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Entrepreneurship and team participation: An experimental study

  • Cooper, David J.
  • Saral, Krista Jabs

Entrepreneurs are surprisingly unlikely to have partners. One possible explanation for this is that entrepreneurs have distinctive preferences for working alone rather than in teams. However, a number of alternative explanations exist, such as an inability to locate suitable partners or low profitability from having a partner. Utilizing a diverse subject population with a high proportion of active entrepreneurs, we use a team production experiment to directly examine whether entrepreneurs prefer to work alone or in a team. The experiment also measures an important determinant of entrepreneurs' performances within teams, and their relative tendency to free-ride. The data indicate that entrepreneurs, while no more likely to free-ride on their teammates, are substantially more interested in working alone than similar non-entrepreneurs.

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Article provided by Elsevier in its journal European Economic Review.

Volume (Year): 59 (2013)
Issue (Month): C ()
Pages: 126-140

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Handle: RePEc:eee:eecrev:v:59:y:2013:i:c:p:126-140
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