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Effectuation Publications Library
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The Market for Entrepreneurs
2011
Nick Dew, Stuart Read, Anusha Ramesh
Current research suggests that entrepreneurship is an essential input to economic growth, however there is a lack of agreement on what resources incent would-be entrepreneurs to enter the market. We therefore surveyed 184 graduating MBA students using an adaptive conjoint instrument to ascertain the resources they would require to start their own new firm rather than accept a job offer with an existing firm. Our investigation enabled us to quantify the utility of a heterogeneous set of resources that included “soft” intangibles (such as a support network) as well as “hard” tangible resources (such as the provision of office space, funding, health insurance, etc.). Our results have implications both for policy makers interested in what incentives are attractive for potential entrepreneurs and for researchers interested in the determinants of new firm creation.