Genetic Impairment of New Ventures

A. Introduction
While the relative importance of the small business sector to the economic growth of the US is still debated (Harrison, 1994), it is clear that the small business sector is important enough to warrant research and discussion. There are many reasons for the increase in importance of the small business sector. One of the most apparent reasons is the increase in information based resources which has lead to technological change favoring small firms. One of the more dramatic examples is steel making where large integrated fabricating facilities are being replaced by small firms (Starr, 1988). Other sources of small firm growth relative to large firm growth in the U.S. are: 1) the increased rate of outsourcing, 2) increase in deregulation, 3) computerization, and 4) changes in financial markets.
Although the emphasis has been on the job generating ability of the entrepreneur in the creation of these small businesses, the importance of small business goes be...