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Exploiting opportunities at all cost? Entrepreneurial intent and externalities

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  • D. Urbig
  • G.U. Weitzel
  • S. Rosenkranz
  • A. van Witteloostuijn

Abstract

they exploit welfare-enhancing opportunities as it is assumed in several normative models? Do we need to prevent potential entrepreneurs from being destructive or are there intrinsic limits to harm others? We experimentally investigate how people with different entrepreneurial intent exploit risky investment opportunities that are associated with negative and positive externalities. We find that participants who consider entrepreneurship as a future occupation invest significantly less than others in destructive opportunities. Nevertheless, our results support prior evidence that the entrepreneurially talented invest more in destructive opportunities. The latter effect seems to be entrepreneurship-specific, because the investment behavior of the generally more talented does not differ from that of other participants. Taken together, our results suggest that people who are willing to exploit destructive opportunities do not only do this in private ventures, but also – and maybe even more so – in wage employment.

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  • D. Urbig & G.U. Weitzel & S. Rosenkranz & A. van Witteloostuijn, 2011. "Exploiting opportunities at all cost? Entrepreneurial intent and externalities," Working Papers 11-05, Utrecht School of Economics.
  • Handle: RePEc:use:tkiwps:1105
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    Cited by:

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    2. Petra Dickel & Monika Sienknecht & Jacob Hörisch, 2021. "The early bird catches the worm: an empirical analysis of imprinting in social entrepreneurship," Journal of Business Economics, Springer, vol. 91(2), pages 127-150, March.
    3. Brunella Arru, 2020. "An integrative model for understanding the sustainable entrepreneurs’ behavioural intentions: an empirical study of the Italian context," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(4), pages 3519-3576, April.
    4. Caliendo, Marco & Kritikos, Alexander S., 2011. "Searching for the Entrepreneurial Personality: New Evidence and Avenues for Further Research," IZA Discussion Papers 5790, Institute of Labor Economics (IZA).
    5. Burmeister-Lamp, Katrin & Lévesque, Moren & Schade, Christian, 2012. "Are entrepreneurs influenced by risk attitude, regulatory focus or both? An experiment on entrepreneurs' time allocation," Journal of Business Venturing, Elsevier, vol. 27(4), pages 456-476.
    6. Diemo Urbig & Werner Bönte & Vivien D. Procher & Sandro Lombardo, 2020. "Entrepreneurs embrace competition: evidence from a lab-in-the-field study," Small Business Economics, Springer, vol. 55(1), pages 193-214, June.
    7. Mohamed Buheji, 2018. "The Art of Capturing Opportunities — Screening Arab Social Entrepreneurs," Post-Print halshs-01820426, HAL.
    8. Katrin Muehlfeld & Diemo Urbig & Utz Weitzel, 2017. "Entrepreneurs’ Exploratory Perseverance in Learning Settings," Entrepreneurship Theory and Practice, , vol. 41(4), pages 533-565, July.
    9. Tucker, Reginald & Zuo, Lu & Marino, Louis D. & Lowman, Graham H. & Sleptsov, Alexander, 2021. "ADHD and entrepreneurship: Beyond person-entrepreneurship fit," Journal of Business Venturing Insights, Elsevier, vol. 15(C).
    10. Bittschi, Benjamin & Borgloh, Sarah & Moessinger, Marc-Daniel, 2016. "On tax evasion, entrepreneurial generosity and fungible assets," ZEW Discussion Papers 16-024, ZEW - Leibniz Centre for European Economic Research.
    11. Dave Valliere, 2016. "Measuring Regional Variations of Entrepreneurial Intent in India," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 25(2), pages 111-128, September.
    12. Michela Loi & Maria Chiara Di Guardo, 2015. "A Start-Up Generation Approach For Teaching Entrepreneurship: An Overview Of Affective Learning Results," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 20(04), pages 1-16, December.
    13. Sameeksah Desai & Zoltán J. Ács & Utz Weitzel, 2015. "A Model of Destructive Entrepreneurship: Insight for Conflict and Postconflict Recovery," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 1, pages 3-23, Edward Elgar Publishing.
    14. Lee, Seung-Hyun & Peng, Mike W. & Song, Sangcheol, 2013. "Governments, entrepreneurs, and positive externalities: A real options perspective," European Management Journal, Elsevier, vol. 31(4), pages 333-347.
    15. Yalcintas, Murat & Iyigun, Oykü & Karabulut, Gokhan, 2021. "Personal Characteristics and Intention for Entrepreneurship," GLO Discussion Paper Series 808, Global Labor Organization (GLO).
    16. Matthew Fuhrmann, 2020. "When Do Leaders Free‐Ride? Business Experience and Contributions to Collective Defense," American Journal of Political Science, John Wiley & Sons, vol. 64(2), pages 416-431, April.

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    More about this item

    Keywords

    Social Psychology; Entrepreneurship; Externalities; Laboratory; Individual Behavior;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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