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Hybrid entrepreneurship

Author

Listed:
  • Timothy Folta

    (Krannert School of Management [West Lafayette] - Purdue University [West Lafayette], EM - EMLyon Business School)

  • Frédéric Delmar

    (EM - EMLyon Business School)

  • Karl Wennberg

    (Imperial College Business School, SSE - Stockholm School of Economics)

Abstract

In contrast to previous efforts to model an individual's movement from wage work into entrepreneurship, we consider that individuals might transition incrementally by retaining their wage job while entering into self-employment. We show that these hybrid entrepreneurs represent a significant share of all entrepreneurial activity. Theoretical arguments are proposed to suggest why hybrid entrants are distinct from self-employment entrants, and why hybrid entry may facilitate subsequent entry into full self-employment. We demonstrate that there are significant theoretical and empirical consequences for this group and our understanding of selfemployment entry and labor market dynamics. Using matched employee–employer data over eight years, we test the model on a population of Swedish wage earners in the knowledge-intensive sector.

Suggested Citation

  • Timothy Folta & Frédéric Delmar & Karl Wennberg, 2010. "Hybrid entrepreneurship," Post-Print hal-02312556, HAL.
    • Handle: RePEc:hal:journl:hal-02312556
    DOI: 10.1287/mnsc.1090.1094
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    JEL classification:

    • H39 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Other
    • 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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