Small Business Economics

, Volume 23, Issue 1, pp 41–49 | Cite as

Are All the Potential Entrepreneurs So Good?

  • Marco Vivarelli
Article

Abstract

While the vast economic literature on entry has been recently accompanied by a growing literature on the post-entry performance of newborn firms, still few studies propose a connection between the two phenomena.

Exploiting the opportunity of using data concerning potential entrepreneurs, this study attempts to relate ex-ante economic, individual and environmental features to both the decision to start a new firm and – in the case of actual foundation – to the post-entry performance exhibited by the newborn firm.

Empirical results based on 365 Italian potential founders show that entrepreneurial projects based on a rich information set, a first-best choice and on self commitment are more likely to develop into actual startups and better post-entry performances.

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Copyright information

© Kluwer Academic Publishers 2004

Authors and Affiliations

  • Marco Vivarelli
    • 1
  1. 1.Università Cattolica, Facoltà di EconomiaPiacenzaItaly

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