Working Paper: CEPR ID: DP16449
Authors: Petr Sedlacek; Sudipto Karmakar; Sonia Felix
Abstract: Why are some firms more successful than others and how does this shape aggregate outcomes? To address these questions, we use unique administrative data, exploiting information on serial entrepreneurs (owners of multiple firms) as impersonations of business success. First, we document that serial entrepreneurs are three times more likely to own high-growth firms (“gazelles”) and that their businesses disproportionately contribute to aggregate productivity growth, job creation and business dynamism. Second, we show that the success of serial entrepreneurs can largely be traced back to two key sources: their innate characteristics (primarily education and ability) and lower indebtedness of their firms.
Keywords: Serial Entrepreneurs; Macroeconomy; Business Dynamism; Income Inequality
JEL Codes: No JEL codes provided
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Serial Entrepreneurship (L26) | Firm Size (L25) |
| Serial Entrepreneurship (L26) | Firm Growth (L25) |
| Serial Entrepreneurship (L26) | Exit Rate (J63) |
| Serial Entrepreneurship (L26) | Productivity (O49) |
| Serial Entrepreneurship (L26) | Job Creation (J23) |
| Serial Entrepreneurship (L26) | Productivity Growth (O49) |