Entrepreneur opportunity costs and intended venture growth

This study investigates how entrepreneur opportunity costs influence the intended future size of new ventures. In particular, using a survey of nascent entrepreneurs in the process of starting a venture, this paper examines how intended future sales revenue is influenced by entrepreneur current household income, education, and managerial experience. Consistent with opportunity cost and human capital arguments, it is found that individuals with higher current household income and greater supervisory experience have higher levels of intended firm size in 5 years time. While this study finds that entrepreneur stated preferences for growth also influence intended future sales of the venture, the association between nascent entrepreneur opportunity costs and venture scale is complementary to these stated preferences.