Business experience and start-up size: buying more lottery tickets next time around?

Coad, Alex, Frankish, Julian S, Nightingale, Paul and Roberts, Richard G (2014) Business experience and start-up size: buying more lottery tickets next time around? Small Business Economics. ISSN 0921-898X

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Abstract

This paper explores the determinants of start-up size by focusing on a cohort of 6247 businesses that started trading in 2004, using a unique dataset on customer records at Barclays Bank. Quantile regressions show that prior business experience is significantly related with start-up size, as are a number of other variables such as age, education and bank account activity. Quantile treatment effects (QTE) estimates show similar results, with the effect of business experience on (log) start-up size being roughly constant across the quantiles. Prior personal business experience leads to an increase in expected start-up size of about 50%. Instrumental variable QTE estimates are even higher, although there are concerns about the validity of the instrument.

Item Type: Article
Additional Information: Online first March 2014
Keywords: Start-up size, entrepreneurship, business experience, learning, quantile treatment effects
Schools and Departments: School of Business, Management and Economics > SPRU - Science Policy Research Unit
Subjects: H Social Sciences > HF Commerce > HF5001 Business
Depositing User: Catrina Hey
Date Deposited: 25 Mar 2014 10:27
Last Modified: 07 Mar 2017 04:06
URI: http://sro.sussex.ac.uk/id/eprint/47883

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