Economics at your fingertips  

Variable Risk Preferences in New Firm Growth and Survival

Karl Wennberg (), Frédéric Delmar () and Alexander McKelvie ()
Additional contact information
Alexander McKelvie: Syracuse university, Postal: Department of Entrepreneurship & Emerging Enterprises, Whitman School of Management, Syracuse University, 721 University Ave., Syracuse, NY 13244 , USA

No 272, Ratio Working Papers from The Ratio Institute

Abstract: We outline and test a decision-making theory of new venture growth and survival. Building upon research in entrepreneurship and decision making under risk, we hypothesize that entrepreneurs’ attention to survival and aspiration reference points changes based on venture age (¬experience-based learning), size (differences in decision complexity¬), and performance decision domain. Examining a panel of 14,760 new ventures in the professional services sector, our findings show how risk preferences change as a venture ages and increases in size. This approach offers a more nuanced view of decision making under risk and provides a theoretical explanation for the common patterns of new ventures’ probability of exit and growth diminishing with age and size.

Keywords: Growth; Survival; Aspiration levels; Focus of attention; New ventures; Risk preferences (search for similar items in EconPapers)
JEL-codes: L26 M13 (search for similar items in EconPapers)
Pages: 50 pages
Date: 2016-05-12
References: Add references at CitEc
Citations: View citations in EconPapers (19) Track citations by RSS feed

Downloads: (external link) ... growth-and-survival/ (application/pdf)

Related works:
Journal Article: Variable risk preferences in new firm growth and survival (2016) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this paper

More papers in Ratio Working Papers from The Ratio Institute The Ratio Institute, P.O. Box 5095, SE-102 42 Stockholm, Sweden. Contact information at EDIRC.
Bibliographic data for series maintained by Martin Korpi ().

Page updated 2021-06-16
Handle: RePEc:hhs:ratioi:0272