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Entry strategies, founder's human capital and start-up size

Author

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  • Sandra Gottschalk
  • Kathrin Muller
  • Michaela Niefert

Abstract

This paper analyses empirically the determinants of new-born firms' initial size. As survival prospects of young firms tend to be linked to start-up size, a better understanding of the factors influencing start-up size is crucial. We find that in addition to industry effects start-up size is considerably influenced by firms' entry strategies. Firms with entry strategies based on the exploitation of new market opportunities exhibit a higher initial size while start-ups established for reasons of necessity appear to start at a smaller scale. Furthermore, founders' human capital is confirmed to be an important predictor of start-up size also in Germany.

Suggested Citation

  • Sandra Gottschalk & Kathrin Muller & Michaela Niefert, 2010. "Entry strategies, founder's human capital and start-up size," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 11(4), pages 403-423.
    • Handle: RePEc:ids:ijesbu:v:11:y:2010:i:4:p:403-423
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    Cited by:

    1. Gude, Hardy & Metzger, Georg & Kohn, Karsten & Ullrich, Katrin & Fryges, Helmut & Gottschalk, Sandra & Müller, Kathrin & Murmann, Martin & Niefert, Michaela, 2011. "KfW/ZEW-Gründungspanel 2011: Vom Aufschwung getragen? Startschwierigkeiten und Wachstumschancen junger Unternehmen," ZEW Expertises, ZEW - Leibniz Centre for European Economic Research, number 161820, September.
    2. Gude, Hardy & Kohn, Karsten & Ullrich, Katrin & Fryges, Helmut & Gottschalk, Sandra & Müller, Kathrin & Niefert, Michaela, 2010. "KfW/ZEW-Gründungspanel 2010: Aufbruch nach dem Sturm. Junge Unternehmen zwischen Investitionsschwäche und Innovationsstrategie," ZEW Expertises, ZEW - Leibniz Centre for European Economic Research, number 161819, September.
    3. Füner, Lena & Berger, Marius & Bersch, Johannes & Hottenrott, Hanna, 2023. "Local networks and new business formation," ZEW Discussion Papers 23-067, ZEW - Leibniz Centre for European Economic Research.

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