By Sam van de Schootbrugge 10-02-2021
In: deep-dives | Economic Growth Equities

Successful Start-Ups Build Strong Founding Teams

(4 min read)
Resize text:


Start-up success hinges on many factors, but most would agree that the skills and experience of the founder and initial founding team are key. But less clear is whether these core individuals remain pivotal to the business as it grows. A new NBER working paper explores how founding teams impact the post-entry dynamics of start-ups. They find:

Start-ups launched by better skilled and more experienced founding teams produce superior firm performance in survival, employment, revenue and labour productivity.
Losing founding members has negative and persistent implications for a start-up’s success, especially in teams with fewer than five members.
A founder is more important to the long-term success of a business than early joiners, but losing an early joiner still has a significant detrimental impact.

TO READ THIS DEEP DIVE
SUBSCRIBE TO MACRO HIVE PRIME

£39/month thereafter

For access to our Slack Chat Room, where we discuss all things markets with our researchers and subscribers

START YOUR FREE TRIAL


MOST READ

Homebuilders Are in A Sweet Spot (5 min read)

By John Tierney | Jun 03, 2021
The latest housing data was a source of both relief and worry. The relief is because slowing home sales perhaps indicate the US is...

2H Outlook: The Pause That Refreshes (10 min read)

By Jay Pelosky | Jun 01, 2021
As we approach midyear, Covid Speed’s breakneck pace seems to have slowed. Cross-asset markets have paused, with stable stocks, bonds...

Be Careful, Inflation Expectations Are Unanchored! (6 min read)

By Sam van de Schootbrugge | Jun 02, 2021
The Covid-19 crisis triggered a sharp reversal of capital flows to Emerging Market Economies (EMEs). Also known as a sudden stop...

PREMIUM CONTENT

Precious Metals Poised for a Historic Rally (5 min read)

By John Butler | May 25, 2021
Summary Multiple fundamental factors are coming together…

US