Resource endowment and opportunity cost effects along the stages of entrepreneurship

Tomasz Mickiewicz, Frederick Nyakudya*, Nicholas Theodorakopoulos, Mark Hart

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review


In this paper, the start-up process is split conceptually into four stages: considering entrepreneurship, intending to start a new business in the next 3 years, nascent entrepreneurship and owning-managing a newly established business. We investigate the determinants of all of these jointly, using a multinomial logit model; it allows for the effects of resources and capabilities to vary across these stages. We employ the Global Entrepreneurship Monitor database for the years 2006–2009, containing 8269 usable observations from respondents drawn from the Lower Layer Super Output Areas in the East Midlands (UK) so that individual observations are linked to space. Our results show that the role of education, experience, and availability of ‘entrepreneurial capital’ in the local neighbourhood varies along the different stages of the entrepreneurial process. In the early stages, the negative (opportunity cost) effect of resources endowment dominates, yet it tends to reverse in the advanced stages, where the positive effect of resources becomes stronger.
Original languageEnglish
Pages (from-to)953–976
JournalSmall Business Economics
Issue number4
Early online date13 Oct 2016
Publication statusPublished - 13 Apr 2017

Bibliographical note

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  • entrepreneurship
  • GEM
  • sStages of entrepreneurship
  • resources
  • opportunity cost
  • entrepreneurial capital


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