New firm development: identifying dormant, drowsy and active firms

Lars Kolvereid, Oxana Bulanova and Espen J. Isaksen

International Journal of Entrepreneurial Venturing, 2018, vol. 10, issue 6, 619-637

Abstract: Using a theoretical framework developed by Song et al. (2008) the present survey uses initial characteristics of the entrepreneur, the opportunity and the resources available to the firm at start-up to predict activity in surviving businesses 12 years after birth. The initial data collection took place in 2002. To measure activity, we categorise businesses based on their membership in government registers from 2002 to 2014, enabling us to distinguish between dormant, drowsy (semi dormant) and active firms. The results indicate that entrepreneurial competence and commitment to the business, the novelty and early exploitation of the opportunity, team start-up as well as the financial resources available at start-up predict activity in the business. The findings have important implications for practitioners and scholars.

Keywords: active firms; dormant firms; start-up conditions. (search for similar items in EconPapers)
Date: 2018
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