Success and Risk Factors in the Pre-Startup Phase

Posted: 1 Dec 2009

See all articles by Roy Thurik

Roy Thurik

Montpellier Business School; Erasmus University Rotterdam (EUR) - Centre for Advanced Small Business Economics (CASBEC); Erasmus Research Institute of Management (ERIM); EIM Netherlands - Business and Policy Research; Tinbergen Institute

Marco van Gelderen

VU University Amsterdam

Niels Bosma

affiliation not provided to SSRN

Multiple version iconThere are 2 versions of this paper

Date Written: 2003

Abstract

This resesarch evaluates the relative importance ofseveral categories of variables in explaining startup success. A sample of 517 nascent Dutch entrepreneurs was identified in 1998 (from data collected by the Entrepreneurial Research Consortium), and tracked for three years. W.B. Gartner's framework for new venture creation was used. Thisperspective identified four ways in which startup efforts differ: the individual's characteristics, organization created, environment surrounding the venture, and process of the new venture. Variables analyzed include ambition (high and low), experience (substantial and limited), perceived risk, time investment, exposure to guidance and advice agencies, age, creation of business plan, capital requirements, and type of business. It was found that few personal characteristics of nascent entrepreneurs are associated with startup success. Startup capital, market risk, starting a manufacturing firm, and starting full-time are important factors. Also indicated was that older people with limited ambition are less likely to be successful. For nascent entrepreneurs with limited ambition, a business planworks positively but negatively for those with high ambition. Extensive experience does little to predict success. However, use of information and guidance increases the chance of success among less experienced entrepreneurs. Part-time businesses were also found to be easier to start. (TNM)

Keywords: Entrepreneurial Research Consortium, Startup activities, Ambition, Business plans, Information services, Motivation, Entrepreneurial environment, Experience, Firm performance, Startups, Information utilization, Firm survival, Individual traits, Nascent entrepreneurs, Risk orientation

Suggested Citation

Thurik, Roy and van Gelderen, Marco and Bosma, Niels, Success and Risk Factors in the Pre-Startup Phase (2003). University of Illinois at Urbana-Champaign's Academy for Entrepreneurial Leadership Historical Research Reference in Entrepreneurship, Available at SSRN: https://ssrn.com/abstract=1513803

Roy Thurik

Montpellier Business School

France

Erasmus University Rotterdam (EUR) - Centre for Advanced Small Business Economics (CASBEC) ( email )

3000 DR Rotterdam
Netherlands
+31 10 408 2232 (Phone)
+31 10 408 9146 (Fax)

HOME PAGE: http://www.thurik.com

Erasmus Research Institute of Management (ERIM) ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands

EIM Netherlands - Business and Policy Research

Postbus 7001
2701 AA Zoetermeer
Netherlands
+31 79 341 3634 (Phone)
+31 79 331 3742 (Fax)

Tinbergen Institute ( email )

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands

Marco Van Gelderen

VU University Amsterdam ( email )

De Boelelaan 1105
Amsterdam, ND North Holland 1081 HV
Netherlands

Niels Bosma

affiliation not provided to SSRN

Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
719
PlumX Metrics