Abstract
Entrepreneurship researchers typically assume that normal (i.e., Gaussian) distributions characterize the outcomes of interest. Our research challenges this assumption by examining a sample of 6,530 firms to uncover t h e shape of t h e distribution for two key variables in entrepreneurial firms: number of employees and revenues. Results show highly skewed power law distributions. Future researchers need to recognize the relevance of power laws and extreme outcomes and then search for the underlying generative causes.
| Original language | English |
|---|---|
| Pages (from-to) | 3-7 |
| Number of pages | 5 |
| Journal | Journal of Business Venturing Insights |
| Volume | 1 |
| Issue number | 1-2 |
| DOIs | |
| State | Published - 2014 |
ASJC Scopus Subject Areas
- Business and International Management
- Management of Technology and Innovation
Keywords
- Entrepreneurial startups
- Entrepreneurship
- Extreme outcomes
- Power laws
- Skew distributions
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