What Makes an Entrepreneur? Evidence on Inheritance and Capital Constraints
The paper studies the factors which shape entrepreneurship among young adults. It finds, using data on a British birth cohort, that the probability of self-employment depends sensitively upon whether the individual ever received a gift or inheritance. Those who were given or inherited £5,000, for example, were approximately twice as likely, ceteris paribus, to set up in business. This is consistent with, and a new test of, recent results from the US stressing the importance of capital and liquidity constraints. The paper also evaluates a number of hypotheses suggested in the literature on small businesses.
|Date of creation:||Feb 1990|
|Date of revision:|
|Publication status:||published as Blanchflower, David G. and Andrew J. Oswald. "What Makes An Entrepreneur?," Journal of Labor Economics, 1998, v16(1,Jan), 26-60.|
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NBER Working Papers
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NBER Working Papers
1942, National Bureau of Economic Research, Inc.
- Micklewright, John, 1989. "Choice at Sixteen," Economica, London School of Economics and Political Science, vol. 56(221), pages 25-39, February.
- Evans, David S & Leighton, Linda S, 1989. "Some Empirical Aspects of Entrepreneurship," American Economic Review, American Economic Association, vol. 79(3), pages 519-35, June.
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