Featured Research

from universities, journals, and other organizations

Successful entrepreneurs share a common history of getting in trouble as teenagers

Date:
March 5, 2013
Source:
University of California, Berkeley Haas School of Business
Summary:
Independence. Creativity. Money. Those are the benefits associated with successful entrepreneurs such as Steve Jobs and Mark Zuckerberg. But is being an entrepreneur really more lucrative than working for a salary? And who is best cut out to succeed? A new study answers both of these questions.

Independence. Creativity. Money. Those are the benefits associated with successful entrepreneurs such as Steve Jobs and Mark Zuckerberg. But is being an entrepreneur really more lucrative than working for a salary? And who is best cut out to succeed? A new study by Professor Ross Levine of the Haas Economic Analysis and Policy Group answers both of these questions.

Related Articles


Levine and co-author Yona Rubinstein of the London School of Economics and Political Science found that entrepreneurs earn on average 50 percent more than their salaried counterparts who are working in the same industry and have the same education, contrary to a large body of research finding that entrepreneurship does not pay. Levine explains that many previous studies broadly define entrepreneurship, including people who are self-employed such as an accountant or a plumber. In this study, an entrepreneur is defined as a person who undertakes a novel, risk-taking activity. Levine says think Michael Bloomberg or Bill Gates.

Furthermore, they found that successful entrepreneurs possess distinct traits identifiable back when they were teenagers. These traits turn out to be accurate predictors of entrepreneurial success. Some of the not-so-surprising traits include having a high IQ, coming from a stable family, having parents who earn a higher than average income, and having exceptionally high self-esteem and confidence. However, some other common traits are often associated with juvenile delinquency.

"Our data revealed that many successful entrepreneurs exhibited aggressive behavior and got in trouble as teenagers. This is the person who wasn't afraid to break the rules, take things by force, or even be involved in minor drugs," says Levine, the Willis H. Booth Chair in Banking and Finance.

The researchers combed data from the National Longitudinal Survey of Youth (NLSY79), a representative sample of 12,686 young men and women who were 14 to 22 years old when they were first surveyed in 1979. The interviews have continued ever since.

"What we find is that a particular constellation of traits turns out to be a strong predictor of who is going to become an entrepreneur later in life and whether that person is going to be a high-earner when he or she launches a business," says Levine.

In terms of earnings, the study found that successful entrepreneurs displaying these traits typically started their careers as top high earning salaried workers, and when they branched out on their own and successfully established their companies, they tended to enjoy a boost in earnings of 70 percent more than they received as salaried workers.


Story Source:

The above story is based on materials provided by University of California, Berkeley Haas School of Business. Note: Materials may be edited for content and length.


Cite This Page:

University of California, Berkeley Haas School of Business. "Successful entrepreneurs share a common history of getting in trouble as teenagers." ScienceDaily. ScienceDaily, 5 March 2013. <www.sciencedaily.com/releases/2013/03/130305100717.htm>.
University of California, Berkeley Haas School of Business. (2013, March 5). Successful entrepreneurs share a common history of getting in trouble as teenagers. ScienceDaily. Retrieved October 31, 2014 from www.sciencedaily.com/releases/2013/03/130305100717.htm
University of California, Berkeley Haas School of Business. "Successful entrepreneurs share a common history of getting in trouble as teenagers." ScienceDaily. www.sciencedaily.com/releases/2013/03/130305100717.htm (accessed October 31, 2014).

Share This



More Science & Society News

Friday, October 31, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

U.S. Ebola Response Measures Demonstrated

U.S. Ebola Response Measures Demonstrated

AP (Oct. 31, 2014) Officials in the Washington area showed off Ebola response measures being taken at Dulles International Airport and the National Institutes of Health. (Oct. 31) Video provided by AP
Powered by NewsLook.com
Fauci Says Ebola Risk in US "essentially Zero"

Fauci Says Ebola Risk in US "essentially Zero"

AP (Oct. 30, 2014) NIAID Director Anthony Fauci said the risk of Ebola becoming an epidemic in the U.S. is essentially zero Thursday at the Washington Ideas Forum. He also said an Ebola vaccine will be tested in West Africa in the next few months. (Oct. 30) Video provided by AP
Powered by NewsLook.com
Killer History on Display at Museum of Death

Killer History on Display at Museum of Death

AP (Oct. 30, 2014) Visitors take a trip down murderer memory lane at the Museum of Death located in the heart of Hollywood. (Oct. 30) Video provided by AP
Powered by NewsLook.com
Nurse Defies Ebola Quarantine With Bike Ride

Nurse Defies Ebola Quarantine With Bike Ride

AP (Oct. 30, 2014) A nurse who vowed to defy Maine's voluntary quarantine for health care workers who treated Ebola patients followed through on her promise Thursday, leaving her home for an hour-long bike ride. (Oct. 30) Video provided by AP
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:

Breaking News:

Strange & Offbeat Stories


Science & Society

Business & Industry

Education & Learning

In Other News

... from NewsDaily.com

Science News

Health News

Environment News

Technology News



Save/Print:
Share:

Free Subscriptions


Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

Get Social & Mobile


Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

Have Feedback?


Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
Mobile: iPhone Android Web
Follow: Facebook Twitter Google+
Subscribe: RSS Feeds Email Newsletters
Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins