Beginning in 1922, the rate of exit of US tire producers increased sharply and the industry began a severe and protracted shakeout. Just 5 years earlier, the tire industry experienced a surge in entry that led to a rise of over 80% in the number of producers. We propose an explanation for this...

To what extent are firm size differences influenced by entrepreneurs' pre-founding experience, and do these differences persist over time? We analyze these questions using a novel data set assembled for Australian and New Zealand wine producers on their heritage and sizes at various ages. Our...

Whereas most start-ups are in low-tech industries, we apply a novel strategy to a data set of scientists and engineers to focus predominantly on high-tech entrepreneurs. We develop a simple model in which the rewards from entrepreneurship are determined by the interaction of ability, the quality...

We analyse the rate of formation, the characteristics, and the performance of different types of new firms in Sweden over a decade. Comparisons with Denmark, Brazil, and the United States suggest that the environment for new firm formation in Sweden is not markedly different than elsewhere. In...