- Consulting Editors
- Finance of New industries
- The Returns to Entrepreneurship
- Risk Attitudes and Private Business Equity
- New Firm Financing and Performance
- New Perspectives On Entrepreneurial Capital Structure
- The Capital Structure of Family Firms
- Influence of Internal Factors on the Use of Equity-and Mezzanine-Based Financing in Family Firms
- Planning For Entrepreneurial Finance And Capital: A Critical Review Of The Importance Of Teaching Business Planning
- Funding Gaps
- Availability of Credit to Small Firms Young and Old: Evidence from the Surveys of Small Business Finances
- Asymmetric Information, Credit Market Condition, and Entrepreneurial Finance
- Alternative Types Of Entrepreneurial Finance
- Angel Investors and Their Investments
- Firm Growth, Schumpeterian Entrepreneurship, and Venture Capital
- Why Do Firms Go Public?
- Valuation Of IPOs
- Trade Credit and Its Role in Entrepreneurial Finance
- Factoring and Invoice Financing
- Project Finance
- Hedge Fund Asset-Based Lending
- Business Taxation, Corporate Finance, and Economic Performance
- Financial Capital among Minority-Owned Businesses
- Financing Women-Owned Firms: A Review Of Recent Literature
- International Differences In Entrepreneurial Finance
- Entrepreneurial Finance in Weak Institutional Environments
- Microfinance for Entrepreneurs
- The Past and Future of Innovations in Microfinance
- Index of Names
Abstract and Keywords
This article reviews theory and evidence on the financial returns to an individual from the choice to be or become an entrepreneur in comparison to the best (or present) alternative—the returns in entrepreneurship. It carefully examines the empirical literature and document findings and discusses the reasons for the observed variation in returns. Further, it presents the main theories of entrepreneurial choice and discusses how well these theories explain observed data. Finally, the article documents the most important variables affecting the rate of return to entrepreneurship and reviews theories explaining these effects.
Thomas Åstebro is associate professor of strategy and entrepreneurship at HEC Paris. Previously, he was associate professor in strategy at University of Toronto and also held the University of Waterloo associate chair of management of technological change from 1994 to 2004. Dr. Åstebro conducts research in the management of technological change and entrepreneurship. He has published in, among others, Management Science, RAND Journal of Economics, and The Economic Journal. He has also been involved in starting several companies and serves as a consultant to entrepreneurs on business planning and starting up. Prior to joining the University of Waterloo, Dr. Åstebro worked as a management consultant in the area of business strategy and has been a consultant to major corporations such as Bank of Montreal, Canadian Imperial Bank of Commerce, and Volvo, and institutions such as the Royal Swedish Academy of Engineering Sciences. Dr. Åstebro received his PhD from Carnegie Mellon University. He has a master degree in engineering and a degree as “Teknologie Licentiat” from Chalmers University of Technology, Sweden.
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