Apostolos & Braunerhjelm, Pontus & Tikoudis, Ioannis, 2012. "Spin-off: Individual, Firm, Industry and Regional Determinants," Working Paper Series in Economics and Institutions of Innovation 265, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    16. Elisabeth Bublitz & Michael Fritsch & Michael Wyrwich, 2015. "Balanced Skills and the City: An Analysis of the Relationship between Entrepreneurial Skill Balance, Thickness, and Innovation," Economic Geography, Clark University, vol. 91(4), pages 475-508, October.
    17. Nyström, Kristina, 2016. "Entrepreneurship after displacement: The transition and performance of entrepreneurial ventures created after displacement," Working Paper Series in Economics and Institutions of Innovation 443, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    18. Vera Rocha & Anabela Carneiro & Celeste Varum, 2015. "Entry and exit dynamics of nascent business owners," Small Business Economics, Springer, vol. 45(1), pages 63-84, June.
    19. Nyström, Kristina, 2016. "Regional resilience to displacement: Evidence from Panel and Quantile regressions," Ratio Working Papers 276, The Ratio Institute.
    20. Baltzopoulos, Apostolos, 2009. "The Firm and the Region as Breeding Grounds for Entrepreneurs," Working Paper Series in Economics and Institutions of Innovation 189, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    21. repec:kap:sbusec:v:49:y:2017:i:2:d:10.1007_s11187-017-9842-1 is not listed on IDEAS
    22. T.V.S.Ramamohan Rao, 2011. "Contemporary Relevance and Ongoing Controversies Related to the CES Production Function," Journal of Quantitative Economics, The Indian Econometric Society, vol. 9(2), pages 36-57, July.
    23. Maliranta, Mika & Nurmi, Satu, 2016. "Business Owners, Employees and Firm Performance," ETLA Working Papers 42, The Research Institute of the Finnish Economy.
    24. Elisabeth Bublitz & Florian Noseleit, 2014. "The skill balancing act: when does broad expertise pay off?," Small Business Economics, Springer, vol. 42(1), pages 17-32, January.

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