Skip to Main Content
HBS Home
  • About
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Giving
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions
Faculty & Research
  • Faculty
  • Research
  • Featured Topics
  • Academic Units
  • …→
  • Harvard Business School→
  • Faculty & Research→
Publications
Publications
  • April 2010
  • Article
  • Journal of Financial Economics

Performance Persistence in Entrepreneurship and Venture Capital

By: Paul A. Gompers, Josh Lerner, David Scharfstein and Anna Kovner
  • Format:Print
ShareBar

Abstract

This paper presents evidence of performance persistence in entrepreneurship. We show that entrepreneurs with a track record of success are much more likely to succeed than first-time entrepreneurs and those who have previously failed. In particular, they exhibit persistence in selecting the right industry and time to start new ventures. Entrepreneurs with demonstrated market-timing skill are also more likely to outperform industry peers in their subsequent ventures. This is consistent with the view that if suppliers and customers perceive the entrepreneur to have market-timing skill, and is therefore more likely to succeed, they will be more willing to commit resources to the firm. In this way, success breeds success and strengthens performance persistence.

Keywords

Performance; Entrepreneurship; Venture Capital; Private Equity; Market Timing; Competency and Skills; Success; Business Startups

Citation

Gompers, Paul A., Josh Lerner, David Scharfstein, and Anna Kovner. "Performance Persistence in Entrepreneurship and Venture Capital." Journal of Financial Economics 96, no. 1 (April 2010): 18–32.
  • Find it at Harvard
  • Read Now

About The Authors

Paul A. Gompers

Finance
→More Publications

Josh Lerner

Entrepreneurial Management
→More Publications

David S. Scharfstein

Finance
→More Publications

More from the Authors

    • September 2023
    • Faculty Research

    Honest Jobs: A Path to Redemption

    By: Paul A. Gompers and Jeffrey Barkas
    • August 2023
    • Faculty Research

    WayCool: Reimagining the Food Supply Chain

    By: Paul Gompers and Kairavi Dey
    • August 2023
    • Management Science

    Anti-Corruption, Government Subsidies, and Innovation: Evidence from China

    By: Lily Fang, Josh Lerner, Chaopeng Wu and Qi Zhang
More from the Authors
  • Honest Jobs: A Path to Redemption By: Paul A. Gompers and Jeffrey Barkas
  • WayCool: Reimagining the Food Supply Chain By: Paul Gompers and Kairavi Dey
  • Anti-Corruption, Government Subsidies, and Innovation: Evidence from China By: Lily Fang, Josh Lerner, Chaopeng Wu and Qi Zhang
ǁ
Campus Map
Harvard Business School
Soldiers Field
Boston, MA 02163
→Map & Directions
→More Contact Information
  • Make a Gift
  • Site Map
  • Jobs
  • Harvard University
  • Trademarks
  • Policies
  • Accessibility
  • Digital Accessibility
Copyright © President & Fellows of Harvard College