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A Theory of the Early Growth of the Firm

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Author Info
Garnsey, Elizabeth
Abstract

Economic enterprise consists in the matching of resources and opportunities to create value. Growth processes of the new enterprise are here explored in a systems model inspired by Penrose. A sequence of phases in the early life of the firm reflects growth processes and problems, solutions giving rise to new problems. Firms must access, mobilize and deploy resources before they can generate resources for growth. Subsequent phases--in which growth reinforcement and growth reversal forces content--are not universal, but are set in motion in an important minority of firms, the major job creators. Beyond the early phases, critical problems facing the firm are more diverse. The growth of the firm is related to the building of the competence needed to respond to changing industrial opportunities. Copyright 1998 by Oxford University Press.

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Publisher Info
Article provided by Oxford University Press in its journal Industrial & Corporate Change.

Volume (Year): 7 (1998)
Issue (Month): 3 (September)
Pages: 523-56
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Handle: RePEc:oup:indcch:v:7:y:1998:i:3:p:523-56

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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!]
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  2. Erik Stam, 2005. "Why Butterflies Don’t Leave - Spatial development of new firms," ERSA conference papers ersa05p449, European Regional Science Association. [Downloadable!]
  3. Hulsink, W. & Elfring, T., 2003. "Network effects on Entrepreneurial Processes: Start-ups in the Dutch ICT Industry 1990-2000," Research Paper ERS-2003-070-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!]
  4. Verduyn, J.K., 2003. "The interrelatedness of family firm and entrepreneur : a life course approach," Serie Research Memoranda 0022, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics. [Downloadable!]
  5. Geroski, Paul A, 1999. "The Growth of Firms in Theory and in Practice," CEPR Discussion Papers 2092, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  6. Harald Strotmann & Andreas Koch, 2005. "The Impact of Functional Integration and Spatial Proximity on the Post-entry Performance of Knowledge Intensive Business Service Firms," IAW Discussion Papers 18, Institut für Angewandte Wirtschaftsforschung (IAW). [Downloadable!]
  7. Oort, F.G. van & Stam, F.C., 2006. "Agglomeration Economies and Entrepreneurship in the ICT Industry," Research Paper ERS-2006-016-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!]
  8. E. Stam & E. Garnsey, 2005. "New Firms Evolving in the Knowledge Economy; problems and solutions around turning points," Papers on Economics and Evolution 2005-05, Max Planck Institute of Economics, Evolutionary Economics Group. [Downloadable!]
  9. Erik Stam & Karl Wennberg, 2009. "The roles of R&D in new firm growth," Small Business Economics, Springer, vol. 33(1), pages 77-89, June. [Downloadable!] (restricted)
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  10. Veronique Schutjens & Erik Stam, . "The Fragile Success of Team Start-ups," Papers on Entrepreneurship, Growth and Public Policy 2005-17, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group. [Downloadable!]
  11. Jacqueline Snijders & Sander Baljé, 1999. "Entrepreneurship in the Netherlands: Ambitious entrepreneurs: the driving force for the next millennium," Scales Research Reports A199817, EIM Business and Policy Research. [Downloadable!]
  12. Stam, F.C. & Schutjens, V., 2004. "The Performance Of Team Start-Ups In The First Phases Of The Life Course," Research Paper ERS-2004-097-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!]
  13. Garnsey, E. & Stam, F.C. & Heffernan, P. & Hugo, O., 2003. "New Firm Growth: Exploring Processes and Paths," Research Paper ERS-2003-096-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!]
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