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Age and entrepreneurship: nuances from entrepreneur types and generation effects

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  • Ting Zhang

    (University of Baltimore)

  • Zoltan Acs

    (George Mason University)

Abstract

The literature on the relationship between age and entrepreneurship has been inconclusive. This study for the first time examines this relationship by extending the occupational choice literature to eight entrepreneur types and four generational modification effects in the USA. Multilevel mixed-effect logistic regression models are estimated to examine the age effects in entrepreneur type propensities. Generational modification effects are compared for the same ages across neighboring generations by hierarchical age-period-cohort (HAPC) models. We find that entrepreneurial propensity rises with age until around 80. The propensity of novice (versus non-novice) and unincorporated (versus incorporated) entrepreneurs has a U-shaped age trend dipping around age 60, while the propensity of full-time (versus part-time) declines since age 30s. The propensity of incorporated (versus unincorporated) entrepreneurs declines from ages 44 to 51 for Gen-Xers, but not for Boomers; this propensity also declines faster for Boomers than for Traditionalists from ages 63 to 70.

Suggested Citation

  • Ting Zhang & Zoltan Acs, 2018. "Age and entrepreneurship: nuances from entrepreneur types and generation effects," Small Business Economics, Springer, vol. 51(4), pages 773-809, December.
    • Handle: RePEc:kap:sbusec:v:51:y:2018:i:4:d:10.1007_s11187-018-0079-4
    DOI: 10.1007/s11187-018-0079-4
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    23. González Espitia, Carlos Giovanni & Sarmiento Garcia, Victor Manuel & Arboleda Cuesta, Jhonnier Marcelo, 2023. "Determinantes de la aspiración al crecimiento del negocio de los emprendedores colombianos: el rol de algunas generaciones, Baby Boomers, Generación X y Millenials [Determinants of the growth aspir," Revista de Métodos Cuantitativos para la Economía y la Empresa = Journal of Quantitative Methods for Economics and Business Administration, Universidad Pablo de Olavide, Department of Quantitative Methods for Economics and Business Administration, vol. 35(1), pages 223-249, June.
    24. Fraser,Stuart, 2019. "Impact: Entrepreneurial Borrowing: Do Entrepreneurs Seek and Receive Enough Credit?," Foundations and Trends(R) in Entrepreneurship, now publishers, vol. 15(5-6), pages 431–663-4, December.
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    More about this item

    Keywords

    Novice entrepreneurs; Necessity entrepreneurs; Opportunity entrepreneurs; Full-time entrepreneurs; Part-time entrepreneurs; Incorporated entrepreneurs; Occupational choice;
    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

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