May 9, 2005

Agarwal-Tronetti Quoted in Financial Times

A study on employee entrepreneurship conducted by Rajshree Agarwal, associate professor of business administration, found that 25 percent of new companies were started by people leaving larger companies in the same sector and suggests that "spin-outs have a survival edge in the market ... as the result of entrepreneurial flexibility and inherited knowledge."

In an article appearing in the Financial Times Business Life Management section on April 25, author Paul Tyrrell draws on Agarwal's research when pointing out that successful implementation of a business idea rests as much on the entrepreneur as it does on the idea. Basic business skills -- in the entrepreneur or her staff -- is a given, as are leadership skills, but success also depends on an entrepreneur exploiting her experience.

Also cited in the article is one of Agarwal's earlier studies that shows timing of entry is also critical to success. Being an early player is helpful for survival but entry during the mature phase of an industry turns out to be disadvantageous .

Agarwal researches issues related to technological change and entrepreneurship and their implications for firm and industry evolution. She teaches business policy and strategy and has has been at Illinois since 2001.

The full Financial Times article is available online to subscribers.