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Industry and startup experience on entrepreneur forecast performance in new firms

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  • Cassar, Gavin

Abstract

I theoretically develop and empirically investigate the role of industry and startup experience on the forecast performance of 2304 entrepreneurs who have started new businesses. Using the Kauffman Firm Survey I show that industry experience is associated with more accurate and less biased entrepreneur expectations. Further, the benefit of industry experience on entrepreneurial forecast performance is greater in high-technology industries. These findings are consistent with knowledge of the setting informing entrepreneurial decision making, especially in highly uncertain environments. However, in contrast to the prevailing view in the literature, I find no significant evidence that startup experience improves entrepreneurial forecast performance.

Suggested Citation

  • Cassar, Gavin, 2014. "Industry and startup experience on entrepreneur forecast performance in new firms," Journal of Business Venturing, Elsevier, vol. 29(1), pages 137-151.
    • Handle: RePEc:eee:jbvent:v:29:y:2014:i:1:p:137-151
    DOI: 10.1016/j.jbusvent.2012.10.002
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