NEW FIRM GESTATION - CONCEPTION, BIRTH, AND IMPLICATIONS FOR RESEARCH

There is considerable variation in new firm gestation processes. All possible sequences of four major gestation events (principal's commitment, financial support, hiring, and sales) are present and the duration of the gestation "window" varies from one month to 10 years. Hazard rates (annual probability of "death" are similar when any event associated with an external commitment (financial support, hiring, or sales) is treated as the "birthdate." The most common first event is principal's commitment, a strong candidate for the "conception date."