Abstract
This paper empirically investigates aspects of risk management in young small enterprises effort to survive and grow. We use a new dataset on several thousands small businesses in their "formative age" (2-8 years old) in 10 European countries and 18 sectors. Firms across all types of sectors use internal risk mitigation strategies to manage technology risk and operational risk. Financial risk is managed by tapping formal and informal networks. Market risk appears less amenable to internal management action. Formal network participation (strategic alliances) is a strategy cutting across all kinds of risk with the exception of operational risk. Firms in knowledge-intensive sectors (high-tech manufacturing and KIBS) engage in risk management activities more extensively. Firms led by more educated entrepreneurs and/or operating in demanding volatile markets tend to network more and to use internal risk mitigation strategies more extensively.
| Original language | English |
|---|---|
| Pages (from-to) | 454-465 |
| Number of pages | 12 |
| Journal | Technovation |
| Volume | 34 |
| Issue number | 8 |
| DOIs | |
| Publication status | Published - 2014 Jan 1 |
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ASJC Scopus subject areas
- Engineering(all)
- Management of Technology and Innovation
Cite this
Managing risk in the formative years : Evidence from young enterprises in Europe. / Kim, Young Jun; Vonortas, Nicholas S.
In: Technovation, Vol. 34, No. 8, 01.01.2014, p. 454-465.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - Managing risk in the formative years
T2 - Evidence from young enterprises in Europe
AU - Kim, Young Jun
AU - Vonortas, Nicholas S.
PY - 2014/1/1
Y1 - 2014/1/1
N2 - This paper empirically investigates aspects of risk management in young small enterprises effort to survive and grow. We use a new dataset on several thousands small businesses in their "formative age" (2-8 years old) in 10 European countries and 18 sectors. Firms across all types of sectors use internal risk mitigation strategies to manage technology risk and operational risk. Financial risk is managed by tapping formal and informal networks. Market risk appears less amenable to internal management action. Formal network participation (strategic alliances) is a strategy cutting across all kinds of risk with the exception of operational risk. Firms in knowledge-intensive sectors (high-tech manufacturing and KIBS) engage in risk management activities more extensively. Firms led by more educated entrepreneurs and/or operating in demanding volatile markets tend to network more and to use internal risk mitigation strategies more extensively.
AB - This paper empirically investigates aspects of risk management in young small enterprises effort to survive and grow. We use a new dataset on several thousands small businesses in their "formative age" (2-8 years old) in 10 European countries and 18 sectors. Firms across all types of sectors use internal risk mitigation strategies to manage technology risk and operational risk. Financial risk is managed by tapping formal and informal networks. Market risk appears less amenable to internal management action. Formal network participation (strategic alliances) is a strategy cutting across all kinds of risk with the exception of operational risk. Firms in knowledge-intensive sectors (high-tech manufacturing and KIBS) engage in risk management activities more extensively. Firms led by more educated entrepreneurs and/or operating in demanding volatile markets tend to network more and to use internal risk mitigation strategies more extensively.
KW - Risk
KW - Risk management
KW - Small firms
KW - SMEs
UR - http://www.scopus.com/inward/record.url?scp=84902456572&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84902456572&partnerID=8YFLogxK
U2 - 10.1016/j.technovation.2014.05.004
DO - 10.1016/j.technovation.2014.05.004
M3 - Article
AN - SCOPUS:84902456572
VL - 34
SP - 454
EP - 465
JO - Technovation
JF - Technovation
SN - 0166-4972
IS - 8
ER -