Business experience and start-up size: Buying more lottery tickets next time around?

Alex Coad*, Julian S. Frankish, Paul Nightingale, Richard G. Roberts

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

11 Citations (Scopus)


This paper explores the determinants of start-up size by focusing on a cohort of 6,247 businesses that started trading in 2004, using a unique dataset on customer records at Barclays Bank. Quantile regressions show that prior business experience is significantly related with start-up size, as are a number of other variables such as age, education and bank account activity. Quantile treatment effects (QTE) estimates show similar results, with the effect of business experience on (log) start-up size being roughly constant across the quantiles. Prior personal business experience leads to an increase in expected start-up size of about 50 %. Instrumental variable QTE estimates are even higher, although there are concerns about the validity of the instrument.

Original languageEnglish
Pages (from-to)529-547
Number of pages19
JournalSmall Business Economics
Issue number3
Publication statusPublished - 2014 Mar 6
Externally publishedYes


  • Business experience
  • Entrepreneurship
  • Learning
  • Quantile treatment effects
  • Start-up size

ASJC Scopus subject areas

  • Business, Management and Accounting(all)
  • Economics and Econometrics


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