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Hybrid Entrepreneurship

  • Folta, Timothy B.

    ()

    (Krannert School of Management)

  • Delmar, Frédéric

    ()

    (Research Institute of Industrial Economics (IFN))

  • Wennberg, Karl

    ()

    (Imperial College Business School)

In contrast to previous efforts to model the 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 self-employment 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.

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Paper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 825.

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Length: 39 pages
Date of creation: 11 Mar 2010
Date of revision:
Publication status: Published as Folta, Timothy B., Frédéric Delmar and Karl Wennberg, 'Hybrid Entrepreneurship' in Management Science, 2010, pages 253-269.
Handle: RePEc:hhs:iuiwop:0825
Contact details of provider: Postal: Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden
Phone: +46 8 665 4500
Fax: +46 8 665 4599
Web page: http://www.ifn.se/
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