Email the details of this paper to a friend

This paper provides a detailed insight into the determinants of new born firms’ initial size. As survival prospects of young firms are directly linked to a firm’s initial size a better understanding of the factors influencing start-up size is crucial. We find that in addition to industry effects initial size is considerably influenced by the generic and specific human capital components of the firm’s founder(s). Furthermore, firms with entry strategies which are based on the disclosure of new opportunities in a market exhibit a higher initial size while start-ups established from necessity appear to start at a smaller scale.