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The Effect of Prior Employer Firm Size on Entrepreneurs' Skills

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  • Tsuchiya, Ryuichiro

Abstract

Although the entrepreneurial performance has been the main subject in entrepreneurial studies, little research has been attempted on its link with the entrepreneur's prior employer firm. In this study, we examined a relationship between employer firm size and post-entry self-employment performances. In startups, entrepreneurs should be "jacks-of-all-trades". Less definite division of labor in small business allows potential entrepreneurs to be generalists, producing more productive entrepreneurs. If that is the case, in manufacturing, in which interdependencies between production factors are strong, the necessity for being generalists is greater than in other industries. Our empirical investigation employed a rich data set representing the entire Taiwanese labor market, and confirmed hypotheses.

Suggested Citation

  • Tsuchiya, Ryuichiro, 2006. "The Effect of Prior Employer Firm Size on Entrepreneurs' Skills," Discussion Papers 2006-16, Graduate School of Economics, Hitotsubashi University.
  • Handle: RePEc:hit:econdp:2006-16
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    File URL: http://hermes-ir.lib.hit-u.ac.jp/rs/bitstream/10086/16966/1/070econDP06-16.pdf
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    References listed on IDEAS

    as
    1. Rafik Abdesselam & Jean Bonnet & Nicolas Le Pape, 2004. "An Explanation of the Life Span of New French Firms," Small Business Economics, Springer, vol. 23(3), pages 237-254, October.
    2. McPherson, Michael A., 1996. "Growth of micro and small enterprises in southern Africa," Journal of Development Economics, Elsevier, vol. 48(2), pages 253-277, March.
    3. Luis Garicano & Thomas N. Hubbard, 2003. "Firms' Boundaries and the Division of Labor: Empirical Strategies," Journal of the European Economic Association, MIT Press, vol. 1(2-3), pages 495-502, 04/05.
    4. Holtz-Eakin, Douglas & Joulfaian, David & Rosen, Harvey S, 1994. "Sticking It Out: Entrepreneurial Survival and Liquidity Constraints," Journal of Political Economy, University of Chicago Press, vol. 102(1), pages 53-75, February.
    5. Bates, Timothy, 1990. "Entrepreneur Human Capital Inputs and Small Business Longevity," The Review of Economics and Statistics, MIT Press, vol. 72(4), pages 551-559, November.
    6. Audretsch, David B. & Keilbach, Max C. & Lehmann, Erik E., 2006. "Entrepreneurship and Economic Growth," OUP Catalogue, Oxford University Press, number 9780195183511.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Entrepreneurship; Firm Size; Entrepreneurial Human Capital; Entrepreneurial Skill; Spin-off;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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