Who Starts New Firms? – Preliminary Explorations of Firms-in-Gestation

Who Starts New Firms? – Preliminary Explorations of Firms-in-Gestation Little is known about the factors which lead individuals to start a new firm. This hiatus is due to an absence of data about the gestation processes that precedes a firm birth. Most analyses have used reported self-employment as an indicator of entrepreneurial behavior and resorted to linear additive models to account for "entrepreneurship." The resulting models have not been very successful for predictions and the conception is at odds with the most salient characteristics of entrepreneur's start-up stories. These personal accounts emphasize the unique combination of events that led to a new businesses start-up. A pilot study that identified those developing new firms provides information on firms-in-gestation. Preliminary analysis using Automatic Interaction Detection (AID) explores the unique combinations of events that underlay a decision to start a new firm. Seven-in-ten startups in the U.S. may be initiated by those 25–34 years old with full-time jobs, part-time jobs, or managing another business. There is some limited support for an impact of unemployment or a "liquidity constraint" on initiating start-ups. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Small Business Economics Springer Journals

Who Starts New Firms? – Preliminary Explorations of Firms-in-Gestation

Loading next page...
 
/lp/springer_journal/who-starts-new-firms-preliminary-explorations-of-firms-in-gestation-4ByC097Iox
Publisher
Kluwer Academic Publishers
Copyright
Copyright © 1997 by Kluwer Academic Publishers
Subject
Business and Management; Management; Microeconomics; Entrepreneurship; Industrial Organization
ISSN
0921-898X
eISSN
1573-0913
D.O.I.
10.1023/A:1007935726528
Publisher site
See Article on Publisher Site

Abstract

Little is known about the factors which lead individuals to start a new firm. This hiatus is due to an absence of data about the gestation processes that precedes a firm birth. Most analyses have used reported self-employment as an indicator of entrepreneurial behavior and resorted to linear additive models to account for "entrepreneurship." The resulting models have not been very successful for predictions and the conception is at odds with the most salient characteristics of entrepreneur's start-up stories. These personal accounts emphasize the unique combination of events that led to a new businesses start-up. A pilot study that identified those developing new firms provides information on firms-in-gestation. Preliminary analysis using Automatic Interaction Detection (AID) explores the unique combinations of events that underlay a decision to start a new firm. Seven-in-ten startups in the U.S. may be initiated by those 25–34 years old with full-time jobs, part-time jobs, or managing another business. There is some limited support for an impact of unemployment or a "liquidity constraint" on initiating start-ups.

Journal

Small Business EconomicsSpringer Journals

Published: Sep 29, 2004

References

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 12 million articles from more than
10,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Unlimited reading

Read as many articles as you need. Full articles with original layout, charts and figures. Read online, from anywhere.

Stay up to date

Keep up with your field with Personalized Recommendations and Follow Journals to get automatic updates.

Organize your research

It’s easy to organize your research with our built-in tools.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

DeepDyve Freelancer

DeepDyve Pro

Price
FREE
$49/month

$360/year
Save searches from
Google Scholar,
PubMed
Create lists to
organize your research
Export lists, citations
Read DeepDyve articles
Abstract access only
Unlimited access to over
18 million full-text articles
Print
20 pages/month
PDF Discount
20% off