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Learning to be an Entrepreneur

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  • Guiso, Luigi
  • Schivardi, Fabiano

Abstract

Is entrepreneurial talent entirely innate or do people learn to become entrepreneurs? We extend Lucas's (1978) model of entrepreneurship to allow for the possibility that entrepreneurial talents may be acquired by watching other entrepreneurs in action. This model implies that areas with a greater number of firms have higher average firm productivity. We confirm this prediction using Italian firm level data. We show that the endogenous accumulation of entrepreneurial talents is a more convincing explanation for clusters of firms than heterogeneous entry costs. The evidence supports the role of learning even after controlling for other potential sources of local externalities. We also find that other specific implications of the learning mechanism are confirmed by the data.

Suggested Citation

  • Guiso, Luigi & Schivardi, Fabiano, 2005. "Learning to be an Entrepreneur," CEPR Discussion Papers 5290, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:5290
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. de Bruin Anne M. & Ferrante Francesco M., 2011. "Bounded Opportunity: A Knowledge-Based Approach to Opportunity Recognition and Development," Entrepreneurship Research Journal, De Gruyter, vol. 1(4), pages 1-23, October.
    2. Luigi Guiso & Fabiano Schivardi, 2011. "What Determines Entrepreneurial Clusters?," Journal of the European Economic Association, European Economic Association, vol. 9(1), pages 61-86, February.
    3. Martin Andersson, 2015. "Start-up rates, entrepreneurship culture and the business cycle: Swedish patterns from national and regional data," Chapters,in: Innovation and Entrepreneurship in the Global Economy, chapter 7, pages 162-183 Edward Elgar Publishing.
    4. Michael Stuetzer & Martin Obschonka & Udo Brixy & Rolf Sternberg & Uwe Cantner, 2014. "Regional characteristics, opportunity perception and entrepreneurial activities," Small Business Economics, Springer, vol. 42(2), pages 221-244, February.
    5. Enrico Santarelli & Marco Vivarelli, 2007. "Entrepreneurship and the process of firms’ entry, survival and growth," Industrial and Corporate Change, Oxford University Press, vol. 16(3), pages 455-488, June.
    6. Martin G.A. Svensson, 2015. "When being wrong might be right: on overconfidence as an evolutionary mechanism of nascent entrepreneurs," Chapters,in: Innovation and Entrepreneurship in the Global Economy, chapter 10, pages 237-258 Edward Elgar Publishing.
    7. Claudio Michelacci & Olmo Silva, 2007. "Why So Many Local Entrepreneurs?," The Review of Economics and Statistics, MIT Press, vol. 89(4), pages 615-633, November.
    8. Marco Vivarelli, 2013. "Is entrepreneurship necessarily good? Microeconomic evidence from developed and developing countries," Industrial and Corporate Change, Oxford University Press, vol. 22(6), pages 1453-1495, December.
    9. Bárbara Flores & Óscar Landerretche & Gabriela Sánchez, 2011. "Propensión al emprendimiento: ¿Los emprendedores nacen, se educan o se hacen?," Working Papers wp330, University of Chile, Department of Economics.
    10. Vivarelli, Marco, 2012. "Drivers of entrepreneurship and post-entry performance : microeconomic evidence from advanced and developing countries," Policy Research Working Paper Series 6245, The World Bank.
    11. Vivarelli, Marco, 2012. "Entrepreneurship in Advanced and Developing Countries: A Microeconomic Perspective," IZA Discussion Papers 6513, Institute for the Study of Labor (IZA).
    12. repec:wfo:wstudy:27459 is not listed on IDEAS
    13. Silvia Magri, 2009. "The financing of small entrepreneurs in Italy," Annals of Finance, Springer, vol. 5(3), pages 397-419, June.
    14. Claudio Michelacci & Olmo Silva, 2007. "Why So Many Local Entrepreneurs?," The Review of Economics and Statistics, MIT Press, vol. 89(4), pages 615-633, November.
    15. Ferrante, Francesco & Sabatini, Fabio, 2007. "Education, social capital and entrepreneurial selection in Italy," MPRA Paper 2451, University Library of Munich, Germany.

    More about this item

    Keywords

    agglomeration economies; clustering; entrepreneurship; learning;

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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