What happens to nascent entrepreneurs? An econometric analysis of the PSED

Simon Parker, Yacine Belghitar

Research output: Contribution to journalArticlepeer-review

137 Citations (Scopus)


This article follows the progress of a large and nationally representative sample of American nascent entrepreneurs - identified in the initial interview of the Panel Study of Entrepreneurial Dynamics (PSED) - over the next 12 months of the panel. We develop a novel theoretical framework based on maximisation of expected utility and the value of waiting, and estimate it to reveal which personal and economic characteristics are associated with venture start-up - and which are associated with remaining a nascent entrepreneur, or giving up entirely. The value of waiting turns out to play a key role in helping us understand what happens to nascent entrepreneurs. We discuss the implications of our results for entrepreneurs, lenders, business start-up support agencies and policy-makers.
Original languageEnglish
Pages (from-to)81-101
JournalSmall Business Economics
Issue number1
Publication statusPublished - Aug 2006


  • nascent entrepreneurship
  • new venture creation
  • occupational choice
  • self-employment
  • business
  • survival
  • ventures
  • firms
  • information
  • dynamics
  • success
  • Canada
  • investment


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