Growth Momentum in the Early Stages of Small Business Start-Ups

Rolland LeBrasseur · Louis R. Zanibbi · Terrence J. Zinger

101 citations0/0 files storedInternational Small Business Journal Researching Entrepreneurship

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Entrepreneurship Studies and Influences Business Strategies and Innovation Firm Innovation and Growth

Abstract

This article utilizes an empirical study of 145 new venture start-ups to explore a model of growth momentum as measured by sales. Of primary interest are the relationships among pre-startup activities, intended and actual business expansion activities, and early stage performance. Results indicated that the sales level achieved in the second year had a positive correlation with (i) the breadth of pre-startup activities, and (ii) the range of expansion activities. Business performance had a negative correlation with the firm's relative dependence on the technical skills of the owner-manager. In addition, the study revealed a consistent gap between owner-managers' expansion intentions and actual expansion.

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References

1991The theory of planned behavior 1980Understanding Attitudes and Predicting Social Behavior 1996Clarifying the Entrepreneurial Orientation Construct and Linking It To Performance 2001Efficacy of the Theory of Planned Behaviour: A meta‐analytic review 2000Competing models of entrepreneurial intentions 1988Implementing Entrepreneurial Ideas: The Case for Intention 1989Evolution and Revolution as Organizations Grow 2002The Five Stages of Small Business Growth

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