Capturing the Economic Model of the Entrepreneur: The Different Paths to Venture Profitability

Michael Morris*, April Spivack, Jeffrey Allen

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

1 Citation (Scopus)

Abstract

An economic model provides a consistent logic for earning profits within a venture. In this research, a four-component framework is developed and tested for capturing the entrepreneur's economic model. The proposed framework argues for integrating these four elements in a logical and consistent manner. Certain combinations of these elements can lead to highly successful ventures while others should result in more marginal firms. To test the framework, a cross-sectional survey of independent retail establishments was undertaken. Using cluster analysis techniques, five dominant economic models were identified among these ventures. Evidence of performance differences, depending on the type of model, was produced. Theoretical and managerial implications are drawn.

Original languageEnglish
Peer-reviewed scientific journalJournal of Small Business and Entrepreneurship
Volume22
Issue number3
Pages (from-to)285-309
Number of pages25
ISSN0827-6331
DOIs
Publication statusPublished - 01.07.2009
MoE publication typeA1 Journal article - refereed

Keywords

  • 512 Business and Management

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