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These papers offer ‘static’ models of survival and do not explicitly address the issue of learning by the owner-manager over time. Jovanovic (1982), cited in Cressy (1999) developed a model in which this occurs. Business is ‘a learning experiment’ in which the entrepreneur learns about his/her fixed level of entrepreneurial skills over time. However, there is no possibility of learning by doing here: the ability to improve one’s skills by rectifying mistakes, finding better ways of doing things, and so on . Furthermore, the Jovanovic model assumes entrepreneurs are ‘one-shot’: they are in business only once...
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