Dear Colleagues,
Our next virtual seminar in the Entrepreneurship and Innovation Policy Research series is Wednesday, April 29 from 11:00-12:00 ET. Megan Lawrence (Vanderbilt University) - will present "Are MBAs Good Entrepreneurs?" (with Evan Rawley and Kylie Hwang). Abstract is below. Click the link HERE to register for the April 29nd seminar.
We hope you join us!
- Tim Folta (UCONN), Maryann Feldman (ASU), and Supradeep Dutta (Rutgers U)
Abstract: While critics claim that Master of Business Administration (MBA) programs do little to cultivate entrepreneurial talent, many business schools emphasize their role in fostering entrepreneurship. To reconcile these competing perspectives, we develop a framework that distinguishes between entrepreneurial ability and commitment effects on entry, performance and exit. We empirically separate the two effects utilizing a longitudinal dataset of 1,260 hedge fund portfolio managers (1986-2023). The results show that MBAs are more likely to found new ventures and generate superior risk-adjusted returns; however, they are also more likely to exit, conditional on performance. The results are consistent with the interpretation that MBAs are good entrepreneurs but are less committed to entrepreneurship as a career choice.
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