The Life Cycle of New Ventures

The Life Cycle of New Ventures

Emergence, Newness and Growth

Edited by Candida G. Brush, Lars Kolvereid, L. Øystein Widding and Roger Sørheim

The contributors to this book provide a cross-national comparison of venture emergence, newness and growth. Their chapters examine the influences of cultural, social and economic factors on venture development, compare the approaches of entrepreneurs who move from idea to emerging organization, and investigate acquisition and development of resources in growth and performance.

Introduction

Candida G. Brush, Roger Sorheim, L. Oystein Widding and Lars Kolvereid

Subjects: business and management, entrepreneurship, international business

Extract

Candida G. Brush, Roger Sørheim, L. Øystein Widding and Lars Kolvereid This book emerged from a series of research presentations held in 2007 and 2008 at the Norwegian University of Science and Technology (NTNU) and Babson College. Participants in the research presentations were from three schools, Babson College, NTNU and Bodø Graduate School of Business (Norway). All the researchers were active in entrepreneurship research, but approached the topic from a variety of disciplines including strategy, engineering, marketing, entrepreneurship, sociology, math/science and economics. The research presentations highlighted the approaches taken by entrepreneurs, challenges and factors influencing success across the life cycle of new ventures. We were intrigued by the similarities and differences between ventures in Norway and the USA and the idea for this book emerged. Our purpose is to provide a cross-national comparison (USA and Norway) across the phases of venture growth; emergence, newness and growth. While comparing the USA and Norway may at first appear an unusual pairing, a comparison of the two countries from the Global Entrepreneurship Monitor (GEM) suggests that there are some similarities. Overall, Norway has slightly more business start-up attempts than the other Scandinavian countries, but markedly lower than the USA (8.4 percent). Approximately 40 000 to 45 000 new businesses are registered in Norway each year, which corresponds to approximately 15 percent of the total business population (Spilling, 2006). However, each year an equivalent number of businesses close down. The USA reports approximately 627 200 new employer firms began operations in 2008, and...