A theory of serial entrepreneurship
Authors: ['Jose Plehn-Dujowich']
Year: 2009
Methodology
- Design: theoretical_modeling
- Data: Literature review, Economic modeling, Secondary citations (Parker 2004, Jovanovic 1994)
Factors Extracted (5)
Prior entrepreneurial experience (Serial Entrepreneurship) [strong] — Positive correlation with firm survival
Founder Skill Level [strong] — High-skill founders iterate through ventures; low-skill exit to labor market
Startup Capital [moderate] — Increase in capital promotes new firm formation and survival
Serial Startup Cost [moderate] — Lower costs increase the number of serial entrepreneurs and firm formation
Opportunity Cost (Exogenous Wage) [moderate] — Lower market wages increase entrepreneurship rates
Key Findings
- High-skill entrepreneurs treat business failure as an iterative process, closing low-quality ventures to launch new ones until a high-quality match is found.
- Serial entrepreneurs contribute significantly to the economy, representing 18–30% of entrepreneurs in Europe and approximately 12.5% in the US.
- The model demonstrates that firm failure is not synonymous with entrepreneurial exit; for high-skill individuals, it is a transition to a subsequent venture.
Limitations
- The study is primarily a theoretical economic model rather than an empirical data-driven analysis.
- The model assumes an exogenous wage for the labor market which may not reflect real-world fluctuations.
- The effect of serial entrepreneurship on the overall exit rate of new firms remains theoretically ambiguous.
Extracted by lib/ingest/literature_review.py via gemini-flash