The Choice to Become an Entrepreneur as a Response to Policy Incentives

Abstract

Attempting to stimulate economic growth, governments have developed a host of entrepreneurial policy incentives. Yet such incentives have not been evaluated in terms of their attractiveness to high potential entrepreneurs facing the choice between wage employment and entrepreneurship. Using adaptive conjoint analysis and a sample of graduating MBA students from the United States, we empirically investigate the efficacy of various policy incentives by examining the trade-offs involved in the occupational choice between entrepreneurship and wage employment. In doing so, we provide a theoretical framework for entrepreneurship policy by connecting the literature on occupational choice with the literature on entrepreneurship policy incentives, and offer concrete data to policy makers seeking to influence the choice of entrepreneurship as a career option.