[Show abstract][Hide abstract] ABSTRACT: We examine prestart determinants of the demand for publicly funded external support to new ventures. We also investigate the effects of different types of such support on subsequent firm growth. Adopting resource-based and information asymmetry approaches, we argue that the entrepreneurs who ask for publicly funded prestart support are more likely to face information asymmetries with regard to resource providers, which in turn depend on their level of human and social capital. We also suggest that intangible support oriented towards knowledge generation would be the most beneficial. A series of two-stage treatment effects models applied to a representative sample of new firms in Navarra (Spain) offer considerable support to our predictions. Implications for research and policy are discussed.
Environment and Planning C Government and Policy 01/2011; 29(5):821-847. · 1.16 Impact Factor
[Show abstract][Hide abstract] ABSTRACT: The successful establishment and subsequent development of new firms have long been a source of interest for researchers. However, there is still limited evidence with regard to causes of both start-up size and firm growth in transitional contexts characterised by extreme conditions such as Kosova. In this study we examine entrepreneurial and institutional factors influencing initial size and subsequent growth by using data collected by structured interviews with 555 firm founders. Results show that entrepreneurs' intentions to grow the business have a strong positive influence on both variables, whereas their formal education is negatively related to initial size and growth. Our findings also suggest that, in the absence of a strong institutional framework, informal barriers have emerged and tend to hinder firm growth in this particular context.
Post Communist Economies 09/2010; 22(3):411-426. · 0.46 Impact Factor
[Show abstract][Hide abstract] ABSTRACT: Purpose – The paper is aims at investigating the contribution of fast-growing firms to employment and the determinants of fast growth in Kosova, which can be considered an environment characterized by a transitional period and extreme conditions for entrepreneurship. Design/methodology/approach – The paper was based on the data collected from face-to-face interviews with 585 firm founders. The contribution of firms to job creation was computed by using descriptive statistics and then an ordinal logit regression model was employed to explore the determinants of fast growth. Findings – Results indicate that the contribution of fast-growing firms to employment in this environment is lower than that in Western and developed countries. Findings also suggest that fast growth is positively affected by specific human capital, intentions to grow and the ability to deal with external barriers, while having a university degree is found to be negatively related to fast growth. Research limitations/implications – This paper provides a better understanding of the phenomenon of fast-growing firms and has several theoretical and practical implications. Importantly, the research on fast-growing firm is still not mature and the overall picture on fast-growing firms have yet to be built. Originality/value – Most of the empirical evidence on fast-growing firms comes from developed countries. This paper provides the empirical evidence from a transitional yet extreme context to further our knowledge on the topic of firm's fast growth.
Journal of Small Business and Enterprise Development 08/2010; 17(3):350-370.
[Show abstract][Hide abstract] ABSTRACT: Though time is an important dimension of the venture creation process, our understanding of why some entrepreneurs are able to act more quickly than others is limited. Equally, not much is known about the relationship between venture creation speed and the subsequent venture growth. In this paper, we use a resource-based perspective to provide insights into the factors that quicken or retard venture creation and to explore how speed impacts on subsequent growth. This is important because the topic remains generally underresearched and because even less is understood about venture creation speed in the context of South American economies. Data were collected from face-to-face interviews with 647 entrepreneurs in Argentina, Brazil, Chile, and Peru. Using a multivariate regression framework, we find that entrepreneurs make use of their human and social capital resources to shape the speed by which their venture is created. Moreover, their perceptions of unfavorable environmental conditions seem to retard venture creation. Findings also suggest that entrepreneurs who take more time to create a more solid resource base tend to receive better growth outcomes. Implications from the findings are discussed.
Journal of Small Business Management 06/2010; 48(3):302 - 324. · 1.39 Impact Factor
[Show abstract][Hide abstract] ABSTRACT: Time is central to our understanding of entrepreneurship. However, while prior research has shown a general link between decision speed and venture performance, little is known about what factors influence the speed of venture creation. Equally, little research has been conducted on how venture creation speed impacts on venture growth. This paper examines the determinants and growth implications of venture creation speed from a social constructionist perspective, which sees that time both shapes and is shaped by individuals, social contexts and spatial structures. We, therefore, investigate the influence of entrepreneurial characteristics, external support, institutional influences and the regional context in which venture creation speed occurs and subsequently impacts on growth in new ventures. Results from structured interviews with 381 active de novo entrepreneurs in Catalonia (Spain) show a positive relationship between prior entrepreneurial experience and speed. Interestingly, support from potential suppliers and customers is useful not only for speed but also for the subsequent growth of the venture. In contrast, business planning retards venture creation and fails to lead to an improvement in growth. Results also indicate a positive, but weak, relationship between speed and growth, once entrepreneurial, environmental and venture characteristics are held constant. The paper subsequently discusses these findings and suggests further research directions and practical implications.
