Founder backgrounds and the evolution of firm size

摘要

To what extent are firm size differences influenced by entrepreneurs' pre-founding experience, and do these differences persist over time? We analyze these questions using a novel data set assembled for Australian and New Zealand wine producers on their heritage and sizes at various ages. Our findings indicate that on average firms founded by individuals with prior wine industry experience are larger initially and remain larger for at least the next 20 years. Using additional data on professional backgrounds, export scope, and the size of the firms at which experienced founders previously worked, we explore alternative mechanisms that could have generated these persistent size differences.