1,720,991 research outputs found
Dealing with heterogeneity problems and causal effect estimation in entrepreneurship research
No full textThis paper deals with causal effect estimation strategies in highly heterogeneous empirical settings such as entrepreneurship. We argue that the clearer used of modern tools developed to deal with the estimation of causal effects in combination with our analysis of different sources of heterogeneity in entrepreneurship can lead to entrepreneurship with higher internal validity. We specifically lend support from the counterfactual logic and modern research of estimation strategies for causal effect estimation
Hunting for new employment: the role of high-growth firms
No full textThis study investigates the role of high growth firms for the creation of new employment in Sweden during the 1987-96 period. Our data set is unique in the sense that it captures both enterprise and company group levels of analysis, and in that organic growth can be separated from growth through acquisitions. The results do not support the notion that a small elite of high growth firms accounts for a majority share of employment creation. They rather strengthen the belief that birth and modest growth of large numbers of small and young firms create the lion’s share of genuinely new jobs. We hold that this should not be taken as a sign that high growth firms are unimportant, but as suggesting they are too few
Where do they come from? Prevalence and characteristics of nascent entrepreneurs
No full textThis article reports on a unique study of a large, random sample of business start-ups that were identified prior to the actual, commercial launch of the ventures. The purpose of this article is twofold. The first is to present frequencies on the involvement of the Swedish population in the small business sector (particularly in firm start-ups) and to compare these with estimates from Norway and the USA, which are based on studies using a similar research design. We also discuss the possible reasons for the country differences that emerge. Secondly, we analyse the characteristics of nascent entrepreneurs (i.e. individuals trying to start an independent business). We also compare these characteristics for sub-groups within the sample and with characteristics of business founders as they appear in theoretical accounts or retrospective empirical studies of surviving small firms. \ud
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In order to get a representative sample from the working age population, respondents \ud
(n= 30 427) were randomly selected and interviewed by telephone. We found that 2.0 % of the Swedish population at the time of the interview were trying to start an independent business. Sweden had a significantly lower prevalence rate of nascent entrepreneurs compared to Norway and the USA. Nascent entrepreneurs were then compared to a control group of people not trying to start a business. The results confirmed findings from previous studies of business founders pointing at the importance of role models and the impression of self-employment obtained through these, employment status, age, education and experience. Marital status, the number of children in the household, and length of employment experience were unrelated to the probability of becoming a nascent entrepreneur. The sex of the respondent was the strongest distinguishing factor. Importantly, the results suggest that while we have a reasonably good understanding of the characteristics associated with men going into business for themselves, the type of variables investigated here have very limited ability to predict nascent entrepreneur status for women
Some Important Observations Concerning Job Creation by Firm Size and Age
No full textThe research presented in this research note relates to two partly overlapping topics in previous research on SMEs. Firstly, it extends earlier findings regarding the role of SMEs in job creation. Secondly, it illustrates in a quite dramatic fashion the importance of definitions and operationalisations in research on small business growth, something which has been suggested in earlier reviews of that line of research
High-Growth Firms And Their Contribution To Employment: The Case Of Sweden 1987-96
No full textThis study explores how high growth firms in Sweden contribute to job creation. Using the population of all firms in Sweden with more than 20 employees in existence in 1996 (n= 11,748), we analyse their annual development for the previous 10 years (1987 to 1996). We define as a sub-sample of high growth firms those ten percent of all firms that contributed most in annual average absolute employment growth (n= 1 153). The results indicate that young and medium sized firms, often in young and growing industries, create new jobs to a great extent. However, the total contribution to job creation by high growth firms is less than that of newly established firms. Implications for research and practice are offered
Where do they come from? Prevalence and characteristics of nascent entrepreneurs
No full textThis paper reports on a unique study of a large, random sample of business start-ups that were identified prior to the actual, commercial launch of the ventures. The purpose of this paper is two-fold. First, to present frequencies on the involvement of the Swedish population in the small business sector (particularly in start-ups of firms) and to compare these with estimates from Norway and the USA, which are based on studies using a similar research design. The authors also discuss the possible reasons for the differences that emerge between countries. Second, the characteristics of nascent entrepreneurs (i.e. individuals trying to start an independent business) are analysed and compared for sub-groups within the sample and with characteristics of business founders as they appear in theoretical accounts or retrospective empirical studies of surviving all firms. In order to get a representative sample from the working age population, respondents (n = 30,427) were randomly selected and interviewed by telephone. It was found that 2.0% of the Swedish population at the time of the interview were trying to start an independent business. Sweden had a significantly lower prevalence rate of nascent entrepreneurs compared to Norway and the USA. Nascent entrepreneurs were then compared to a control group of people not trying to start a business. The results confirmed findings from previous studies of business founders pointing to the importance of role models and the impression of self-employment obtained through these, employment status, age, education and experience. Marital status, the number of children in the household, and length of employment experience were unrelated to the probability of becoming a nascent entrepreneur. The gender of the respondent was the strongest distinguishing factor. Importantly, the results suggest that while one has a reasonably good understanding of the characteristics associated with men going into business for themselves, the type of variables investigated here have very limited ability to predict nascent entrepreneur status for women.\ud
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Arriving at the high growth firm
No full textThis study explores heterogeneity in how firms have achieved high growth. Using the population of all firms in Sweden with more than 20 employees in existence in 1996 (n= 11,748), we analyzed their development for each year of the previous 10 years (1987 to 1996). From this population of all firms in Sweden, multiple criteria were used to define a sample of high growth firms (n = 1,501). Using nineteen different measures of firm growth (such as relative and absolute sales growth, relative and absolute employee growth, organic growth versus acquisition growth, and the regularity and volatility of growth rates over the ten year period) we identified seven different types of firm growth patterns. These patterns were related to firm age and size as well as industry affiliation. Implications for research and practice are offered
Firm Size Expectations of Nascent Entrepreneurs
No full textThe 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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