TAKING THE FIRST HURDLE IN NEW FIRM FORMATION. THE EFFECTS OF INDUSTRY-SPECIFIC SKILLS AND SUPPORT ON SURVIVAL DURING THE FOUNDING PROCESS

Successful firms are important elements of sound economic development. In order to understand the factors that influence firm success many studies have addressed this issue. Success factors in the nascent phase of firm formation are however still unclear. Even as early as in the founding stage, however, firms are discontinued and the processes in this phase hold important information about success factors. This study addresses the founding success of several founding types, including spin-outs and spin-offs. It finds that industry-specific experience of the founders is a crucial success factor. Direct support from a parent firm does however not always enhance survival. Independence rather than support appears to be important for starting a successful firm.