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Entrepreneurial Start-up and Growth: A Classification of Problems

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  • David E. Terpstra
  • Philip D. Olson

Abstract

The purpose of this study was to develop a classification scheme for the types of problems encountered by emerging organizations using an open-ended approach to generating the Initial response data. The CEOs of 121 Inc . 500 firms were asked to state the most significant problem during their firms’ first year and during a later growth stage. The open-ended responses were systematically sorted Into classes of problems, and the resulting classification schemes appeared to be more comprehensive and exhaustive than some previously developed schemes that relied on closed-ended response categories to develop their problem classes. Once developed, the classification schemes were used to examine the relative frequencies of types of problems at both the start-up and later growth stage. The findings indicated mixed support for previous research linking types of dominant problems to different stages of organizational development.

Suggested Citation

  • David E. Terpstra & Philip D. Olson, 1993. "Entrepreneurial Start-up and Growth: A Classification of Problems," Entrepreneurship Theory and Practice, , vol. 17(3), pages 5-20, April.
    • Handle: RePEc:sae:entthe:v:17:y:1993:i:3:p:5-20
    DOI: 10.1177/104225879301700301
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    1. Bernardo Balboni & Guido Bortoluzzi, 2015. "Business Model Adaptation and the Success of New Ventures," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 11(1), pages 119-140.
    2. James J. Chrisman & Jess H. Chua & Lloyd P. Steier, 2002. "The Influence of National Culture and Family Involvement on Entrepreneurial Perceptions and Performance at the State Level," Entrepreneurship Theory and Practice, , vol. 26(4), pages 113-130, July.
    3. Sexton, Donald L. & Upton, Nancy B. & Wacholtz, Larry E. & McDougall, Patricia P., 1997. "Learning needs of growth-oriented entrepreneurs," Journal of Business Venturing, Elsevier, vol. 12(1), pages 1-8, January.
    4. Abetti, Pier A. & Phan, Phillip H., 2004. "Teaching note: Zobele chemical industries: the evolution of a family company from flypaper to globalization (1919-2001)," Journal of Business Venturing, Elsevier, vol. 19(4), pages 601-613, July.
    5. Dutta, Dev K. & Thornhill, Stewart, 2008. "The evolution of growth intentions: Toward a cognition-based model," Journal of Business Venturing, Elsevier, vol. 23(3), pages 307-332, May.
    6. W. Gibb Dyer Jr., 1995. "Toward a Theory of Entrepreneurial Careers," Entrepreneurship Theory and Practice, , vol. 19(2), pages 7-21, January.
    7. Linda F. Tegarden & Ann E. Echols & Donald E. Hatfield, 2000. "The Value of Patience and Start-up Firms: A Re-Examination of Entry Timing for Emerging Markets," Entrepreneurship Theory and Practice, , vol. 24(4), pages 41-58, July.
    8. Hans Löfsten & Anders Isaksson & Heikki Rannikko, 2023. "Entrepreneurial networks, geographical proximity, and their relationship to firm growth: a study of 241 small high-tech firms," The Journal of Technology Transfer, Springer, vol. 48(6), pages 2280-2306, December.
    9. Rana Basu & Dhrubes Biswas, 2013. "A Study On Indian Higher Educational Institute Based Business Incubators," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 21(02), pages 199-225.
    10. Yixiao Li & Zhanda Zhang & Ruiqin Wang & Yuangao Chen, 2019. "Consumer Purchase Intention toward Crowdfunding Products/Services: A Cost–Benefit Perspective," Sustainability, MDPI, vol. 11(13), pages 1-21, June.
    11. Lars Kolvereid, 1996. "Organizational Employment versus Self-Employment: Reasons for Career Choice Intentions," Entrepreneurship Theory and Practice, , vol. 20(3), pages 23-31, April.
    12. Maja Kocevar & Dietmar Sternad, 2014. "The Role of Serbian Higher Business Education in Overcoming the Challenges of SME Managers," International Journal of Management, Knowledge and Learning, International School for Social and Business Studies, Celje, Slovenia, vol. 3(1), pages 23-42.
    13. Sylvain Bureau & Elisa Salvador & Jacqueline Fendt, 2012. "Small firms and the growth stage: can entrepreneurship education programmes be supportive?," Post-Print hal-02530098, HAL.
    14. Giarratana, Marco S., 2004. "The birth of a new industry: entry by start-ups and the drivers of firm growth: The case of encryption software," Research Policy, Elsevier, vol. 33(5), pages 787-806, July.
    15. Erik Stam & Elizabeth Garnsey, 2006. "New Firms Evolving in the Knowledge Economy: Problems and Solutions Around Turning Points," Chapters, in: Wilfred Dolfsma & Luc Soete (ed.), Understanding the Dynamics of a Knowledge Economy, chapter 4, Edward Elgar Publishing.
    16. Phan, Phillip H. & Butler, John E. & Lee, Soo H., 1996. "Crossing mother: Entrepreneur-franchisees' attempts to reduce franchisor influence," Journal of Business Venturing, Elsevier, vol. 11(5), pages 379-402, September.
    17. Florian Kreer & René Mauer & Steffen Strese & Malte Brettel, 2018. "On private equity exits of family firms in the German Mittelstand," Journal of Business Economics, Springer, vol. 88(3), pages 503-529, May.
    18. Michail Kouriloff, 2000. "Exploring Perceptions of A Priori Barriers to Entrepreneurship: A Multidisciplinary Approach," Entrepreneurship Theory and Practice, , vol. 25(2), pages 59-80, December.
    19. Alina Zapalska & Geoff Perry, 2000. "Entrepreneurial Start-Up and Growth : A Case Study of Thailand," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 15(Spring 20), pages 78-95.
    20. Susan Mueller & Taiga Brahm & Heidi Neck, 2015. "Service Learning in Social Entrepreneurship Education: Why Students Want to Become Social Entrepreneurs and How to Address Their Motives," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 23(03), pages 357-380, September.
    21. Monia Lougui & Kristina Nyström, 2014. "What obstacles do entrepreneurs encounter?," Journal of Entrepreneurship and Public Policy, Emerald Group Publishing Limited, vol. 3(2), pages 275-291, October.

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