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

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posted on 2023-06-08, 16:54 authored by Alex Coad, Julian S Frankish, Paul NightingalePaul Nightingale, Richard G Roberts
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.

History

Publication status

  • Published

File Version

  • Accepted version

Journal

Small Business Economics

ISSN

0921-898X

Publisher

Springer

Issue

3

Volume

43

Page range

529-547

Department affiliated with

  • SPRU - Science Policy Research Unit Publications

Full text available

  • Yes

Peer reviewed?

  • Yes

Legacy Posted Date

2014-03-25

First Open Access (FOA) Date

2015-04-01

First Compliant Deposit (FCD) Date

2014-03-25

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