TY - JOUR
T1 - Job Creation by the Self-employed: The Roles of Entrepreneurial and Financial Capital
AU - Henley, Andrew
PY - 2005/9/1
Y1 - 2005/9/1
N2 - The paper reports micro-econometric evidence on the factors that influence the ability of the small businesses to create employment. It uses data on self-employment from a British panel survey. In particular it investigates the contributions of financial and entrepreneurial capital to job creation. Housing wealth appears to be significantly associated with small business job creation. It appears to act as an important source of financial collateral. The parental background of the small business owner is also significantly associated with job creation. Successful entrepreneurs are more likely to have had self-employed parents, and in particular parents who employed others. Educational attainment, in particular at degree level, is also important. The preferred model incorporates individual random effects and the significance of these suggests the importance of unobserved latent entrepreneurial ability.
AB - The paper reports micro-econometric evidence on the factors that influence the ability of the small businesses to create employment. It uses data on self-employment from a British panel survey. In particular it investigates the contributions of financial and entrepreneurial capital to job creation. Housing wealth appears to be significantly associated with small business job creation. It appears to act as an important source of financial collateral. The parental background of the small business owner is also significantly associated with job creation. Successful entrepreneurs are more likely to have had self-employed parents, and in particular parents who employed others. Educational attainment, in particular at degree level, is also important. The preferred model incorporates individual random effects and the significance of these suggests the importance of unobserved latent entrepreneurial ability.
UR - http://hdl.handle.net/2160/9194
U2 - 10.1007/s11187-004-6480-1
DO - 10.1007/s11187-004-6480-1
M3 - Article
SN - 0921-898X
VL - 25
SP - 175
EP - 196
JO - Small Business Economics
JF - Small Business Economics
IS - 2
ER -