Research Of New Venture Identification

The Entrepreneurship Research has been growing mature increasingly duringthe development of past30years. Domestic entrepreneurship researchexperiences a gradual transition from a purely theoretical research to theempirical research after2004. The literature study shows that domesticscholars have great interest in exploring the effect mechanism of variousdimensions of entrepreneurship through empirical study. We can see thatsample selection is essential in empirical research of firms, and is directlyrelated to the final study results. The theoretical definition of the new venture inworldwide research should be based on two aspects: The life cyclecharacteristics and the temporal dimension of firms., However, in view of thedifficulty of data collection, most scholars define new ventures through firm agealone. According to research of entrepreneurial process, the description of thesamples is generally divided into two categories, one category is not focusedon sample selection, but a full description of the direct use of firm datacollected; the other is classification of the sample according to firm age.Mostscholars in entrepreneurship such as Biggadike (1979) and Kazajian&Drazin(1990) defined ventures survival in less than8years as new ventures.3.5and5years are also commonly used as the criteria of new ventures definition.Scholars do not make a scientific definition in the sample selection, so there isa significant difference in the time to define new ventures. Through thecorporate life cycle theory, we understand that the survival of the start-ups ishighly related with the resources, industries, environment and their strategies.This paper presents the research problem that there should be differences intime definition of new ventures in different social environment, differentindustries and also of different ownerships.This paper firstly summarizes the definition of new ventures，then conductsdata analysis of firm age. Employing data of firms of three major industries inJilin Province, this paper conductschi-square test analysis over the tree chosen industries to verify the assumption and finally come to the conclusionsas follows:(1) due to the different social environment of Chinese firms, weshould not directly define the firms as new ventures just based on their survivalwithin eight years;(2) Different industries should adopt different definitioncriteria of new ventures (3) different ownerships of new ventures should adoptdifferent definition criteria (4) single time dimensions to define the new venturecan not be applied to any industry. In accommodation and catering, the firmswithin five years may be defined as new ventures. In manufacturing, there isno significant difference in indicators of firm size and firms’ operation atdifferent ages, Therefore we can not define new ventures in this industry byfirm age.According to the above analysis, we believe that: the definition of the newventure should be based on the internal organizational structure, ownership，the degree of perfection of the systems, the current goal and strategy of firms，firms’ innovativeness and age. We can not consider the time dimension aloneas the criteria of defining new ventures in all industries, and it should be treateddifferently with different regions, different industries and different ownerships inthe selection of empirical sample.