Entrepreneurship and Regional Development 07/2008; 20(4):317-343. · 0.94 Impact Factor
[Show abstract][Hide abstract] ABSTRACT: New ventures are increasingly playing an important role in Latin American economies. However, little is known about the determinants
of new firm growth in this context. The purpose of this study is to gain an understanding of the factors influencing new firm
growth in Argentina, Brazil, Mexico and Peru. Individual, organizational and environmental factors are included in an empirical
model, which is tested using data collected by face-to-face interviews with 582 entrepreneurs. Different specifications of
employment growth and regression approaches are employed. Results suggest that growth strongly depends on the characteristics
of the entrepreneur. National environment and firm-related factors are also important factors in determining growth.
International Entrepreneurship and Management Journal 02/2008; 4(1):79-99. · 5.05 Impact Factor
[Show abstract][Hide abstract] ABSTRACT: We test two alternative perspectives on the start-up size and subsequent growth of new firms in a heavily regulated (HR) economy and a lightly regulated (LR) economy. The first argues that, in an HR economy, there will be fewer new firms, and those that do start will be larger than those in an LR economy, but they will grow more slowly. A second perspective is that regulation does not influence the scale of entrepreneurship – merely its distribution between that which is registered and that which is not registered. Using parallel datasets for HR Spain and LR Britain we find some support for both perspectives. Specifically we find that registered new firms in Britain do start smaller than in Spain and do grow faster. However, when both registered and unregistered firms are included, these differences disappear. Journal of International Business Studies (2008) 39, 688–704. doi:10.1057/palgrave.jibs.8400340
Journal of International Business Studies 01/2008; 39(4):688-704. · 3.56 Impact Factor
[Show abstract][Hide abstract] ABSTRACT: The relationships and differences in how academic staff perceive their work and organisation are of great importance for human resource strategies in the higher education sector. The present study examines work-related attitudes of academic staff, namely job satisfaction, self-efficacy and organisational commitment. The purpose is to analyse how these attitudes differ among groups of individuals. Results show that there is an alternative way of classifying academic staff into distinct groups based on work-related attitudes apart from the conventional classification based on position alone. Findings suggest that university managers should be careful in balancing between different systems of control or incentive.
Tertiary Education and Management 06/2005; 11(2):147-166.
[Show abstract][Hide abstract] ABSTRACT: The aims of this research are to determine and to compare factors which influence start-up size and those that influence subsequent employment change of new businesses over four years. A comparison between new firms started in selected areas of England and Spain is made. Data was collected by face- to-face interviews with 231 English and 182 Spanish firm founders using the same questionnaire in the two countries. In order to provide a full explanation of start-up size and employment change, explanatory variables are based on conditions observable at the pre-, at- and post-start stages. First, a multiple regression analysis is estimated to identify the determinants of initial size of the firm. Results show that start-up size is strongly influenced by the starting resources of the entrepreneur and industry effects. However, different human capital variables influence start-up size in the two selected countries. Second, four groups of firms are identified in terms of their employment change in both samples. Surprisingly, the biggest firms at start-up are those that have job losses. These firms converge over time with a group of slow growers. Neutral employment change is observed in a group of mainly sole owners and there is also a group of fast growers. The determinants of these four employment change patterns are then analysed using an ordered probit model. Results show that start-up size is highly significant in explaining all patterns of change. Fast-growing firms are reflected in several factors in both countries, such as formal planning, workforce training and owner managerial skills. Different results are found regarding founder-specific characteristics, use of external advice and sources of finance. Findings indicate that new firms learn as they age and there is therefore an adjustment process of firm size over time. Findings also suggest that new firm growth will depend on the entrepreneur's ability to acquire skills through learning-by-doing.
[Show abstract][Hide abstract] ABSTRACT: To whom should potential new firm founders turn to for advice? This article identifies buzz as a mechanism to transfer the knowledge of who to turn to for advice. Previous work on buzz has linked it with clusters or compared local buzz with international pipelines of information. The interaction between place and business advice was examined in surveys of 599 new firm founders in England and 381 new firm founders in Catalonia (Spain). Our models exploit the denominator from a heteroskedastic probit to capture the local variation in uncertainty We show empirically how buzz can add to collective institutions outside of clusters. Our findings show that buzz influences the taking of advice and the uncertainty surrounding advice. Besides, there were strong impacts from policy on the take-up of advice in Catalonia, but it did not change the variations in uncertainty.