Abstract
New ventures are an important part of a healthy economy (Birch [1979]; Birley [1986]; Cooper Willard, and Woo [1986]). They are vital to the U.S. economy, with most of the net new jobs created by new ventures (Birch [1979]; Timmons [1994]). The formation of new ventures in the United States is increasing (U.S. Small Business Administration [1986]). However, the failure rate of new ventures is substantial, with the majority of the ventures failing prior to their third year (Ibrahim and Goodwin [1986]).
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