The Business Launch Decision: An Empirical Investigation of Reasons for Not Starting a New Business

  • Howard E. Van Auken Iowa State University


This article presents  the results of a survey that examined the business launch decision.  All of the individuals in the study al/ended a workshop on how to evaluate a business idea and launch a new venture. All of the individuals who all ended the workshop were interested in, but decided against, launching a new venture. The results of the study indicate that time constraints, availability of capital, and risk tolerance are perceived as significant obstacles by potential new business owners. Significant differences in the ranking of obstacles were found relative to whether the individuals believed that the obstacles to launch could be overcome, age of the respondent, and whether the individuals had previously owned a business. In addition, individuals who were more highly educated and had previous business ownership were less likely to launch a new business subsequent to the workshop. The results of the study can be used by service providers and consultants who develop training programs that assist individuals in the screening of business ideas and launching of new firms. The results of the study also can be incorporated into college curriculum to provide students with insight into obstacles impacting on business launch.


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How to Cite
VAN AUKEN, Howard E.. The Business Launch Decision: An Empirical Investigation of Reasons for Not Starting a New Business. Journal of Small Business Strategy, [S.l.], v. 10, n. 2, p. 43-55, june 1999. ISSN 2380-1751. Available at: <>. Date accessed: 22 mar. 2018.