Differentiation in Microenterprise: A Field Experiment in Zimbabwe

Funded Research Proposal

In explaining variation in productivity in microenterprise, research has focused primarily on the adoption of effective business practices and access to capital, with little focus on strategic positioning. In archival evidence, we find that offering a differentiated product or service is strongly correlated with firm performance. Using a combined sample of nearly 10,000 microenterprises across eight developing countries, we estimated that a standard deviation increase in differentiation is associated with approximately an 11 percent increase in revenues and an eight percent increase in profitRead More

Pivoting and Experimentation in Lean Startups

Funded Research Proposal

While recent scholarly and practitioner research has stressed the importance of learning in entrepreneurial settings, little scholarly work has formally examined the mechanisms through which learning drives behavior in those settings. Specifically, we investigate how an active learning process based on evaluating performance relative to an aspiration drives the pivoting and experimentation behavior of startups in environments with high degrees of uncertainty and potentially intense selection pressures.Read More

Information Ambiguity in Entrepreneurial Experimentation

Funded Research Proposal

Pursuing entrepreneurial opportunities is characterized by high uncertainty because entrepreneurs look to find unsatisfied demand with their new products or services. In an attempt to reduce uncertainty, entrepreneurs experiment with potential customers, seeking feedback through interviews or prototypes. It allows the entrepreneurs to learn about the targeted market and whether their idea can satisfy that demand.Read More

Credit Supply & Entrepreneurship in Low-Income Regions

Working Papers

We show that bank credit affects entrepreneurship, but only in low-income regions. We use a novel methodology to identify credit supply shock from regional demand shock using comprehensive data on small business loans between pairs of banks and counties in the US.Read More

A Theory of Experimentation in New Ventures

Working Papers

Experimentation has been the center of a fascinating debate among entrepreneurship practitioners throughout the past decade. While intellectually stimulating and practically relevant, this discussion has received little attention from management research, and therefore has no scientific support. Read More

Experimentation and Appropriability in Early-Stage Ventures: Evidence from the U.S. Software Industry

Working Papers

This study examines the tension between learning and appropriability in the experimentation process of early-stage ventures. I build a stylized model to argue that, when formal intellectual property is weak, the learning benefit of experimentation may be offset by its imitation risk. Read More

Sizing Up Entrepreneurial Potential: Gender Differences in Communication and Investor Perceptions of Long-Term Growth and Scalability

Published Research

Across three studies, we examine how disparities in funding outcomes may be due to differences in how entrepreneurs communicate their ventures, whereby female entrepreneurs have a tendency to use more concrete language when describing their ventures than do their male counterparts.Read More

Who Benefits from Having a Partner? Intrinsic Motivation, Partnership Decisions, and the Chance of Becoming a Profitable Firm

Working Papers

Entrepreneurs and entrepreneurial firms are often the drivers of innovation, and success for entrepreneurial firms often means development and introduction of innovative products and services. This project examines the role that having a partner plays in early-stage entrepreneurial firm performance.Read More

Employment before Entrepreneurship and Gender Inequality: Evidence from Venture Capital Financing

Funded Research Proposal

Venture capital is the key to fostering and supporting innovation. However, there is huge gender bias in venture financing market. In 2017, only 2.2% of total venture funding went to female-founded firms in US, despite the fact that female entrepreneurs own 38% of total business in the country.Read More

Does Crowdfunding Benefit Entrepreneurs and Venture Capital Investors?

Published Research

We study how a new development in entrepreneurship—crowdfunding—interacts with more traditional financing sources, such as venture capital (VC) and bank financing. Read More

Does Private Equity Ownership Make Firms Cleaner? The Role Of Environmental Liability Risks

Working Papers

As VC firms have an acute interest in high-tech companies, they potentially bear substantial risk of patent litigation. In this project, we aim at looking into the following questions: how do ex-ante and ex-post patent litigation risks affect VC firms’ investment strategies and how those risks is propagated among all portfolio companies they have invested?Read More

Personal Wealth and Self-Employment

Working Papers

We examine how wealth windfalls affect self-employment decisions using data on cash payments from claims on Texas shale drilling to people throughout the United States. Individuals who receive large wealth shocks (greater than $50,000) have 51% higher self-employment rates.Read More