Entrepreneur—A Jockey or a Horse Owner?

Kulchina, Elena; Gjerløv-Juel, Pernille

doi:10.2139/ssrn.3441997

Cited by 4 publications

(5 citation statements)

References 51 publications

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“…For instance, Kaplan, Sensoy, and Strömberg (2009) study a sample of 50 venture capital-backed firms and document that the core business ideas tend to be much more stable than the founding team, suggesting the importance of the horse over the jockey. Consistent with this view, although the founding team may be critical to the earliest stages of launching a venture, they may not have the appropriate skills to build and grow the business (Wasserman, 2017;Kulchina and Gjerlov-Juel, 2019). More generally, founding teams may be less critical after a business idea has been sufficiently developed, at which point the founding team members could be replaced by outside individuals with suitable skills.…”

Section: Introductionmentioning

confidence: 99%

Founding Teams and Startup Performance

et al. 2019

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The research program of the Center for Economic Studies (CES) produces a wide range of economic analyses to improve the statistical programs of the U.S. Census Bureau. Many of these analyses take the form of CES research papers. The papers have not undergone the review accorded Census Bureau publications and no endorsement should be inferred. Any opinions and conclusions expressed herein are those of the author(s) and do not necessarily represent the views of the U.S. Census Bureau. All results have been reviewed to ensure that no confidential information is disclosed. Republication in whole or part must be cleared with the authors. To obtain information about the series, see www.census.gov/ces or contact

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Section: Introductionmentioning

confidence: 99%

Founding Teams and Startup Performance

et al. 2019

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“…There is some disagreement regarding the importance of founders altogether. Research has provided evidence that the venture's idea, especially once the business is more stable, is paramount (Kaplan, Sensoy, and Strömberg 2009;Kulchina and Gjerløv-Juel 2019;Wasserman 2017).…”

Section: Succession and Evolutionmentioning

confidence: 99%

Innovation-Driven Entrepreneurship

Botelho

Fehder

Hochberg

2021

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Hilaire provided excellent research assistance. Daniel Lee provided valuable input to early proposal drafts. Opinions and conclusions expressed herein are solely those of the authors and do not represent the opinions or policy of the institutions with which the authors are affiliated. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.NBER working papers are circulated for discussion and comment purposes. They have not been peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications.

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“…Yet recent evidence suggests that this is not always the case (Beckman and Burton 2008;Chen and Thompson 2015;Clarysse and Moray 2004;Kulchina 2016). Up to 40 percent of founders in the United States and Europe rely on hired CEOs at the time of founding (e.g., Kulchina and Gjerløv-Juel 2017; Oxley 2017; McKenzie and Woodruff 2017) and a significant share of the remaining founders hire professional managers by the time of a major financing event and IPO (e.g., Clarysse and Moray 2004;Wasserman 2003).…”

Section: Introductionmentioning

confidence: 99%

“…Kaplan, Sensoy, and Stromberg (2009) They may lack operational knowledge and skills and make strategic decisions based on their nonpecuniary preferences rather than profit maximization (Chen and Thompson 2015;Wasserman 2017). Kulchina and Gjerløv-Juel (2017) examine what motivates founders to delegate firm operation to a hired manager and find that founders are more likely to do so when they lack relevant knowledge and skills, have attractive outside employment, and assign low value to the non-pecuniary benefits of ownermanagement, such as schedule flexibility. Founders who hire CEOs to operate their firms may work in a firm at another position, hold an outside job, or, in rare cases, not work at all (Kulchina and Gjerløv-Juel 2017).…”

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confidence: 99%

Top Managers in Entrepreneurial Firms: Who is running the show?

Kulchina¹,

Venâncio²

2018

Proceedings

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New venture teams have a strong impact on firm performance, and researchers have long been interested in understanding how entrepreneurs select co-founders and early employees. In this paper, we examine how entrepreneurs choose top managers for their ventures. Founders often lack the necessary skills and motivation for managing their firms personally and hire professional managers instead. We find, however, that entrepreneurs have a strong tendency to hire managers who are similar to them, even when this may negatively affect firm performance. Our results are consistent with the idea that founders choose managers with similar demographic

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Entrepreneur—A Jockey or a Horse Owner?

Cited by 4 publications

References 51 publications

Founding Teams and Startup Performance

Founding Teams and Startup Performance

Innovation-Driven Entrepreneurship

Top Managers in Entrepreneurial Firms: Who is running the show?

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