Financial constraints and firm post-entry performance

Article Abstract:

Companies generate funds internally and externally. Obtaining a loan from a bank or any other lending institution is one way for firms to generate money. In the case of new firms, banks are suspicious to lend them money because they have no track record to speak of. This puts new firms at a disadvantage when it comes to accessing possible sources of capital. This shows that firm size and growth are important determinants that have to considered by future researchers on the subject of post-entry performance of new firms.

Evaluation, Bank capital

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Selection versus evolutionary adaptation: learning and post-entry performance

Article Abstract:

Previous studies have focused more on the early stages of a new firm's entry into a market. The few studies on the short- and long-term consequences of entry have shown that firms learn to survive via selection, through which the more inefficient are weeded out, and evolution, through which they learn skills for survival as they go on. The maturation process for firms that enter a market by constructing new plants is studied.

New business enterprises, Startups

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