This paper is analyzes a neoclassical overlapping generations model. We discuss a two-sector economy with intermediate and final goods in the spirit of Romer (1990). Agents engage in one of two alternative occupations: either self–employment in the intermediate goods sector, which is characterized by monopolistic competition, or employment as an ordinary worker in this sector. Entrepreneurial p...

The wireless Internet industry is only in the beginning of its’ innovative evolution. The structure and roles of the companies active in the industry are far from settled and the entrepreneurial activity in the area is very strong. For new ventures in emerging industries rapid learning is key. Opportunistic adaptation and strategy formation is likely to be characterized by frequent changes in t...

After a decade of widespread attention for the entrepreneurial efforts of individuals, the focus seems to partly shift to companies and their contribution to new firm formation. Splitting new firm formation in a birth rate for spin-offs and one for start-ups, allows a structural and comparative analysis of regions and their spin-off activities. In the Netherlands, the Chamber of Commerce has de...

The aim of the paper is to investigate the effect of previous co-worker experience on the survival of new established firms. For the empirical analysis I use the Danish Integrated Database of Labor Market Research (IDA). This longitudinal employer-employee database allows me to identify co-worker experience among all members of the firm. In addition, I will make a distinction between ordinary s...

Science parks provide an environmental setting for private venture development in the close proximity of universities and can be seen as an environment enabling private and public research units to collaborate. Science parks are assumed to be first and foremost knowledge catalysts aiming at high technology and knowledge intensive venture development through shared knowledge creation between uni...

Effectual entrepreneurship research has played a big role in deepening the understanding of the entrepreneurial process. While effectuation theory has originally been focused on discovering entrepreneurial opportunities and the early creation of new venture, it may well have applications also in the phase where companies open new international markets. This study first compares effectuation the...

This paper analyzes a model in which the risk associated with entrepreneurial activity implies that the amount of such activity is procyclical and results in both amplification and intertemporal propagation of productivity shocks. In the model risk averse agents choose between a riskless project and a risky project with higher expected return (‘the entrepreneurial activity’). Agents who choose ...

Entrepreneurs face significant non-diversifiable idiosyncratic business risks. In a dynamic incomplete-markets model of entrepreneurial finance, we show that such risks have important implications for their interdependent consumption/saving, portfolio choice, financing, investment, and endogenous default/cash-out decisions. Even though more risk-averse entrepreneurs default earlier for given de...

This paper explores the effect of asymmetric information and entrepreneurial risk aversion on the dynamics of a small open economy. A private equity premium arises from the optimal contract between a domestic risk-averse borrower and a foreign lender, which, in general equilibrium, helps magnify the effect of shocks over time. In terms of an exchange rate regime comparison, when entrepreneurial...

Entrepreneurial ventures rely not only on founders, but also on “joiners” – startup employees who are attracted to entrepreneurship but do not want to be founders themselves. Drawing upon both individual and contextual-level perspectives of entrepreneurship, we examine how interests in being a founder or a joiner form prior to the first career transition. We find that individuals with founder a...