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Success and Risk Factors in the Pre-Startup Phase

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Author Info
Marco Gelderen ()
Roy Thurik ()
Niels Bosma ()

Additional information is available for the following registered author(s):

Abstract

Why does one person actually succeed in starting a business, while a second person gives up? In order to answer this question, a sample of 517 nascent entrepreneurs (people in the process of setting up a business) was followed over a 3-year period. After this period, it was established that 195 efforts were successful and that 115 start up efforts were abandoned. Our research focuses on estimating the relative importance of a variety of approaches and variables in explaining pre-start-up success. These influences are organized in terms of Gartner’s (1985) framework of new venture creation. This framework suggests that start-up efforts differ in terms of the characteristics of the individual(s) who start the venture, the organization that they create, the environment surrounding the new venture, and the process by which the new venture is started. Logistic regression analyses are run for the sample as a whole as well as for subgroups within the sample, namely for those with high ambition versus low ambition and for those with substantial versus limited experience. The results point to the importance of perceived risk of the market as a predictor of getting started versus abandoning the start up effort. Copyright Springer 2006

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File URL: http://hdl.handle.net/10.1007/s11187-004-6837-5
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Publisher Info
Article provided by Springer in its journal Small Business Economics.

Volume (Year): 26 (2006)
Issue (Month): 4 (05)
Pages: 319-335
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:kap:sbusec:v:26:y:2006:i:4:p:319-335

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Web page: http://www.springerlink.com/link.asp?id=100338

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Related research
Keywords: performance; survival; nascent entrepreneurs; start-ups; M13;

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  1. Schutjens, V. & Stam, F.C., 2006. "Starting Anew: Entrepreneurial Intentions and Realizations Subsequent to Business Closure," Research Paper ERS-2006-015-ORG Revision, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni. [Downloadable!]
    Other versions:
  2. Paul Reynolds & Niels Bosma & Erkko Autio & Steve Hunt & Natalie De Bono & Isabel Servais & Paloma Lopez-Garcia & Nancy Chin, 2005. "Global Entrepreneurship Monitor: Data Collection Design and Implementation 1998–2003," Small Business Economics, Springer, vol. 24(3), pages 205-231, 02. [Downloadable!] (restricted)
  3. Andre van Stel & David Storey & Roy Thurik & Sander Wennekers, 2005. "From nascent to actual entrepreneurship: the effect of entry barriers," Papers on Entrepreneurship, Growth and Public Policy 2005-35, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group. [Downloadable!]
    Other versions:
  4. Niels Bosma & Sander Wennekers, 2004. "Entrepreneurial Attitudes Versus Entrepreneurial Activities (GEM)," Scales Research Reports A200316, EIM Business and Policy Research. [Downloadable!]
  5. Erik Stam & David Audretsch & Joris Meijaard, 2006. "Renascent Entrepreneurship - Entrepreneurial Preferences Subsequent to Firm Exit," Papers on Entrepreneurship, Growth and Public Policy 2006-06, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group. [Downloadable!]
  6. Jolanda Hessels & Marco Gelderen & Roy Thurik, 2008. "Entrepreneurial aspirations, motivations, and their drivers," Small Business Economics, Springer, vol. 31(3), pages 323-339, October. [Downloadable!] (restricted)
  7. Roy Thurik & Isabel Grilo, 2005. "Determinants of entrepreneurial engagement levels in Europe and the US," Papers on Entrepreneurship, Growth and Public Policy 2005-25, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group. [Downloadable!]
    Other versions:
  8. Isabel Grilo & Roy Thurik, 2005. "Entrepreneurial engagement levels in the European Union," Papers on Entrepreneurship, Growth and Public Policy 2005-29, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group. [Downloadable!]
    Other versions:
  9. Stam, F.C. & Audretsch, D.B. & Meijaard, J., 2006. "Renascent Entrepreneurship," Research Paper ERS-2006-017-ORG Revision, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni. [Downloadable!]
    Other versions:
  10. Mikael Samuelsson & Per Davidsson, 2009. "Does venture opportunity variation matter? Investigating systematic process differences between innovative and imitative new ventures," Small Business Economics, Springer, vol. 33(2), pages 229-255, August. [Downloadable!] (restricted)
  11. Jeroen de Jong & Sander Wennekers, 2008. "Intrapreneurship; Conceptualizing entrepreneurial employee behaviour," Scales Research Reports H200802, EIM Business and Policy Research. [Downloadable!]
  12. Sierdjan Koster, 2009. "Italian Investments In The Agglomeration Of Timisoara In Romania: Threat Or Opportunity For The Economic Development?," Romanian Journal of Regional Science, Romanian Regional Science Association, vol. 3(1), pages 36-62, JUNE. [Downloadable!]
  13. Andre van Stel & David Storey & Roy Thurik, 2006. "The effect of business regulations on nascent and actual entrepreneurship," Papers on Entrepreneurship, Growth and Public Policy 2006-04, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group. [Downloadable!]
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