Entrepreneurs rarely switch industries, study finds
New research on population-wide career data reveals that entrepreneurs almost always stay in the industries where they previously worked — and those who do earn significantly more. The finding challenges the narrative of entrepreneurship as a bold career pivot, suggesting instead that starting a business is typically a calculated extension of existing industry expertise.
Originaltitel: Do entrepreneurs stay in their industry?: Evidence from population-wide data
<p>Using population-wide administrative data, we study industry persistence in career transitions, focusing on entrepreneurial entry. We document that individuals who enter entrepreneurship are significantly more likely to remain in the same industry as in their prior employment compared to individuals who change workplace but remain in paid employment. This persistence is particularly strong among individuals with longer prior industry experience. We further show that entrepreneurs who remain in their prior industry have higher post-entry incomes and income growth than those who switch industries. The results suggest that entrepreneurship largely reflects industry-specific career continuation rather than broad occupational reallocation. </p>