Do entrepreneurial goals matter? Resource allocation in new managed firms

This paper focuses on how entrepreneurial goals affect the resource allocation of new firm owners. It connects research in psychology and management that examines the core motivations of entrepreneurs with research in economics that models the behavior of owner-managers as utility-maximizing rather...

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Bibliographic Details
Main Author: Dunkelberg, William
Format: Article
Language:English
Published: 2013
Subjects:
Resource Allocation
Owner Goals
New Firms
Small Business
Entrepreneurship
LEADER 01525nab a22001817a 4500
008 160615b2013 xxu||||| |||| 00| 0 eng d
100 |a Dunkelberg, William 
245 |a Do entrepreneurial goals matter? Resource allocation in new managed firms  |c Dunkelberg, William. 
260 |c 2013 
300 |a 224-240 
520 |a This paper focuses on how entrepreneurial goals affect the resource allocation of new firm owners. It connects research in psychology and management that examines the core motivations of entrepreneurs with research in economics that models the behavior of owner-managers as utility-maximizing rather than profit-maximizing. We hypothesize that new owners with nonmonetary goals allocate their resources differently than do owners with monetary goals and that the differences are meaningful in size. To test these hypotheses, we estimate firm level equations based on economic theories of input demand that show how input quantities depend on owner goals. Data come from a national survey of new U.S. business owners. We find owner goals have both a statistically and substantively significant effect on resource allocation for new firms. Owners with nonmonetary goals put in more of their own and family hours rather than hiring outside employees. Implications for research and policy are discussed. 
650 |a Resource Allocation 
650 |a Owner Goals 
650 |a New Firms 
650 |a Small Business 
650 |a Entrepreneurship 
773 |a Journal of Business Venturing  |d March 
999 |c 42204  |d 42204 

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