IDEAS home Printed from https://ideas.repec.org/a/pep/journl/v12y2008i3p93-114.html
   My bibliography  Save this article

A Study of Entrepreneur and Small Businesses' Required Returns and Empirical Observation of Actual Entrepreneurial Returns Attained

Author

Listed:
  • Charles John Conrick, IV

    (Dickinson State University)

Abstract

The purpose of this study was to examine previous literature on Entrepreneurs’ and small businesses’ (hereinafter simply, Entrepreneurs) required rates of return coupled with empirical observation of small business returns. It is hoped that this study provides Entrepreneurs with a guideline of what they should expect to earn in the marketplace given the risk they take coupled with an analysis of what actually has happened. Previous returns were compiled from the Institute of Business Appraisers (IBA) database of small business sales from the years 1982 to 2000. Additionally, publicly traded, large company earnings and returns were gathered for the same time frame from Standard and Poor’s (S&P) Compustat database. Both sets of data are large samples, approximately 11,000 from IBA and 19,000 from S&P. Thus, it is assumed that statistical power of sampling error is minimized and returns reflect approximate reality.

Suggested Citation

  • Charles John Conrick, IV, 2008. "A Study of Entrepreneur and Small Businesses' Required Returns and Empirical Observation of Actual Entrepreneurial Returns Attained," Journal of Entrepreneurial Finance, Pepperdine University, Graziadio School of Business and Management, vol. 12(3), pages 93-114, Summer.
    • Handle: RePEc:pep:journl:v:12:y:2008:i:3:p:93-114
    as

    Download full text from publisher

    File URL: http://jefsite.org/RePEc/pep/journl/jef-2008-12-3-f-conrick.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Entrepreneur; Cost of Capital; Required Return;
    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pep:journl:v:12:y:2008:i:3:p:93-114. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Craig Everett (email available below). General contact details of provider: https://edirc.repec.org/data/bapepus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.