1. employment generation/number of jobs created.
2. Employment dynamics/firm growth in the number of jobs.
3. Employee re-numeration/salary, benefits.
- firm growth rates decrease in firm size
- Entrepreneurial firms create more jobs
* through externalities even more jobs are created
* Jobs are less secure
* Hire people with lower human capital.
* Pay lower wages; higher job satisfaction
1. Production of innovation (patents, new products)
2. Commercialisation of innovation
- entrepreneurial firms produce fewer innovations (quality might be higher)
- probability of sales from innovation is higher but it is diminished by the value destruction of entrepreneurs
1. growth of value added
2. Labour productivity
3. Total factor productivity
- entrepreneurs production value added grows fast
- labour levels are not higher
- growth of labour productivity is higher
1. Returns to employment
2. Volatility/drop risk
3. Job satisfaction
- entrepreneurs and lower median incomes; they are more volatile, riskier incomes; they are more satisfied. Why? because of availability heuristic and exit barriers; humans overestimate probabilities of events they can easily remember, others are underestimated.
- exit barriers due to investment
- experienced as “giving up independency”
- “Hoping for sunshine”