Business Takeover or New Venture? Individual and Environmental Determinants from a Cross‐Country Study

23 Pages Posted: 11 Sep 2013

See all articles by Joern Block

Joern Block

Technische Universität München (TUM)

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

Peter van der Zwan

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE)

Sascha G. Walter

Lancaster University - Management School

Date Written: September 2013

Abstract

Whereas the determinants of entrepreneurial choice have been thoroughly analyzed in the literature, little is known about the preferred mode of entry into entrepreneurship, such as taking over an existing business or starting a new venture. Using a large international data set, this study reports considerable differences in takeover preferences across 33 countries. Hierarchical (multilevel) regressions are performed to explore individual‐level and country‐level determinants of the preferred mode of entry. At the individual level, a person's human capital, risk attitude, and inventiveness influence the preference for starting a new venture versus taking over an existing business. At the country level, the culture‐inherent level of risk tolerance, the country's level of innovation output, and the administrative difficulty of starting a new business are found to explain the between‐country variation in the preferred mode of entry. Implications of our findings for research and practice are also discussed.

Suggested Citation

Block, Joern and Thurik, Roy and van der Zwan, Peter and Walter, Sascha G., Business Takeover or New Venture? Individual and Environmental Determinants from a Cross‐Country Study (September 2013). Entrepreneurship Theory and Practice, Vol. 37, Issue 5, pp. 1099-1121, 2013. Available at SSRN: https://ssrn.com/abstract=2323929 or http://dx.doi.org/10.1111/j.1540-6520.2012.00521.x

Joern Block (Contact Author)

Technische Universität München (TUM) ( email )

Arcisstrasse 21
Munich, DE 80333
Germany

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

Peter Van der Zwan

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE) ( email )

P.O. Box 1738
3000 DR Rotterdam, NL 3062 PA
Netherlands

Sascha G. Walter

Lancaster University - Management School ( email )

Bailrigg
Lancaster, LA1 4YX
United Kingdom

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