How Business Opportunities Constrain Young Technology-Based Firms from Growing into Medium-Sized Firms

How Business Opportunities Constrain Young Technology-Based Firms from Growing into Medium-Sized... This paper analyses how the novelty of business opportunities at start-up constrains young technology-based firms from attaining substantial growth and becoming medium-sized. Data from 262 young Swedish technologybased firms are used to estimate a logit regression model relating different types of opportunities to the probability of becoming medium-sized. The results show that firms which seek to exploit opportunities based on new market knowledge are less likely to attain substantial growth than firms that seek to exploit opportunities based on existing market knowledge. The former class of firms can nevertheless increase the probability of such growth by actively seeking external financing. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Small Business Economics Springer Journals

How Business Opportunities Constrain Young Technology-Based Firms from Growing into Medium-Sized Firms

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Publisher
Kluwer Academic Publishers
Copyright
Copyright © 2005 by Springer
Subject
Business and Management; Management; Microeconomics; Entrepreneurship; Industrial Organization
ISSN
0921-898X
eISSN
1573-0913
D.O.I.
10.1007/s11187-003-3803-6
Publisher site
See Article on Publisher Site

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