Hybrid Entrepreneurship

In contrast to previous efforts to model the individual's movement from wage work into entrepreneurship, the authors consider that individuals might transition incrementally by retaining their wage job while entering into self-employment. They show that these hybrid entrepreneurs represent a significant share of all entrepreneurial activity. Theoretical arguments are proposed to suggest why hybrid entrants are distinct from self-employment entrants, and why hybrid entry may facilitate subsequent entry into full self-employment. They demonstrate that there are significant theoretical and empirical consequences for this group and the understanding of self-employment entry and labor market dynamics. Using matched employee-employer data over eight years, they test the model on a population of Swedish wage earners in the knowledge-intensive sector.