Abstract
This article follows the progress of a large and nationally representative sample of American nascent entrepreneurs - identified in the initial interview of the Panel Study of Entrepreneurial Dynamics (PSED) - over the next 12 months of the panel. We develop a novel theoretical framework based on maximisation of expected utility and the value of waiting, and estimate it to reveal which personal and economic characteristics are associated with venture start-up - and which are associated with remaining a nascent entrepreneur, or giving up entirely. The value of waiting turns out to play a key role in helping us understand what happens to nascent entrepreneurs. We discuss the implications of our results for entrepreneurs, lenders, business start-up support agencies and policy-makers.
Original language | English |
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Pages (from-to) | 81-101 |
Journal | Small Business Economics |
Volume | 27 |
Issue number | 1 |
DOIs | |
Publication status | Published - Aug 2006 |
Keywords
- nascent entrepreneurship
- new venture creation
- occupational choice
- self-employment
- business
- survival
- ventures
- firms
- information
- dynamics
- success
- Canada
- investment