Firm Size Expectations of Nascent Entrepreneurs

Posted: 4 Nov 2009

See all articles by Per Davidsson

Per Davidsson

Queensland University of Technology - Brisbane Graduate School of Business

Frederic Delmar

affiliation not provided to SSRN

Date Written: 1999

Abstract

Because a firm'sstart size and subsequentgrowth are significant for creating jobs, the expectations of nascententrepreneurs regarding these factors are investigated.A decision modelwhose dependent variable is the expected size of the firm is presented andtested by the researchers. The data for this longitudinal study were collected from 405 self-identifiedSwedish nascent entrepreneurs over a two-year period. Four componentsrelated to size expectations were tested both separately and in combination,including initial human capital, personal/business goals, environmental andbusiness context, and gestation activities.Both the separate and combinedmodel results are presented. The findings indicate that most nascent entrepreneurs have low expectationsregarding size and growth.A nascent entrepreneur's level of earlycommitment, as based on incorporation, income expectations, growth goals, andnumber of gestation activities, may have some predictive capacity based on theutilized dependent variables.However, the findings further suggest thatthe ability to predict startup development is limited. (AKP)

Keywords: Growth goals, Expectations, Firm growth, Nascent entrepreneurs, Organizational goals, Startups, Job creation, Firm size

Suggested Citation

Davidsson, Per and Delmar, Frederic, Firm Size Expectations of Nascent Entrepreneurs (1999). University of Illinois at Urbana-Champaign's Academy for Entrepreneurial Leadership Historical Research Reference in Entrepreneurship. Available at SSRN: https://ssrn.com/abstract=1497839

Per Davidsson (Contact Author)

Queensland University of Technology - Brisbane Graduate School of Business ( email )

Brisbane
Australia
+61 7 3864 2051 (Phone)
+61 7 3864 1299 (Fax)

HOME PAGE: http://www.qut.edu.au/ph_server_query.do

Frederic Delmar

affiliation not provided to SSRN

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