Consequences of an Entrepreneurial Development Program: Tracking a Cumulative Panel 1988-93

Abstract

Outcomes for 112 proposed start-ups and expansions involving 149 participants in the University of Minnesota-Duluth (UMD) Entrepreneurial Development Program (EDP) are examined. The panel of businesses included represents 91 planned start-ups and 21 planned expansions. The first group of participants joined the EDP in 1988 and the last group completed initial training in 1993. The EDP panel is not a statistical panel, it represents the result of a process involving recruitment, selection, training and follow-up over a 6 year period. Thus, the panel allows a view of the entrepreneurial process through time as individuals and teams attempt to start or expand a business, aided by a systematic process provided by professionals experienced in business development. Of the 51 businesses and expansions that were implemented as a result of the program, 38 or 75% are still in operation in 1994. The rate is somewhat higher for expansions than for start-ups. For the 6 years from 1988-93, the overall conversion rate from proposed to actual businesses was 36%. Better than one out of three proposed start-ups actually happened. This number does not include proposed expansions. Of the start-ups and expansions implemented during the 1988-90 period, 68% are still in operation in 1994.