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What determines the growth ambition of Dutch early-stage entrepreneurs?

Author

Listed:
  • Ingrid Verheul
  • Linda Van Mil

Abstract

This paper investigates the determinants of the ambition to grow among Dutch early-stage entrepreneurs. We use GEM adult population survey data for The Netherlands. Merging cross-sectional data of the years 2002-2007 leads to a sample of 409 nascent entrepreneurs and 336 young business owners. Growth ambition is measured by asking respondents which statement fits him or her best: 1) I want my company to be as large as possible; 2) I want a size I can manage myself or with a few key employees. We find that nascent entrepreneurs and young business owners are equally likely to strive after growth. For nascent entrepreneurs fear of failure and entrepreneurial self-efficacy are important factors explaining growth ambition. Starting a business because of perceiving and exploiting a business opportunity (as opposed to necessity entrepreneurship) is an important driver of growth ambition for all early-stage entrepreneurs, but in particular for nascents.

Suggested Citation

  • Ingrid Verheul & Linda Van Mil, 2011. "What determines the growth ambition of Dutch early-stage entrepreneurs?," International Journal of Entrepreneurial Venturing, Inderscience Enterprises Ltd, vol. 3(2), pages 183-207.
    • Handle: RePEc:ids:ijeven:v:3:y:2011:i:2:p:183-207
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