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date: 05 March 2021

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.

Keywords: financial returns, entrepreneurship, entrepreneurial choice, rate of return, observed variation, empirical literature

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