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Learning Entrepreneurship From Other Entrepreneurs?

Author

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  • Guiso, Luigi
  • Pistaferri, Luigi
  • Schivardi, Fabiano

Abstract

We document that individuals who grew up in areas with high density of firms are more likely, as adults, to become entrepreneurs, controlling for the density of firms in their current location. Conditional on becoming entrepreneurs, the same individuals are also more likely to be successful entrepreneurs, as measured by business income or firm productivity. Strikingly, firm density at entrepreneur’s young age is more important than current firm density for business performance. These results are not driven by better access to external finance or intergenerational occupation choices. They are instead consistent with entrepreneurial capabilities being at least partly learnable through social contacts. In keeping with this interpretation, we find that entrepreneurs who at the age of 18 lived in areas with a higher firm density tend to adopt better managerial practices (enhancing productivity) later in life.

Suggested Citation

  • Guiso, Luigi & Pistaferri, Luigi & Schivardi, Fabiano, 2015. "Learning Entrepreneurship From Other Entrepreneurs?," CEPR Discussion Papers 10997, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:10997
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    Cited by:

    1. Jing Cai & Adam Szeidl, 2018. "Interfirm Relationships and Business Performance," The Quarterly Journal of Economics, Oxford University Press, vol. 133(3), pages 1229-1282.
    2. Lindquist, Matthew J. & Sol, Joeri & van Praag, Mirjam C. & Vladasel, Theodor, 2016. "On the Origins of Entrepreneurship: Evidence from Sibling Correlations," IZA Discussion Papers 10278, Institute of Labor Economics (IZA).
    3. Fabiano Schivardi & Tom Schmitz, 2020. "The IT Revolution and Southern Europe’s Two Lost Decades [Lack of Selection and Limits to Delegation: Firm Dynamics in Developing Countries]," Journal of the European Economic Association, European Economic Association, vol. 18(5), pages 2441-2486.
    4. Fabiano Schivardi & Tom Schmitz, 2018. "The IT Revolution and Southern Europe’s Two Lost Decades," EIEF Working Papers Series 1805, Einaudi Institute for Economics and Finance (EIEF), revised Mar 2018.
    5. Giuseppe Criaco & Philipp Sieger & Karl Wennberg & Francesco Chirico & Tommaso Minola, 2017. "Parents’ performance in entrepreneurship as a “double-edged sword” for the intergenerational transmission of entrepreneurship," Small Business Economics, Springer, vol. 49(4), pages 841-864, December.
    6. Arellano-Bover, Jaime, 2019. "Displacement, Diversity, and Mobility: Career Impacts of Japanese American Internment," IZA Discussion Papers 12554, Institute of Labor Economics (IZA).
    7. Sabrina T. Howell, 2017. "Reducing Information Frictions in Venture Capital: The Role of New Venture Competitions," NBER Working Papers 23874, National Bureau of Economic Research, Inc.
    8. Juying Zeng, 2018. "Fostering path of ecological sustainable entrepreneurship within big data network system," International Entrepreneurship and Management Journal, Springer, vol. 14(1), pages 79-95, March.
    9. Facundo Albornoz & Antonio Cabrales & Esther Hauk, 2019. "Occupational Choice with Endogenous Spillovers," Economic Journal, Royal Economic Society, vol. 129(621), pages 1953-1970.
    10. Serafinelli, Michel & Tabellini, Guido, 2017. "Creativity over Time and Space," CEPR Discussion Papers 12365, C.E.P.R. Discussion Papers.
    11. Ömer Özak, 2018. "Distance to the pre-industrial technological frontier and economic development," Journal of Economic Growth, Springer, vol. 23(2), pages 175-221, June.
    12. David Loschiavo, 2019. "Big-city life (dis)satisfaction? The effect of living in urban areas on subjective well-being," Temi di discussione (Economic working papers) 1221, Bank of Italy, Economic Research and International Relations Area.
    13. Matray, Adrien, 2021. "The local innovation spillovers of listed firms," Journal of Financial Economics, Elsevier, vol. 141(2), pages 395-412.
    14. Matthias Brachert & Walter Hyll & Abdolkarim Sadrieh, 2020. "Entry into self-employment and individuals’ risk-taking propensities," Small Business Economics, Springer, vol. 55(4), pages 1057-1074, December.

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    More about this item

    Keywords

    entrepreneurship; learning; spillovers;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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