Authors: Tatsuyoshi Masuda
Addresses: Department of Economics, Hokusei Gakuen University, 2-3-1, Oyachi Nishi Atsubetu ku, Sapporo 004-0042, Japan
Abstract: We divide the 941 new Japanese entrepreneurs into |novice founders| and |re-starters| in business, and compare the effects of their comparative advantages on economic performance. When observing the actual sales and the liquidity constraints at start-up, re-starters do not always suffer a disadvantage in Japanese business society. Good performance depends on the start-up industry. In this point, re-starters have entirely advantage over novice founders. For the managerial ability to recruit talented employees, successful re-starters and novice founders recruit the employees from |previous coworkers| and from |applicants to the want ads|, respectively. As for the managerial ability to raise the morale of employee, successful re-starters introduce the |merit-based pay system|, and novice founders encourage the |acquisition of any qualifications|. Public support agencies do not exert a positive effect on both entrepreneurs| sales. Further research is needed to examine what types of support programme make new entrepreneurs successful.
Keywords: novice founders; re-starters; entrepreneurs; comparative advantage; economic performance; sales; liquidity constraints; business start-ups; entrepreneurship; company performance; recruitment; co-workers; support agencies; stigmas; business failures; Japan; job applicants; wanted ads; former employees; advertisements; employee morale; merit-based pay systems; qualifications; globalisation.
International Journal of Business and Globalisation, 2010 Vol.5 No.3, pp.304 - 327
Available online: 01 Sep 2010 *Full-text access for editors Access for subscribers Purchase this article Comment on this article