Discussion paper
DP16449 The Impact of Firm Performance on Macroeconomic Outcomes: Evidence from Serial Entrepreneurs
Why are some firms more successful than others and how does this shape aggregate outcomes? To address these questions, we use unique administrative data, exploiting information on serial entrepreneurs (owners of multiple firms) as impersonations of business success. First, we document that serial entrepreneurs are three times more likely to own high-growth firms (“gazelles”) and that their businesses disproportionately contribute to aggregate productivity growth, job creation and business dynamism. Second, we show that the success of serial entrepreneurs can largely be traced back to two key sources: their innate characteristics (primarily education and ability) and lower indebtedness of their firms.
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