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, 43 (3). pp. 529-547. ISSN 0921-898X

[img]
Preview
PDF - Accepted Version
Download (764kB) | Preview
[img] PDF (For REF only) - Published Version
Restricted to SRO admin only

Download (433kB)

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
Keywords: Start-up size, entrepreneurship, business experience, learning, quantile treatment effects
Schools and Departments: University of Sussex Business School > 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: 04 Mar 2021 16:15
URI: http://sro.sussex.ac.uk/id/eprint/47883

View download statistics for this item

📧 Request an update