Entrepreneurial entry thresholds

Brian T. McCann and Timothy B. Folta

Journal of Economic Behavior & Organization, 2012, vol. 84, issue 3, 782-800

Abstract: Much of prior research recognizes that entry into entrepreneurship involves a comparison of expected economic returns in a venture to some threshold level of acceptable performance. Despite this recognition, theory commonly focuses on drivers of economic returns at the exclusion of threshold drivers. Moreover, typical empirical investigations of entry provide little insight into whether determinants influence expected returns, the required threshold, or both. Drawing from the Panel Study of Entrepreneurial Dynamics, we apply an empirical approach new to the entrepreneurial entry literature to investigate the drivers of both expected performance and the unobserved threshold, providing greater insight into the specific causal role of entry determinants.

Keywords: Thresholds; Nascent entrepreneurs; Expectations; Entry (search for similar items in EconPapers)
JEL-codes: C34 J24 L26 M13 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (12)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:84:y:2012:i:3:p:782-800

DOI: 10.1016/j.jebo.2012.09.020

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