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.
Original language | English |
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Journal | Small Business Economics |
Volume | 43 |
Issue number | 3 |
Pages (from-to) | 529-547 |
Number of pages | 19 |
ISSN | 0921-898X |
DOIs | |
Publication status | Published - 2014 |
Keywords
- Business experience
- Entrepreneurship
- Learning
- Quantile treatment effects
- Start-up size