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Firm Size Expectations of Nascent Entrepreneurs

Delmar, Frederic , Davidsson, Per, & Aronsson, Magnus (1999) Firm Size Expectations of Nascent Entrepreneurs. In Reynolds, P. (Ed.) Frontiers of Entrepreneurship Research 1999. Babson College, Wellesley, M.A., pp. 90-104.

Abstract

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: 5833
Item Type: Book Chapter
Additional Information: For more information about this book please refer to the publisher's website (link above) or contact the author Per Davidsson at per.davidsson@qut.edu.au
Additional URLs:
Keywords: Per Davidsson, nascent entrepreneurs, firm size, human capital, entrepreneurship, firm growth
ISBN: 978 1 84542 575 3
Subjects: Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > BUSINESS AND MANAGEMENT (150300)
Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > BUSINESS AND MANAGEMENT (150300) > Small Business Management (150314)
Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > BUSINESS AND MANAGEMENT (150300) > Business and Management not elsewhere classified (150399)
Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > BUSINESS AND MANAGEMENT (150300) > Innovation and Technology Management (150307)
Divisions: Current > Research Centres > Australian Centre for Entrepreneurship
Current > QUT Faculties and Divisions > QUT Business School
Current > Schools > School of Management
Copyright Owner: Copyright 1999 Babson College
Deposited On: 10 Apr 2007
Last Modified: 10 Aug 2011 23:50

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