Entrepreneurship and the Decision to Export
What motivates entrepreneurs to export? The chapter looks at cross-country, cross-industry data focusing on firm stage and the innovativeness of products and technology to find how these characteristics correlate with export participation. Given an entrepreneur’s specific environment, products embodying new technologies and innovativeness, along with reduced competition, contribute to increased export participation. Entrepreneurs with higher education and incomes are also more likely to export. The chapter also finds that early-stage entrepreneurs report a higher rate of export participation than ‘established’ entrepreneurs. While the results are inconclusive as to why this pattern exists, they suggest that riskier early-stage exporters may fail or that, although they enter export markets, entrepreneurs exit them as domestic markets mature.
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