Firm size expectations of nascent entrepreneurs

Delmar, Frederic & Davidsson, Per (2005) Firm size expectations of nascent entrepreneurs. In Babson-Kaufmann Entrepreneurship Research Exchange 2005.


The purpose of this paper was to examine the factors affecting the future firm size expectations of nascent entrepreneurs. This was done by testing a decision model on a unique data set composed of a random sample of nascent entrepreneurs. The proposed model is based on four different components that were tested together as well as separately in order to assess their unique and combined effect on size expectations. The four components were: initial human capital, personal/business goals, environmental and business context, and gestation activities. The dependent variables used in this paper reflect the growth trajectories that newly founded firms can take. While it turned out difficult to predict start size, the suggested model could satisfactorily predict expected early growth. The results indicate that those nascent entrepreneurs expecting high growth also expected larger start-size. Their goal was to make the future business their main income source. This was to be achieved by an expansion strategy or by a harvesting strategy.

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ID Code: 5286
Item Type: Conference Paper
Refereed: Yes
Keywords: nascent entrepreneurs, new venture, small business
Subjects: Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > BUSINESS AND MANAGEMENT (150300) > Small Business Management (150314)
Divisions: Current > Research Centres > Australian Centre for Entrepreneurship
Current > QUT Faculties and Divisions > QUT Business School
Current > Schools > School of Management
Copyright Owner: Copyright 2005 (please consult author)
Deposited On: 19 Oct 2006 00:00
Last Modified: 10 Aug 2011 13:50

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