UNU-WIDER When to Start a New Firm?: Modelling the Timing of Novice and Serial Entrepreneurs
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When to Start a New Firm?: Modelling the Timing of Novice and Serial Entrepreneurs
The success of new start-up firms often depends on timing. It is valuable for the potential entrepreneur to wait for the right moment before starting a new firm. In this paper we provide a theoretical model to determine the optimal time for starting a new firm. We integrate insights from the real option theory with the theory on entrepreneurial market entry. An important and novel feature of our model is that it allows the start-up timing decisions of novice and serial entrepreneurs to be distinguished.
- Publisher:
- UNU-WIDER
- Series:
- WIDER Research Paper
- Volume:
- 2009/39
- Title:
- When to Start a New Firm?: Modelling the Timing of Novice and Serial Entrepreneurs
- Authors:
- Thomas Gries and Wim Naudé
- Publication date:
- June 2009
- ISSN Web:
- 1810-2611
- ISBN 13 Web:
- 9789292302108
- Copyright holder:
- © UNU-WIDER
- Copyright year:
- 2009
- Keywords:
- entrepreneurship, serial entrepreneurship, start-ups, real options, stochastic optimal control
- JEL:
- D92, D81, L26, M3
- Project:
- Promoting Entrepreneurial Capacity
- Sponsor:
- UNU-WIDER gratefully acknowledges the financial contributions to the project by the Finnish Ministry for Foreign Affairs, and the financial contributions to the research programme by the governments of Denmark (Royal Ministry of Foreign Affairs), Finland (Finnish Ministry for Foreign Affairs), Norway (Royal Ministry of Foreign Affairs), Sweden (Swedish International Development Cooperation Agency—Sida) and the United Kingdom (Department for International Development).
- Format:
- online