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Research Institute of Industrial Economics (IFN) Working Paper Series

No 825:
Hybrid Entrepreneurship

Timothy B. Folta (), Frédéric Delmar () and Karl Wennberg ()

Abstract: In contrast to previous efforts to model the individual’s movement from wage work into entrepreneurship, we consider that individuals might transition incrementally by retaining their wage job while entering into self-employment. We show that these hybrid entrepreneurs represent a significant share of all entrepreneurial activity. Theoretical arguments are proposed to suggest why hybrid entrants are distinct from self-employment entrants, and why hybrid entry may facilitate subsequent entry into full self-employment. We demonstrate that there are significant theoretical and empirical consequences for this group and our understanding of self-employment entry and labor market dynamics. Using matched employee-employer data over eight years, we test the model on a population of Swedish wage earners in the knowledge-intensive sector.

Keywords: Hybrid entrepreneurship; Self-employment; Labour market dynamics; Transition determinants; Employee-employer data; (follow links to similar papers)

JEL-Codes: H39; J24; L26; (follow links to similar papers)

39 pages, March 11, 2010

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This paper is published as:
Folta, Timothy B., Frédéric Delmar and Karl Wennberg, (2010), 'Hybrid Entrepreneurship', Management Science, Vol. 56, No. 2, pages 253-269



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