The strength of a good example: How important are role models for early-stage entrepreneurs?
The decision to become an entrepreneur is in essence an individual decision. But even when the endowments of inhabitants are taken into account, some regions have persistently higher entrepreneurship rates than others. Proposed explanations for this regional variation are numerous: market potential, unemployment rates, knowledge spillovers and agglomeration effects. Regional differences in entrepreneurship have also been linked to the availability of role models (Fornahl 2003; Sternberg 2009; Malecki 2009). It can be argued that in regions with high rates of entrepreneurship, entrepreneurial role models are abundant. These role models may serve as good examples of entrepreneurial activity and inspire individuals in the region to become entrepreneurs or attract other entrepreneurs to the region, thereby reinforcing the entrepreneurial process. We take a new approach by combining existing approaches, i.e., the geographical and individual-level studies of entrepreneurship in empirically exploring the importance of role models for early-stage entrepreneurship. We use a rich data set of over 300 owner-managers of young firms across four different sectors for three regions in the Netherlands. For each of the regions, a random sample was drawn from the registration data base of the Dutch Chamber of Commerce. Semi-structured interviews were held with entrepreneurs in Utrecht, Amsterdam and Rotterdam between March and October 2009. The first descriptive results suggest that role models are indeed an important phenomenon that deserves further attention. About 45% of the entrepreneurs indicated that the start-up decision was influenced by another entrepreneur, mostly by providing a positive example. Some 70% of these respondents have received tangible support from these exemplar entrepreneurs at start-up, whereas 40% indicate that they would not have started the business if they would not have had this example. So, according to the respondents, role models are important and our first analyses seem to support the idea that entrepreneur characteristics affect the value attached to specific types of role model. These results have implications for the organization, timing and target group of support initiatives, network meetings and the involvement of specific established (regional) exemplar entrepreneurs in the early-stage entrepreneurship arena.
|Date of creation:||Sep 2011|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.ersa.org
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.:
- 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.
- Koellinger, Philipp & Minniti, Maria & Schade, Christian, 2007.
""I think I can, I think I can": Overconfidence and entrepreneurial behavior,"
Journal of Economic Psychology,
Elsevier, vol. 28(4), pages 502-527, August.
- Philipp Köllinger & Maria Minniti & Christian Schade, 2005. ""I Think I Can, I Think I Can": Overconfidence and Entrepreneurial Behavior," Discussion Papers of DIW Berlin 501, DIW Berlin, German Institute for Economic Research.
- Parker, Simon C. & van Praag, C. Mirjam, 2006. "Schooling, Capital Constraints, and Entrepreneurial Performance: The Endogenous Triangle," Journal of Business & Economic Statistics, American Statistical Association, vol. 24, pages 416-431, October.
- Barton H. Hamilton, 2000. "Does Entrepreneurship Pay? An Empirical Analysis of the Returns to Self-Employment," Journal of Political Economy, University of Chicago Press, vol. 108(3), pages 604-631, June.
- P. Mueller, 2006. "Entrepreneurship in the Region: Breeding Ground for Nascent Entrepreneurs?," Small Business Economics, Springer, vol. 27(1), pages 41-58, August.
- Ramana Nanda & Jesper B. Sørensen, 2010. "Workplace Peers and Entrepreneurship," Management Science, INFORMS, vol. 56(7), pages 1116-1126, July.
- Nicos Nicolaou & Scott Shane & Lynn Cherkas & Janice Hunkin & Tim D. Spector, 2008. "Is the Tendency to Engage in Entrepreneurship Genetic?," Management Science, INFORMS, vol. 54(1), pages 167-179, January.
- Schutjens, Veronique & Stam, Erik, 2003. " The Evolution and Nature of Young Firm Networks: A Longitudinal Perspective," Small Business Economics, Springer, vol. 21(2), pages 115-34, September.
- C. Mirjam van Praag & Peter H. Versloot, 2007.
"What is the Value of Entrepreneurship? A Review of Recent Research,"
Jena Economic Research Papers
2007-061, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
- C. Praag & Peter Versloot, 2007. "What is the value of entrepreneurship? A review of recent research," Small Business Economics, Springer, vol. 29(4), pages 351-382, December.
