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Learning entrepreneurship from other entrepreneurs?

Author: Luigi Guiso; Luigi Pistaferri; Fabiano Schivardi; National Bureau of Economic Research,
Publisher: Cambridge, Mass. : National Bureau of Economic Research, 2015.
Series: Working paper series (National Bureau of Economic Research), no. 21775.
Edition/Format:   eBook : Document : EnglishView all editions and formats
Summary:
We document that individuals who grew up in areas with high density of firms are more likely, as adults, to become entrepreneurs, controlling for the density of firms in their current location. Conditional on becoming entrepreneurs, the same individuals are also more likely to be successful entrepreneurs, as measured by business income or firm productivity. Strikingly, firm density at entrepreneur's young age is  Read more...
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Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Luigi Guiso; Luigi Pistaferri; Fabiano Schivardi; National Bureau of Economic Research,
OCLC Number: 934518071
Notes: "December 2015"
Description: 1 online resource (51 pages) : illustrations.
Series Title: Working paper series (National Bureau of Economic Research), no. 21775.
Responsibility: Luigi Guiso, Luigi Pistaferri, Fabiano Schivardi.

Abstract:

We document that individuals who grew up in areas with high density of firms are more likely, as adults, to become entrepreneurs, controlling for the density of firms in their current location. Conditional on becoming entrepreneurs, the same individuals are also more likely to be successful entrepreneurs, as measured by business income or firm productivity. Strikingly, firm density at entrepreneur's young age is more important than current firm density for business performance. These results are not driven by better access to external finance or intergenerational occupation choices. They are instead consistent with entrepreneurial capabilities being at least partly learnable through social contacts. In keeping with this interpretation, we find that entrepreneurs who at the age of 18 lived in areas with a higher firm density tend to adopt better managerial practices (enhancing productivity) later in life.

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