Title: What determines the growth ambition of Dutch early-stage entrepreneurs?

Authors: Ingrid Verheul, Linda Van Mil

Addresses: Rotterdam School of Management, Erasmus University Rotterdam, Centre for Entrepreneurship and New Business Venturing, Room T11-41, P.O. Box 1738, 3000 DR Rotterdam, The Netherlands; EIM Business and Policy Research (Panteia), P.O. Box 7001, 2701 AA Zoetermeer, The Netherlands. ' Rotterdam School of Management, Erasmus University Rotterdam, Centre for Entrepreneurship and New Business Venturing, Room T11-41, P.O. Box 1738, 3000 DR Rotterdam, The Netherlands; EIM Business and Policy Research (Panteia), P.O. Box 7001, 2701 AA Zoetermeer, The Netherlands

Abstract: This paper investigates the determinants of the ambition to grow among Dutch early-stage entrepreneurs. We use GEM adult population survey data for The Netherlands. Merging cross-sectional data of the years 2002-2007 leads to a sample of 409 nascent entrepreneurs and 336 young business owners. Growth ambition is measured by asking respondents which statement fits him or her best: 1) I want my company to be as large as possible; 2) I want a size I can manage myself or with a few key employees. We find that nascent entrepreneurs and young business owners are equally likely to strive after growth. For nascent entrepreneurs fear of failure and entrepreneurial self-efficacy are important factors explaining growth ambition. Starting a business because of perceiving and exploiting a business opportunity (as opposed to necessity entrepreneurship) is an important driver of growth ambition for all early-stage entrepreneurs, but in particular for nascents.

Keywords: growth ambition; nascent entrepreneurs; young business; Netherlands; Holland; early-stage entrepreneurs; population surveys; Global Entrepreneurship Monitor; GEM; cross-sectional data; business owners; company size; key employees; failure; self-efficacy; business opportunities; necessity entrepreneurship; nascents; entrepreneurial venturing; business ventures; entrepreneurialism.

DOI: 10.1504/IJEV.2011.039340

International Journal of Entrepreneurial Venturing, 2011 Vol.3 No.2, pp.183 - 207

Received: 14 Sep 2009
Accepted: 18 Aug 2010
Published online: 22 Oct 2014 *

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