Abstract
This paper examines entrepreneurial influences on the size of the new firm. Theory and previous empirical research indicate that the entrepreneurial attributes most likely to influence the characteristics and performance of new firms are motivation, workskills and information. The results of a regression analysis confirm these hypotheses when turnover and total assets are the dependent variables but are less conclusive when employment is the dependent variable. Possibly the most interesting finding is that the entrepreneurs who create the most jobs are those who are highly motivated, have managerial skills and whose firms are in the manufacturing sector.
Article PDF
Similar content being viewed by others
Avoid common mistakes on your manuscript.
Bibliography
Barkham, R. J., 1987, ‘Regional Variations in New Business Size, Financial Structure and Founder Characteristics: Survey Results’,Discussion Paper in Urban and Regional Economics (Series C, No. 32), Department of Economics, University of Reading August.
Barkham, R. J., 1989, ‘Entrepreneurship, New Forms and Regional Development’, PhD Thesis (unpublished, Department of Economics, University of Reading.
Bolton Report, 1971,Small Firms, Report of the Committee of Inquiry on Small Firms (Chairman J. E. Bolton), HMSO, London, November Cmnd 4811.
Casson, M. C., 1982,The Entrepreneur — An Economic Theory, Oxford: Martin Robertson and Co Ltd.
Chell E., 1986, ‘The Entrepreneurial Personality: A Review and Some Theoretical Developments’, in J. Curran, J. Stanworth and D. Watkins (eds.),The Survival of the Small Firm Vol 1: The Economics of Survival, Aldershot, Hants: Gower.
Collins, O. F., D. G. Moore and D. B. Unwalla, 1964,The Enterprising Man, Michigan State University Business Studies (Bureau of Business and Economic Research) Graduate School of Business Administration, MSU, East Lansing.
Cooper, A. C., 1971, ‘Spin-Offs and Technical Entrepreneurship’,IEEE Transactions on Engineering Management EM-18(1), 2–6.
Cross, M., 1981,New Firm Formation and Regional Development, Farnborough, Hants: Gower.
Fothergill, S. and G. Gudgin, 1982,Unequal Growth — Urban and Regional Employment Change in the UK, London: Heinemann Educational Books.
Gibb, A. and J. Dyson, 1984, ‘Stimulating Growth in Owner Managed Firms’, in J. Lewis, J. Stanworth and A. Gibb (eds.),Success and Failure in Small Business, Hampshire: Gower.
Gilmore, J. B., 1972, ‘An Investigation of Selected Entrepreneurial Models: Ability to Predict Successful Entrepreneurial Activity’, Unpublished Ph.D. Dissertation, University of Oklahoma, Graduate College, Norman, Oklahoma.
Leff, N. H., 1979, ‘Entrepreneurship and Economic Development; the Problem Revisited’,Journal of Economic Literature 17(1), 46–64.
Lippitt, R. and R. K. White, 1958, ‘An Experimental Study of Leadership and Group Life’,Readings in Social Psychology, New York: Holt, Rinehart and Winston.
McClelland, D. C., 1961,The Achieving Society, Princeton, New Jersey: D. Van Nostrand Company Inc.
McClelland, D. C., 1965, ‘Achievement Motivation Can be Developed’,Harvard Business Review 43(6), 6–25.
McGuire, J. W., 1976, ‘The Small Enterprise in Economics and Organisation Theory’,Journal of Contemporary Business Spring, 115–138.
Mason, C. M., 1985, ‘The Geography of ‘Successful’ Small Firms in the United Kingdom’,Environment and Planning A 17(11), 1499–1513.
Mason, C., 1989, ‘Where Are the Successful Small Businesses? A Geographical Perspective’, in P. Foley and H. Green (eds.),A Small Business Success, London: Paul Chapman Publishing Ltd. — for the Small Business Research Trust.
Mayer, K. B. and S. Goldstein, 1961, ‘The First Two Years: Problems of Small Firm Growth and Survival’,Small Business Research Series No. 2, Washington DC: Small Business Association.
Penrose, E. T., 1959,The Theory of the Growth of the Firm, Oxford: Basil Blackwell.
Perry, C., G. G. Meredith and H. J. Cunnington, 1986, ‘Relationship Between Small Business Growth and Personal Characteristics of Owner-Managers in Australia’,Journal of Small Business Management April, 76–79.
Peters, T. J. and R. H. Waterman, 1982,In Search of Excellence — Lessons From America's Best-Run Companies, New York: Warner Books.
Roberts, E. B. and H. A. Wainer, 1968, ‘New Enterprise on Route 120’,Science Journal 4(12), 78–83.
Schrage, H., 1965, ‘The R & D Entrepreneur; Profile of Business’,Harvard Business Review 43(6), 56–69.
Schultz, T. W., 1975, ‘The Value of the ability to Deal with Disequilibrium’,Journal of Economic Literature 13(3), 827–846.
Schultz, T. W., 1980, ‘Investment in Entrepreneurial Ability’,Scandinavian Journal of Economics 82, 437–448.
Storey, D. J., 1982,Entrepreneurship and the New Firm, London and Canberra: Croom Helm.
Storey, D. J., K. Keasey, R. Watson and P. Wynarczyk, 1987,The Performance of Small Firms — Profits Jobs and Failures, London, Sydney, Wolfeboro, New Hampshire: Croom Helm.
Wainer, H. A. and I. M. Rubin, 1969, ‘Motivation of Research and Development Entrepreneur’,Journal of Applied Psychology 53(3), 178–184.
Watanabe, S., 1970, ‘Entrepreneurship in Small Enterprises in Japanese Manufacturing’,International Labour Review 102(6), 105–128.
Woodruff, A. M. and T. G. Alexander, 1958,Success and Failure in Small Manufacturing. A Study of 20 Small Manufacturing Concerns, Pittsburgh: University of Pittsburgh Press.
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Barkham, R.J. Entrepreneurial characteristics and the size of the new firm: A model and an econometric test. Small Bus Econ 6, 117–125 (1994). https://doi.org/10.1007/BF01065184
Received:
Issue Date:
DOI: https://doi.org/10.1007/BF01065184