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What Makes an Entrepreneur?

Stashed in: Hiring

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Abstract The factors that affect the supply of entrepreneurs are important but poorly understood. We study a sample of individuals who choose either to be employees or to run their own businesses. Four conclusions emerge. First, consistent with the existence of borrowing constraints on potential entrepreneurs, we find that the probability of self-employment depends markedly upon whether the individual ever received an inheritance or gift. Second, when directly questioned in interview surveys, potential entrepreneurs say that raising capital is their principal problem. Third, consistent with our theoretical framework's predictions, the self-employed have higher levels of job and life satisfaction than employees. Fourth, childhood personality measurements and psychological test scores are of almost no help in predicting who runs their own business later in life. It is access to start-up capital that matters

Full paper is here:

"Raising capital is their principal problem."

I find that so interesting.

I think our principal problem is finding the right people.

In Silicon Valley we have plenty of access to startup capital. It's access to talent that slows us down.

Then maybe I should have posted this instead :)

What are the scientific, time-tested methods for hiring the best people?

What I get from that article are: work sample test, integrity test, and a structured interview.

Which makes me ask the question of what those consist of.

I did find a good article on 5 steps to a good structured interview.

Any other resources you recommend?