Complexity dynamics of nascent entrepreneurship

Abstract

We use theory and methods from complexity science to examine dynamic patterns among activities undertaken by nascent entrepreneurs in the Panel Study of Entrepreneurial Dynamics. We develop hypotheses predicting that certain dynamic patterns in start-up activities will lead to the emergence of new firms when: (1) the rate of start-up activities is high, (2) start-up activities are spread out over time, and (3) start-up activities are concentrated later rather than earlier over time. All three hypotheses are confirmed. The paper concludes with some suggestions for the role of complexity science for furthering insights into the process of organization creation.