The Small Firm Effect and the Entrepreneurial Spawning of Scientists and Engineers

@article{Elfenbein2010TheSF,
  title={The Small Firm Effect and the Entrepreneurial Spawning of Scientists and Engineers},
  author={Daniel W. Elfenbein and Barton H. Hamilton and Todd R. Zenger},
  journal={Management Science},
  year={2010},
  volume={56},
  pages={659-681}
}
Scientists and engineers in small firms are far more likely than their large firm counterparts to enter entrepreneurship, a phenomenon we label the small firm effect. We explore the origins of this small firm effect, identify four classes of explanations—preference sorting, ability sorting, opportunity cost, and the possibility that workers in small firms develop entrepreneurial human capital—and exploring these empirically, by examining the determinants of entrepreneurial entry and performance… CONTINUE READING

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