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Identity and entrepreneurship: do school peers shape entrepreneurial intentions?

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  • Oliver Falck
  • Stephan Heblich
  • Elke Luedemann

Abstract

We incorporate the concept of social identity into entrepreneurship and analyze the determinants of having entrepreneurial intentions. We argue that an entrepreneurial identity results from an individual’s socialization. This could be parental influence but, as argued in this paper, also peer influence. Based on Programme for International Student Assessment (PISA) 2006 data in which students report their entrepreneurial intentions at the age of 15, we find that having an entrepreneurial peer group has a positive effect on an individual’s entrepreneurial intentions. We find that the strength of the peer effect in a country is moderated by prevailing values, namely individualism.
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Suggested Citation

  • Oliver Falck & Stephan Heblich & Elke Luedemann, 2012. "Identity and entrepreneurship: do school peers shape entrepreneurial intentions?," Small Business Economics, Springer, vol. 39(1), pages 39-59, July.
  • Handle: RePEc:kap:sbusec:v:39:y:2012:i:1:p:39-59
    DOI: 10.1007/s11187-010-9292-5
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    More about this item

    Keywords

    Social identity; Entrepreneurial intentions; Entrepreneurship; Peer effects; J24; L26; Z13;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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