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When is a Firm Born? Alternative Criteria and Consequences

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  • Paul Davidson Reynolds

    (Aston Business School)

Abstract

There are a number of ways to determine the birth date of a new firm. These include the date of a start-up venture’s initial transactions, initial registry listing, initial labor input, and initial profits. Utilizing the responses from the second Panel Study of Entrepreneurial Dynamics (PSED) cohort, it appears that different criteria for a firm’s birth date are associated with substantial differences in the proportion of start-ups that became new firms, the time required to become a new firm, survival following a new firm birth, and the provision of new jobs. This variation may help explain some inconsistent research findings related to firm births.

Suggested Citation

  • Paul Davidson Reynolds, 2017. "When is a Firm Born? Alternative Criteria and Consequences," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 52(1), pages 41-56, January.
    • Handle: RePEc:pal:buseco:v:52:y:2017:i:1:d:10.1057_s11369-017-0022-8
    DOI: 10.1057/s11369-017-0022-8
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    References listed on IDEAS

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    Cited by:

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    5. Elizabeth Mishkin, 2021. "Gender and Sibling Dynamics in the Intergenerational Transmission of Entrepreneurship," Management Science, INFORMS, vol. 67(10), pages 6116-6135, October.
    6. Gaillard, Alexandre & Kankanamge, Sumudu, 2018. "Entrepreneurship, Labor Market Mobility and the Role of Entrepreneurial Insurance," TSE Working Papers 18-929, Toulouse School of Economics (TSE), revised Jan 2019.
    7. Razmdoost, Kamran & Alinaghian, Leila & Linder, Christian, 2020. "New venture formation: A capability configurational approach," Journal of Business Research, Elsevier, vol. 113(C), pages 290-302.
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    10. Arenius, Pia & Engel, Yuval & Klyver, Kim, 2017. "No particular action needed? A necessary condition analysis of gestation activities and firm emergence," Journal of Business Venturing Insights, Elsevier, vol. 8(C), pages 87-92.

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    More about this item

    Keywords

    firm births; firm start-ups; firm survival; firm birth criteria; PSED;
    All these keywords.

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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