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Allocation and Productivity of Time in new Ventures of Female and Male Entrepreneurships

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  • Ingrid Verheul
  • Martin Carree
  • Roy Thurik

Abstract

This paper investigates time allocation decisions in new ventures of female and male entrepreneurs using a new model that distinguishes between effects of preferences (what they like) and productivity (what they are good at) on the number of working hours. Using data of 1203 entrepreneurs we find that the preference for work time in new ventures is related to the motivation for starting up a business, the propensity to take risk and the availability of other income. Productivity of work time is explained by human, financial and social capital and outsourcing. This study also evaluates actual profit effects one year after start-up. With respect to gender we find that – on average – women invest less time in the business than men. This can be attributed to a lower productivity per hour worked, due to lower endowments of human, social and financial capital.

Suggested Citation

  • Ingrid Verheul & Martin Carree & Roy Thurik, 2008. "Allocation and Productivity of Time in new Ventures of Female and Male Entrepreneurships," Papers on Entrepreneurship, Growth and Public Policy 2006-01, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
  • Handle: RePEc:esi:egpdis:2006-01
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    File URL: ftp://papers.econ.mpg.de/egp/discussionpapers/2006-01.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    time allocation; preferences; productivity; gender; new ventures;

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • 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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