Post-start up factors Flashcards
Definition of post-start up factors
the strategies of the business
identify the 5 post-start up factors (WIFES)
Workforce training, Innovation, Formal planning Entrepreneurial skills, Sources of finance
Which of these have a significant relationship to growth?
None
Benefits of formal planning?
Can help win finance, gives strategic view of business, helps predict future challenges, helps decisions to be made faster
Negatives of formal planning
Write plan or pursue opportunity?, High uncertainty so little point, lack of flexibility to environment
Evidence in support of workforce training
Colombo and Stanca (2014), Conti (2005), Barrett and O’Connell (2001)
What did Davila et al (2003) find?
Venture capitalists support growth
Negatives against entrepreneurial skills
starting a business is different to running one, most businesses turn into incorporated ones as they grow (less emphasis on entrepreneur), unclear evidence as well
How can innovation improve growth?
Improves/ adds USP to a business
Who found that patenting improves growth?
(Helmers and Rogers, 2011)
Negative of innovation
difficult to measure
What did Brinckmann et al (2010) find?
Business planning increases performance
Impact is lower in new firms than established ones
What did Honig and Karlsson (2004) find?
Plans didn’t improve survival nor profitability
