Is Entrepreneurial Success Predictable? An Ex-Ante Analysis of the Character-Based Approach
This paper empirically analyzes whether the character-based approach, which focuses on the personality structure and the human capital of business founders, allows prediction of entrepreneurial success. A unique data set is used consisting of 414 persons whose personal characteristics were analyzed by different methods, namely an one-day assessment center (AC) and a standardized questionnaire, before they launched their business. Results are partly unexpected and weaker than previous ex-post findings: first, we found correlations between the AC data and the questionnaire in one subgroup only. Second, the predictive power of the AC data is slightly better than that of the questionnaire, but lower than expected in theory. Interestingly, for those subgroups where the AC data have low predictive power, the questionnaire does better. Third, when success is measured in terms of employees hired, the character-based approach is a poor predictor.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Wagner, Joachim, 2002.
"Testing Lazear’s Jack-of-All-Trades View of Entrepreneurship with German Micro Data,"
IZA Discussion Papers
592, Institute for the Study of Labor (IZA).
- J. Wagner, 2003. "Testing Lazear's jack-of-all-trades view of entrepreneurship with German micro data," Applied Economics Letters, Taylor & Francis Journals, vol. 10(11), pages 687-689.
- Marco Caliendo & Frank Fossen & Alexander Kritikos, 2009.
"Risk attitudes of nascent entrepreneurs–new evidence from an experimentally validated survey,"
Small Business Economics,
Springer, vol. 32(2), pages 153-167, February.
- Caliendo, Marco & Fossen, Frank M. & Kritikos, Alexander S., 2006. "Risk Attitudes of Nascent Entrepreneurs: New Evidence from an Experimentally Validated Survey," Discussion Papers 252, European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics.
- Marco Caliendo & Frank M. Fossen & Alexander S. Kritikos, 2006. "Risk Attitudes of Nascent Entrepreneurs: New Evidence from an Experimentally-Validated Survey," Discussion Papers of DIW Berlin 600, DIW Berlin, German Institute for Economic Research.
- Caliendo, Marco & Fossen, Frank M. & Kritikos, Alexander S., 2006. "Risk Attitudes of Nascent Entrepreneurs: New Evidence from an Experimentally-Validated Survey," IZA Discussion Papers 2168, Institute for the Study of Labor (IZA).
- Blanchflower, David G & Oswald, Andrew J, 1998.
"What Makes an Entrepreneur?,"
Journal of Labor Economics,
University of Chicago Press, vol. 16(1), pages 26-60, January.
- Begley, Thomas M. & Boyd, David P., 1987. "Psychological characteristics associated with performence in entrepreneurial firms and smaller businesses," Journal of Business Venturing, Elsevier, vol. 2(1), pages 79-93.
- Marco Caliendo & Alexander S. Kritikos & Frank Wießner, 2006.
"Existenzgründungsförderung in Deutschland: Zwischenergebnisse aus der Hartz-Evaluation,"
0006, Gesellschaft für Arbeitsmarktaktivierung (GfA).
- Caliendo, Marco & Kritikos, Alexander S. & Wießner, Frank, 2006. "Existenzgründungsförderung in Deutschland: Zwischenergebnisse aus der Hartz-Evaluation," Discussion Papers 253, European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics.
- Dunn, Thomas & Holtz-Eakin, Douglas, 2000. "Financial Capital, Human Capital, and the Transition to Self-Employment: Evidence from Intergenerational Links," Journal of Labor Economics, University of Chicago Press, vol. 18(2), pages 282-305, April.
- Holmes, Thomas J & Schmitz, James A, Jr, 1990.
"A Theory of Entrepreneurship and Its Application to the Study of Business Transfers,"
Journal of Political Economy,
University of Chicago Press, vol. 98(2), pages 265-94, April.
- Bonnett, Celia & Furnham, Adrian, 1991. "Who wants to be an entrepreneur? A study of adolescents interested in a Young Enterprise scheme," Journal of Economic Psychology, Elsevier, vol. 12(3), pages 465-478, September.
- Milo Bianchi & Magnus Henrekson, 2005.
"Is Neoclassical Economics still Entrepreneurless?,"
Wiley Blackwell, vol. 58(3), pages 353-377, 07.
- Bianchi, Milo & Henrekson, Magnus, 2005. "Is Neoclassical Economics still Entrepreneurless?," SSE/EFI Working Paper Series in Economics and Finance 584, Stockholm School of Economics, revised 02 Feb 2005.
- Hartog, Joop & Ferrer-i-Carbonell, Ada & Jonker, Nicole, 2002. "Linking Measured Risk Aversion to Individual Characteristics," Kyklos, Wiley Blackwell, vol. 55(1), pages 3-26.
- Edward P. Lazear, 2004. "Balanced Skills and Entrepreneurship," American Economic Review, American Economic Association, vol. 94(2), pages 208-211, May.
- Evans, David S & Jovanovic, Boyan, 1989. "An Estimated Model of Entrepreneurial Choice under Liquidity Constraints," Journal of Political Economy, University of Chicago Press, vol. 97(4), pages 808-27, August.
- Brandstatter, Hermann, 1997. "Becoming an entrepreneur -- A question of personality structure?," Journal of Economic Psychology, Elsevier, vol. 18(2-3), pages 157-177, April.
- Kihlstrom, Richard E & Laffont, Jean-Jacques, 1979. "A General Equilibrium Entrepreneurial Theory of Firm Formation Based on Risk Aversion," Journal of Political Economy, University of Chicago Press, vol. 87(4), pages 719-48, August.
When requesting a correction, please mention this item's handle: RePEc:phu:wpaper:001. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Frank Waldau)The email address of this maintainer does not seem to be valid anymore. Please ask Frank Waldau to update the entry or send us the correct address
If references are entirely missing, you can add them using this form.