| dc.description.abstract | Non-competes come in the form of restrictions on employees and the key value they carry are to protect a business from future competition. On the other hand, entrepreneurial ventures are fueled by individual interests and by individuals looking to become new entrants. Naturally, these conflicting interests lead to a ‘fight’ – some fair and some unfair – between the business and the individual. This ‘fight’ and the question of how the two interests can co-exist within the business environment is an important question that should be addressed by state policymakers and firms alike. The purpose of this study is to explore the relationship between non-compete policies and entrepreneurial growth and to uncover the factors that may shape this relationship. Although non-competes do carry the potential to create a trade-off between benefits to firms and costs to individual workers, how much is this potential actually played out in practice? This was the initial driving question behind my research study. Given that non-compete provisions come in all shapes and forms, I created an interview study that aimed to collect a variety of experiences in relation to non-competes. In my data collection, I took an in depth, exploratory approach by asking a series of interview questions. Interview data was collected with a total of 34 observations. Each respondent for the interview study was in a different position in what I call the ‘non-compete cycle’. The non-compete cycle is made up of those who enforce the non-compete, those who currently fall under a non-compete, and those who have transitioned out of a non-compete. I conducted a quantitative-level analysis and used statistical methods to empirically test the relationship between non-competes and entrepreneurial outcomes. I also conducted a qualitative-level analysis by recording interview comments and experiences regarding this topic and noting themes that emerged from my interviews. The results of my regression models and t-test analyses indicate that there is a non-random relationship, and evidence of negative correlations, between variables impacting a non-compete, and outcome variables for entrepreneurial spawning. The results of my qualitative analyses indicate that there are intangible factors outside of a non-compete agreement that can protect business interests. My analysis further raises the question of whether a non-compete is truly meaningful in the business environment. | |
