Entry strategies, founder's human capital and start-up size

Sandra Gottschalk, Kathrin Muller and Michaela Niefert

International Journal of Entrepreneurship and Small Business, 2010, vol. 11, issue 4, 403-423

Abstract: This paper analyses empirically the determinants of new-born firms' initial size. As survival prospects of young firms tend to be linked to start-up size, a better understanding of the factors influencing start-up size is crucial. We find that in addition to industry effects start-up size is considerably influenced by firms' entry strategies. Firms with entry strategies based on the exploitation of new market opportunities exhibit a higher initial size while start-ups established for reasons of necessity appear to start at a smaller scale. Furthermore, founders' human capital is confirmed to be an important predictor of start-up size also in Germany.

Keywords: start-ups; firm size; entry strategies; new firms; Germany; company founders; survival prospects; new business ventures; new markets; opportunities; exploitation; necessity; small and medium-sized enterprises; SMEs; entrepreneurs; entrepreneurship; human capital. (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijesbu:v:11:y:2010:i:4:p:403-423

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