Is it the survival of the fittest or of the jacks-of-all-trades? Business survival in the light of Lazear’s theory

Abstract

In this article, we apply a proportional hazard model to analyze the determinants of success in a large sample of 1,656 entrepreneurs and former entrepreneurs. We base our research on the theory of entrepreneurship by Edward Lazear, according to which individuals with broad educational and professional experience, in comparison to specialists, are more likely to become entrepreneurs. We extend this theory by verifying whether breadth of education and professional career also contribute to the likelihood of entrepreneurial success. According to our findings, breadth of education not only influences the propensity to start a business but also positively influences the chances of business survival. The breadth of professional experience proved to have a significant impact on business survival, but this result did not hold for extensive managerial experience. JEL CLASSIFICATION: L26, J24.