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International Small Business Journal
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Growth Momentum in the Early Stages of Small Business Start-Ups

Rolland LeBrasseur

Laurentian University, Canada rlebrasseur{at}laurentian.ca

Louis Zanibbi

Laurentian University, Canada

Terrence J. Zinger

Laurentian University, Canada

This article utilizes an empirical study of 145 new venture start-ups to explore a model of growth momentum as measured by sales. Of primary interest are the relationships among pre-startup activities, intended and actual business expansion activities, and early stage performance. Results indicated that the sales level achieved in the second year had a positive correlation with (i) the breadth of pre-startup activities, and (ii) the range of expansion activities. Business performance had a negative correlation with the firm's relative dependence on the technical skills of the owner-manager. In addition, the study revealed a consistent gap between owner-managers' expansion intentions and actual expansion.

Key Words: expansion activities • growth intentions • pre-startup activities • startups

International Small Business Journal, Vol. 21, No. 3, 315-330 (2003)
DOI: 10.1177/02662426030213004
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