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.

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.

Publication DOI: https://doi.org/10.1007/s11187-014-9568-2
Divisions: Aston Business School
Full Text Link: https://www.sus ... 203.pdf&site=25
Related URLs: http://link.spr ... 1187-014-9568-2 (Publisher URL)
Published Date: 2014-10-01
Authors: Coad, Alex
Frankish, Julian S.
Nightingale, Paul
Roberts, Richard G. ( 0000-0002-7641-1290)

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