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Are nonprofit entrepreneurs also Jacks-of-all-trades?

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  • Cho, Insoo
  • Orazem, Peter F.

Abstract

We investigate whether nonprofit and for-profit entrepreneurs share similar observable and unobservable skills. In JLE 23:649-680, 2005 ‘Jacks-of-all-Trades’ model of entrepreneurship, individuals with more diverse academic and occupational training are more likely to become entrepreneurs, while more narrowly trained individuals become employees. Data on college graduates from a single university show that observed diverse skills increase the probability that the graduate will open both for-profit and nonprofit venture. Positive correlation in the errors that jointly affect for-profit and nonprofit start-ups is consistent with the existence of an unobserved entrepreneurial skill, a key factor underlying Lazear’s theory.

Suggested Citation

  • Cho, Insoo & Orazem, Peter F., 2014. "Are nonprofit entrepreneurs also Jacks-of-all-trades?," ISU General Staff Papers 201407010700001056, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:201407010700001056
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    More about this item

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs; Social Entrepreneurship
    • M5 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics

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