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The take-up and variation of advice for new firm founders in different local contexts

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Mole, Kevin and Capelleras, Joan-Lluis (2018) The take-up and variation of advice for new firm founders in different local contexts. Environment and Planning C : Politics and Space, 36 (1). pp. 3-27. doi:10.1177/2399654417691514

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Official URL: https://doi.org/10.1177/2399654417691514

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Abstract

Although business advice has been linked to entrepreneurial outcomes, it is subject to information asymmetries and market failure. We argue that the knowledge concerning from whom to take advice before starting a new firm is more easily accessed in areas with high start-up rates which therefore ameliorates market failure. The study is based on surveys of 599 new firm founders in England and 381 new firm founders in Catalonia. A series of probit and heteroskedastic probit models are employed to investigate not only the probability of taking advice but also the variance in that probability, which reflects uncertainty. Supporting our view, the findings show that the taking of advice in the places with higher start-up rates exhibit less variation compared to other localities. We also find differing effects of place on the take up and variation of private sector and public sector advice. Implications from the findings are discussed

Item Type: Journal Article
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions: Faculty of Social Sciences > Warwick Business School > Entrepreneurship, Innovation & Management
Faculty of Social Sciences > Warwick Business School
Library of Congress Subject Headings (LCSH): New business enterprises -- England, New business enterprises -- Catalonia (Spain)
Journal or Publication Title: Environment and Planning C : Politics and Space
Publisher: Sage
ISSN: 2399-6544
Official Date: February 2018
Dates:
DateEvent
February 2018Published
10 February 2017Available
10 January 2017Accepted
Volume: 36
Number: 1
Page Range: pp. 3-27
DOI: 10.1177/2399654417691514
Status: Peer Reviewed
Publication Status: Published
Access rights to Published version: Restricted or Subscription Access
Funder: Leverhulme Trust (LT), Universitat autònoma de Barcelona, España Ministerio de Ciencia y Tecnología
Grant number: F/00215/E (Leverhulme Trust (LT)), ECO2013-46954-C3- 2-R (España Ministerio de Ciencia y Tecnología)

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