A Dynamic Model of Entrepreneurial Learning

doi:10.1177/104225870102500301

Paper

A Dynamic Model of Entrepreneurial Learning

Published Mar 22, 2001 · M. Minniti, W. Bygrave

Entrepreneurship Theory and Practice

Q1 SJR score

1,146

Citations

66

Influential Citations

Full textSemantic Scholar

Abstract

We model entrepreneurial learning as a calibrated algorithm of an iterated choice problem in which entrepreneurs learn by updating a subjective stock of knowledge accumulated on the basis of past experiences. Specifically, we argue that entrepreneurs repeat only those choices that appear most promising and discard the ones that resulted in failure. The contribution of the paper is twofold. First, we provide a structural model of entrepreneurial learning in which failure is as informative—though clearly not as desirable—as success. Second, to complement standard economic models in which agents are rational, we allow our entrepreneurs to have myopic foresight. Our entrepreneurs process information, make mistakes, update their decisional algorithms and, possibly, through this struggle, improve their performance.

Highly Cited

Study Snapshot

Entrepreneurial learning involves updating knowledge based on past experiences, repeating promising choices and discarding those that resulted in failure, with failure being as informative as success.

PopulationOlder adults (50-71 years)

Sample size24

MethodsObservational

OutcomesBody Mass Index projections

ResultsSocial networks mitigate obesity in older groups.

A Dynamic Model of Entrepreneurial Learning

References

Citations