The experience of the founder and self-employment duration

Abstract

"This paper investigates how the initial experience of a founder affects self-employment duration in a competing risks setting. The analysis uses survey data that provide new perspectives on the role of the founder's experience. The analysis concentrates on the importance of a balanced skill set for self-employment duration. The results show that most self-employed individuals find themselves unemployed upon ending their self-employment. Firm-level characteristics are less significant in explaining selfemployment duration, while experience and motivation appear to be driving forces for self-employment longevity. The findings support the importance of combined practical experience and adequate skills. Having broad experience combined with competence in sales/business is one of the most important factors for self-employment duration. Contrary to most other studies, the results show that previous self-employment experience is associated with early exits." (Author's abstract, IAB-Doku) ((en))

Cite article

Oberschachtsiek, D. (2012): The experience of the founder and self-employment duration. A comparative advantage approach. In: Small business economics, Vol. 39, No. 1, p. 1-17. DOI:10.1007/s11187-010-9288-1