Entrepreneurial Couples

Posted: March 3rd, 2014 | Filed under: Front, Research, Working Papers | Tags: , , , , | Comments Off on Entrepreneurial Couples

Michael S. Dahl, Mirjam Van Praag and Peter Thompson

We study possible motivations for co-entrepenurial couples to start up a joint firm, using a sample of 1,069 Danish couples that established a joint enterprise between 2001 and 2010. We compare their pre-entry characteristics, firm performance and post-dissolution private and financial outcomes with a selected set of comparable firms and couples. We find evidence that couples often establish a business together because one spouse – most commonly the female – has limited outside opportunities in the labor market. However, the financial benefits for each of the spouses, and especially the female, are larger in co-entrepreneurial firms, both during the life of the business and post-dissolution. The start-up of co-entrepreneurial firms seems therefore a sound investment in the human capital of both spouses as well as in the reduction of income ine-quality in the household. We find no evidence of non-pecuniary benefits or costs of co-entrepreneurship.

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