Entrepreneurship in Equilibrium

Topics:
Venture Capital
Tags:
Entrepreneur,
Entrepreneurship,
Intrapreneurship,
Management,
National Bureau Of Economic Research
Source:
National Bureau of Economic Research

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Overview: This paper compares the financing of new ventures in start-ups (entrepreneurship) and in established firms (intrapreneurship). Intrapreneurship allows established firms to use information on failed intrapreneurs to redeploy them into other jobs. By contrast, failed entrepreneurs must seek other jobs in an imperfectly informed external labor market. While this external labor market leads to ex post inefficient allocations, it provides entrepreneurs with high-powered incentives ex ante.

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Format: PDF | Size: 283KB | Date: Jun 2002 | Pages: 40

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