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

Content Provider	Springer Nature Link
Author	Petrova, Kameliia
Copyright Year	2010
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.
Starting Page	473
Ending Page	493
Page Count	21
File Format	PDF
ISSN	0921898X
Journal	Small Business Economics
Volume Number	39
Issue Number	2
e-ISSN	15730913
Language	English
Publisher	Springer US
Publisher Date	2010-12-29
Publisher Place	Boston
Access Restriction	One Nation One Subscription (ONOS)
Subject Keyword	Entrepreneurial entry Part-time entrepreneurship Full-time entrepreneurship Wage employment Nascent entrepreneurs Financial constraints Industrial Organization Entrepreneurship Microeconomics Management/Business for Professionals
Content Type	Text
Resource Type	Article
Subject	Economics and Econometrics Business, Management and Accounting

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