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Consolidation period in new ventures: how long does it take to establish a start-up?

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  • Stefanie Lambertz
  • Reinhard Schulte

Abstract

Starting up a new venture is seen in the recent literature on the subject as a process in which the entrepreneur must find, evaluate, develop and finally implement an opportunity. The process is finally concluded when the new venture has consolidated its position on the market. The present study assumes that a start-up is established on the market when its organisational structure has stabilised. From this stage of consolidation the firm has become a stable, functional and operating venture and its firm size has matured. To measure the length of the development until the stage of consolidation, the study analyses the development of the number of employees over time. The findings indicate that start-ups have managed to establish themselves on the market on average within five years. This consolidation period can vary slightly according to gender, business field and some other factors analysed in this study.

Suggested Citation

  • Stefanie Lambertz & Reinhard Schulte, 2013. "Consolidation period in new ventures: how long does it take to establish a start-up?," International Journal of Entrepreneurial Venturing, Inderscience Enterprises Ltd, vol. 5(4), pages 369-390.
    • Handle: RePEc:ids:ijeven:v:5:y:2013:i:4:p:369-390
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    Citations

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    Cited by:

    1. Schulte, Reinhard, 2018. "New venture investing trajectories: A large scale longitudinal study," Lüneburger Beiträge zur Gründungsforschung 13, Leuphana University of Lüneburg, Department of Entrepreneurship & Start-up Management.
    2. Christian Rudeloff & Stefanie Pakura & Fabian Eggers & Thomas Niemand, 2022. "It takes two to tango: the interplay between decision logics, communication strategies and social media engagement in start-ups," Review of Managerial Science, Springer, vol. 16(3), pages 681-712, April.
    3. Habermann, Harald, 2017. "Business takeovers and firm growth: Empirical evidence from a German panel," Working Papers 01/17, Institut für Mittelstandsforschung (IfM) Bonn.
    4. Pakura, Stefanie, 2015. "Unternehmerische Motivation und Wiedergründungsbereitschaft: Eine empirische Untersuchung deutscher Unternehmensneugründungen in der Frühentwicklungsphase," Lüneburger Beiträge zur Gründungsforschung 10, Leuphana University of Lüneburg, Department of Entrepreneurship & Start-up Management.

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