Work experience from paid employment and entry mode to entrepreneurship: business takeover versus new venture start-up

Abstract

Our paper investigates how the type of work experience from prior paid employment influences the entrepreneurship entry mode. We distinguish between two distinct entry modes: business takeover and new venture start-up. Using a large and rich French data set, we find that small firm experience increases the likelihood for business takeovers, whereas management and same sector experience both increase the likelihood for new ventures. Our findings are relevant for policymakers aiming to improve the business transfer process.JEL code: L26