Part-time entrepreneurship and financial constraints: evidence from the Panel Study of Entrepreneurial Dynamics

Part-time entrepreneurship and financial constraints: evidence from the Panel Study of... To date, entrepreneurship literature overlooks part-time entrepreneurs, i.e., those who devote time to entrepreneurial ventures and wage employment at the same time. In contrast, recent evidence from the Global Entrepreneurship Monitor, a large cross-national study on the level of entrepreneurial activity, establishes that 80% of nascent entrepreneurs also hold regular wage jobs. This paper offers a model of entrepreneurial entry under financial constraints where individuals choose between wage employment, part-time, and full-time entrepreneurship. Those who become nascent entrepreneurs must further decide how much capital to invest and what proportion of time to spend in business. I test this model using data from the Panel Study of Entrepreneurial Dynamics, which covers start-ups and nascent entrepreneurs. My findings show that part-time entrepreneurs are not affected by financial constraints. The analysis suggests that industry barriers, risk aversion, and learning by doing might be other factors worth investigating. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Small Business Economics Springer Journals

Part-time entrepreneurship and financial constraints: evidence from the Panel Study of Entrepreneurial Dynamics

Loading next page...
 
/lp/springer_journal/part-time-entrepreneurship-and-financial-constraints-evidence-from-the-VSJjANXJl0
Publisher
Springer Journals
Copyright
Copyright © 2010 by Springer Science+Business Media, LLC.
Subject
Business and Management; Management; Microeconomics; Entrepreneurship; Industrial Organization
ISSN
0921-898X
eISSN
1573-0913
D.O.I.
10.1007/s11187-010-9310-7
Publisher site
See Article on Publisher Site

Abstract

To date, entrepreneurship literature overlooks part-time entrepreneurs, i.e., those who devote time to entrepreneurial ventures and wage employment at the same time. In contrast, recent evidence from the Global Entrepreneurship Monitor, a large cross-national study on the level of entrepreneurial activity, establishes that 80% of nascent entrepreneurs also hold regular wage jobs. This paper offers a model of entrepreneurial entry under financial constraints where individuals choose between wage employment, part-time, and full-time entrepreneurship. Those who become nascent entrepreneurs must further decide how much capital to invest and what proportion of time to spend in business. I test this model using data from the Panel Study of Entrepreneurial Dynamics, which covers start-ups and nascent entrepreneurs. My findings show that part-time entrepreneurs are not affected by financial constraints. The analysis suggests that industry barriers, risk aversion, and learning by doing might be other factors worth investigating.

Journal

Small Business EconomicsSpringer Journals

Published: Dec 29, 2010

References

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Search

Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly

Organize

Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.

Access

Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

DeepDyve

Freelancer

DeepDyve

Pro

Price

FREE

$49/month
$360/year

Save searches from
Google Scholar,
PubMed

Create lists to
organize your research

Export lists, citations

Read DeepDyve articles

Abstract access only

Unlimited access to over
18 million full-text articles

Print

20 pages / month

PDF Discount

20% off