Consolidation period in new ventures: how long does it take to establish a start-up?. (1st January 2013)

• Record Type: Journal Article
• Authors: Lambertz, Stefanie; Schulte, Reinhard
• Is Part Of: International journal of entrepreneurial venturing. Volume 5:Number 4(2013)
• Page Start: 369
• Page End: 390
• Publication Date: 2013-01-01
• Subjects: entrepreneurial process -- growth phase -- consolidation period -- organisational life cycle -- new venture development -- stage models -- life cycle models -- firm size -- small firms -- new ventures -- established start-ups -- entrepreneurship -- start-ups -- small and medium-sized enterprises -- SMEs -- panel data; Entrepreneurship -- Periodicals; Business enterprises -- Periodicals; 658.42105
• Languages: English
• ISSNs: 1742-5360

Abstract

Starting up a new venture is seen in the recent literature on the subject as a process in which the entrepreneur must find, evaluate, develop and finally implement an opportunity. The process is finally concluded when the new venture has consolidated its position on the market. The present study assumes that a start-up is established on the market when its organisational structure has stabilised. From this stage of consolidation the firm has become a stable, functional and operating venture and its firm size has matured. To measure the length of the development until the stage of consolidation, the study analyses the development of the number of employees over time. The findings indicate that start-ups have managed to establish themselves on the market on average within five years. This consolidation period can vary slightly according to gender, business field and some other factors analysed in this study.