JOURNAL OF MANAGEMENT POLICY AND PRACTICE
Part-Time Entrepreneurship, Learning and Ability
Author(s): Kameliia Petrova
Citation: Kameliia Petrova, (2010) "Part-Time Entrepreneurship, Learning and Ability," Journal of Management Policy and Practice, Vol. 12, Iss. 1, pp. 64 - 75
Article Type: Research paper
Publisher: North American Business Press
Abstract:
Recent evidence from a large cross-national study on the level of entrepreneurial activity of 40 countries
has established that 80 percent of those who implement start-ups also hold outside paid jobs. To explain
part-time entrepreneurship, I develop a model in which individuals become part-time entrepreneurs
because they do not know their entrepreneurial ability ahead of time. Better entrepreneurs manage to
transform their start-ups into successfully operating businesses; those with lower entrepreneurial ability
withdraw. The model gives rise to industry selection and agrees with the empirical evidence from the
Panel Study of Entrepreneurial Dynamics (PSED).