When to Start a New Firm?: Modelling the Timing of Novice and Serial Entrepreneurs

Thomas Gries and Wim Naudé

No RP2009-39, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: The success of new start-up firms often depends on timing. It is valuable for the potential entrepreneur to wait for the right moment before starting a new firm. In this paper we provide a theoretical model to determine the optimal time for starting a new firm. We integrate insights from the real option theory with the theory on entrepreneurial market entry. An important and novel feature of our model is that it allows the start-up timing decisions of novice and serial entrepreneurs to be distinguished.

Keywords: Business enterprises; Choice; Mathematical models (Decision making); Entrepreneurship; Stochastic processes (search for similar items in EconPapers)
Date: 2009
New Economics Papers: this item is included in nep-bec, nep-com, nep-ent and nep-sbm
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Persistent link: https://EconPapers.repec.org/RePEc:unu:wpaper:rp2009-39

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