Espen John Isaksen

New Venture Financing and Subsequent Business Growth in Men- and Women-Led Businesses

This study investigates the possible funding gap for women–owned compared with men–owned new businesses. With longitudinal data from new businesses in Norway, gender differences in funding perceptions and behaviors, as well as in actually obtained amounts of funding, are explored. While there are few detected gender differences with respect to funding perceptions and behavior, women obtain significantly less financial capital to develop their new businesses. Moreover, the results indicate that the lower levels of financial capital that women business founders achieve are associated with lower early business growth compared with their male counterparts.

Survival of New Firms Owned by Natives and Immigrants in Norway

This paper investigates the survival rates of businesses founded by immigrants and natives in the context of Norway, which has not yet been explored. Based on the relevant literature review, the entrepreneurs human capital and ventures start-up characteristics were expected to explain the differences between the survival rates of businesses established by immigrants and natives. Longitudinal data on 389 firms established in 2002 were analyzed. It was revealed that the survival rate was lower for businesses established by immigrants compared to those established by natives. The analysis suggests that the relatively low survival rate of businesses established by immigrants is partly explained by the perceived novelty of the products and by the fact that immigrants are more likely to locate their businesses in urban areas. Human capital differences were not found to explain immigrant/native differences in business survival rates. Based on these results, several practical implications and suggestions for future research are offered.

Growth objectives in Norwegian start-up businesses

The present survey focuses on independent baby businesses, defined as a de novo entries that are started from scratch. A total of 1,044 new businesses were identified using the Norwegian central coordinating register for business entities. The results indicate that the majority of businesses are born small to stay small. Important implications for policy makers and future research are indicated.

Growth aspirations among women entrepreneurs in high growth firms

Purpose – The purpose of this paper is to investigate the relationship between perceived desirability (attitude towards growth) and feasibility (entrepreneurial self-efficacy) of business growth and women entrepreneurs’ continued business growth aspirations. Hypotheses are derived guided by the Entrepreneurial Event Model (EEM). The authors also address the following research question: what reasons do women entrepreneurs state for wanting or not wanting continued business growth? Design/methodology/approach – The sample consists of 93 of the largest independent businesses in Norway started by women entrepreneurs in 2004, 2005 or 2006 (response rate 57.5 per cent). The hypotheses are tested using logistic regression. The authors carry out a post hoc analysis of open-ended questions, containing a qualitative analysis of the reasons for not wanting or wanting the business to grow. Findings – The results support the hypotheses. Controlling for industry, location and the women entrepreneurs’ age, perceived des...

Expectations and achievements in new firms

Purpose The purpose of this paper is to investigate the antecedents of business growth expectations and subsequent accumulated sales revenues and employment costs. Hypotheses are derived guided by the theory of planned behaviour. Design/methodology/approach The authors followed a sample of 207 incorporated businesses started in May/June 2002 over a ten-year period. The hypotheses are tested using hierarchical regression analysis. Findings The results suggest that the entrepreneurs’ need for social cohesion, subjective norm with regard to business growth and perceived self-efficacy with regard to opportunity recognition are positively and significantly associated with business growth expectations. These expectations, reported at the time of business registration, accurately predict subsequent short-term as well as long-term accumulated sales revenues and labour costs, but this is not the case for entrepreneurs with novel business ideas. Practical implications Since entrepreneurs’ attitude, subjective norm and self-efficacy are possible to change, the findings should interest policy makers and educators. Measures aimed at enhancing the antecedents of entrepreneurs’ growth expectations should be considered. The findings that growth expectations have a long-lasting effect on sales and employment stress the importance of entrepreneurs’ subjective expectations for outcomes in new businesses. Originality/value There is a lack of studies using a longitudinal design when investigating the link between initial business growth expectations and subsequent firm outcomes. This study contributes to the entrepreneurship literature in this regard by using high-quality secondary data to examine firm achievements.

NEW FIRM DEVELOPMENT: IDENTIFYING DORMANT, DROWSY AND ACTIVE FIRMS

Using a theoretical framework developed by Song et al. (2008) the present survey uses initial characteristics of the entrepreneur, the opportunity and the resources available to the firm at start-up to predict activity in surviving businesses 12 years after birth. The initial data collection took place in 2002. To measure activity, we categorise businesses based on their membership in government registers from 2002 to 2014, enabling us to distinguish between dormant, drowsy (semi dormant) and active firms. The results indicate that entrepreneurial competence and commitment to the business, the novelty and early exploitation of the opportunity, team start-up as well as the financial resources available at start-up predict activity in the business. The findings have important implications for practitioners and scholars.

Hybrid Entrepreneurs: Characteristics and Achievements

Hybrid entrepreneurs are people who start businesses whilst they have salaried jobs. About fifty percent of all new businesses are started by hybrids. Hybrid entrepreneurship is a low-risk way of testing business ideas, gaining entrepreneurial experience and developing business management skills.