---
title: "Business Owners, Employees and Firm Performance"
authors:
  - name: "Maliranta, Mika"
  - name: "Nurmi, Satu"
date_published: "2016-10-06"
series: "ETLA Working Papers"
series_number: "42"
issn:
  - "2323-2420"
  - "2323-2439"
jel_codes:
  - "L25"
  - "L26"
  - "J24"
  - "J62"
  - "O33"
language: "en"
publisher: "ETLA Economic Research"
pdf_url: "https://www.etla.fi/wp-content/uploads/ETLA-Working-Papers-42.pdf"
keywords:
  - "Entrepreneurship"
  - "ownership"
  - "firm performance"
  - "human capital"
  - "diffusion of knowledge"
identifier: "https://www.etla.fi/julkaisut/id/ETLA-Working-Papers-42"
---

# Business Owners, Employees and Firm Performance

**Published:** 2016-10-06  
**Categories:** Publications, Working Papers  
**URL:** https://www.etla.fi/en/publications/business-owners-employees-and-firm-performance/

Abstract
 The novel Finnish Longitudinal OWNer-Employer-Employee (FLOWN) database was used to analyze how the characteristics of owners and employees relate to firm performance as determined by labor productivity, survival and employment growth. Focusing on the role of the owner’s formal education and previous experience as an employee, the results show that previous experience in a high-productivity firm strongly predicts high productivity and probability of survival for the entrepreneur’s new firm. This can be interpreted as evidence of knowledge spillover through labor mobility. Strikingly, firms established in times of intensive excess job reallocation were found to exhibit superior productivity performance in the later phases of their life cycles.

---

## Additional Information

**Kirjoittajat:** Maliranta, Mika - Nurmi, Satu

**Kansikuva:** https://www.etla.fi/wp-content/uploads/ETLA-Working-Papers-42_kansi.jpg

**Lataa Pdf:** https://www.etla.fi/wp-content/uploads/ETLA-Working-Papers-42.pdf

**Key Words:** Entrepreneurship, ownership, firm performance, human capital, diffusion of knowledge

**Jel:** L25, L26, J24, J62, O33

**Paivays:** 06.10.2016

**Sivuja:** 35

15

**Kieli:** en

**Sarja:** ETLA Working Papers

**Sarja Nro:** 42

**Issn:** 2323-2420, 2323-2439

**Saatavuus:** 1

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