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Business experience and start-up size: buying more lottery tickets next time around?
journal contributionposted 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.
- Accepted version
JournalSmall Business Economics
Department affiliated with
- SPRU - Science Policy Research Unit Publications
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