- van Praag, Mirjam C. & Versloot, Peter H., 2007. "What Is the Value of Entrepreneurship? A Review of Recent Research," IZA Discussion Papers 3014, Institute for the Study of Labor (IZA).
- C. Mirjam van Praag & Peter H. Versloot, 2007. "What is the Value of Entrepreneurship? A Review of Recent Research," Tinbergen Institute Discussion Papers 07-066/3, Tinbergen Institute.
- KruegerJR, Norris F. & Reilly, Michael D. & Carsrud, Alan L., 2000. "Competing models of entrepreneurial intentions," Journal of Business Venturing, Elsevier, vol. 15(5-6), pages 411-432.
- Thomas Dunn & Douglas Holtz-Eakin, 1996. "Financial Capital, Human Capital, and the Transition to Self-Employment:Evidence from Intergenerational Links," NBER Working Papers 5622, National Bureau of Economic Research, Inc.
- Simeon Djankov & Yingyi Qian & Gérard Roland & Ekaterina Zhuravskaya, 2006.
"Entrepreneurship in China and Russia Compared,"
Journal of the European Economic Association,
MIT Press, vol. 4(2-3), pages 352-365, 04-05.
- Djankov, Simeon & Qian, Yingyi & Roland, Gérard & Zhuravskaya, Ekaterina, 2006. "Entrepreneurship in China and Russia Compared," CEPR Discussion Papers 5705, C.E.P.R. Discussion Papers.
- Simeon Djankov & Yingyi Qian & Gerard Roland & Ekaterina Zhuravskaya, 2005. "Entrepreneurship in China and Russia Compared," Working Papers w0049, Center for Economic and Financial Research (CEFIR).
- Michael Hout & Harvey Rosen, 2000.
"Self-Employment, Family Background, and Race,"
Journal of Human Resources,
University of Wisconsin Press, vol. 35(4), pages 670-692.
- Minniti, Maria, 2005. "Entrepreneurship and network externalities," Journal of Economic Behavior & Organization, Elsevier, vol. 57(1), pages 1-27, May.
- Blanchflower, D.G. & Oswald, A., 1991.
"What Makes an Entrepreneur?,"
Economics Series Working Papers
99125, University of Oxford, Department of Economics.
- Hartog, Joop & van Praag, Mirjam C. & van der Sluis, Justin, 2008.
"If You Are So Smart, Why Aren't You an Entrepreneur? Returns to Cognitive and Social Ability: Entrepreneurs versus Employees,"
IZA Discussion Papers
3648, Institute for the Study of Labor (IZA).
- Joop Hartog & Mirjam Van Praag & Justin Van Der Sluis, 2010. "If You Are So Smart, Why Aren't You an Entrepreneur? Returns to Cognitive and Social Ability: Entrepreneurs Versus Employees," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 19(4), pages 947-989, December.
- Joop Hartog & Mirjam van Praag & Justin van der Sluis, 2008. "If you are so smart, why aren't you an entrepreneur? Returns to cognitive and social ability: Entrepreneurs versus employees," Jena Economic Research Papers 2008-084, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
- 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," IZA Discussion Papers 2168, Institute for the Study of Labor (IZA).
- 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.
- Pia Arenius & Dirk Clercq, 2005. "A Network-based Approach on Opportunity Recognition," Small Business Economics, Springer, vol. 24(3), pages 249-265, 02.
- Esteban Lafuente & Yancy Vaillant & Josep Rialp, 2007. "Regional Differences in the Influence of Role Models: Comparing the Entrepreneurial Process of Rural Catalonia," Regional Studies, Taylor & Francis Journals, vol. 41(6), pages 779-796.
- Ozgen, Eren & Baron, Robert A., 2007. "Social sources of information in opportunity recognition: Effects of mentors, industry networks, and professional forums," Journal of Business Venturing, Elsevier, vol. 22(2), pages 174-192, March.
- Ajzen, Icek, 1991. "The theory of planned behavior," Organizational Behavior and Human Decision Processes, Elsevier, vol. 50(2), pages 179-211, December.
When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa10p531. 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: (Gunther Maier)
If references are entirely missing, you can add them using this form.