Regulation, New Venture Creation, and Resource-Advantage Theory: An Analysis of the U.S. Brewing Industry

Wesley M. Friske and Miles A. Zachary

Entrepreneurship Theory and Practice, 2019, vol. 43, issue 5, 999-1017

Abstract: Regulation is an important means by which policymakers address social costs. However, recent research suggests that managing social costs often comes at the expense of entrepreneurial activity. We explore this duality by extending resource-advantage theory to examine the effects of excise taxes, small business tax credits and exemptions, and sales restrictions on rates of new venture creation in the U.S. brewing industry. Our longitudinal analysis of state-level brewery regulations reveals that taxes and sales restrictions have adverse but limited effects on new venture creation over time. Furthermore, tax credits and exemptions are positively associated with growth rates of new ventures.

Keywords: new ventures; government policy; regulation; growth; Resource-Advantage theory (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:entthe:v:43:y:2019:i:5:p:999-1017

DOI: 10.1177/1042258718760840

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