Title
Business experience and start-up size: Buying more lottery tickets next time around?
Date Issued
06 March 2014
Access level
open access
Resource Type
journal article
Author(s)
Frankish J.S.
Nightingale P.
Roberts R.G.
University of Sussex
Publisher(s)
Kluwer Academic Publishers
Abstract
This paper explores the determinants of start-up size by focusing on a cohort of 6,247 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.
Start page
529
End page
547
Volume
43
Issue
3
Language
English
OCDE Knowledge area
Economía, Negocios
Scopus EID
2-s2.0-84894652089
Source
Small Business Economics
ISSN of the container
0921898X
DOI of the container
10.1007/s11187-014-9568-2
Source funding
Engineering and Physical Sciences Research Council
Economic and Social Research Council
Sources of information: Directorio de Producción Científica Scopus