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An entrepreneur performance index

Author

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  • Harold Fried

    ()

  • Loren Tauer

Abstract

A measure of entrepreneur performance is important to identify current and future successful ventures, to further our understanding of the entrepreneurial process and to guide public policies to improve the success rate of start-ups. We propose a single value index of entrepreneur performance that ranges from one to zero, that is predicated on multiple inputs, and that mitigates the impact of outliers. The index is calculated for firms from the Kauffman Foundation Firm Survey for years 2004 through 2009. The average value of the index increases over time as firms either improve their performance or exit the data set due to failure. Survival analysis shows that the index serves as a leading indicator of success, although many additional factors are important. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Harold Fried & Loren Tauer, 2015. "An entrepreneur performance index," Journal of Productivity Analysis, Springer, vol. 44(1), pages 69-77, August.
  • Handle: RePEc:kap:jproda:v:44:y:2015:i:1:p:69-77
    DOI: 10.1007/s11123-015-0436-0
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    References listed on IDEAS

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    1. Terrence Sebora & Sang Lee & Nittana Sukasame, 2009. "Critical success factors for e-commerce entrepreneurship: an empirical study of Thailand," Small Business Economics, Springer, vol. 32(3), pages 303-316, March.
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    5. Santos-Requejo, Libia & Gonzalez-Benito, Oscar, 2000. "Economic Success Factors in Spanish Small Retail Businesses: An Analysis Based on Sector-Relative Definitions," Small Business Economics, Springer, vol. 15(3), pages 209-222.
    6. Libia Santos-Requejo & Óscar González-Benito, 2000. "Economic Success Factors in Spanish Small Retail Businesses. An Analysis Based on Sector-Relative Definitions," Small Business Economics, Springer, vol. 15(3), pages 209-222, November.
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    11. Ryan Sutter & Roger R. Stough, 2009. "Measuring entrepreneurship and knowledge capital: Metropolitan economic efficiency in the USA1," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 21(4), pages 351-373, July.
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    Cited by:

    1. repec:kap:sbusec:v:50:y:2018:i:3:d:10.1007_s11187-017-9905-3 is not listed on IDEAS
    2. Staniewski, Marcin W., 2016. "The contribution of business experience and knowledge to successful entrepreneurship," Journal of Business Research, Elsevier, vol. 69(11), pages 5147-5152.

    More about this item

    Keywords

    Entrepreneur performance; Performance index; Order-m; Survival analysis; C43; L26; M13;

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • 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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