Work

When Do Employees Leave Their Job for Entrepreneurship?*

Year: 2008

Type: article

Abstract: Existing firms are argued to be an important source of new entrepreneurs. Yet, relatively little is known about the characteristics of firms that breed new entrepreneurs. We use a large linked employee–employer dataset to trace and characterize the types of firms which generate new entrepreneurs in Finland. We find that such transitions are rare and that smaller firms spawn new entrepreneurs more frequently than larger firms. We also find that firms' R&D intensity and, to a lesser extent, their productivity are negatively related to the probability that employees transit into entrepreneurship. These results are robust to controlling for a number of employee and employer attributes.

Source: Scandinavian Journal of Economics

DOI: 10.1111/j.1467-9442.2008.00522.x

Authors: Ari Hyytinen, Mika Maliranta

Institutions: University of Jyväskylä, Research Institute of the Finnish Economy

Language: English

Topic: Entrepreneurship Studies and Influences

Subfield: Management of Technology and Innovation

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: bronze

Funder: Tekes