New Producer Services Businesses: Are They Any Different From New Manufacturing Ventures?

Abstract

Based upon the presumed importance of manufacturing firms in both wealth and job generation, the majority of research in the field of new ventures over the past 20 years has focused upon this sector. However, with the down-sizing of many large organisations and the growth of spin-outs and management buy-outs, many of which continue to serve their former owners, attention has shifted to a questioning of the role of ‘producer services'. This article adds to this debate by posing one broad research question: Are there any significant differences in the characteristics of new business founders and new business performance and growth between ‘manufacturing’ and ‘producer services' business? Overall, the paper concludes that there are many more similarities than there are differences. However, the final discriminant model also confirms many of the anticipated trends.

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