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The Market for Entrepreneurs

We surveyed 184 graduating MBA students using an adaptive conjoint instrument to ascertain the resources they would require for starting their own new firm rather than accepting a job offer with an existing firm. Our investigation enabled us to quantify the utility of a heterogeneous set of resources that included “soft” intangibles (such as a support network) as well as “hard” tangible resources (such as the provision of office space, funding, etc.). Our results have implications for both policymakers interested in what incentives are attractive for potential entrepreneurs and researchers interested in the determinants of new firm creation.