Differences between private firms owned by novice, serial and portfolio entrepreneurs: Implications for policy makers and practitioners

Policy makers can target 'hard' (i.e. financial) and 'soft' (i.e. technical) assistance to firms. Some policy makers and practitioners are considering whether resources could be more effectively utilized if they were targeted towards habitual entrepreneurs, rather than in the form of additional initiatives to increase the pool of pure nascent entrepreneurs and novice entrepreneurs. To inform this policy debate, similarities and differences between 354 firms owned by novice, serial and portfolio entrepreneurs in Scotland are highlighted with regard to the process of financing businesses, organizational capabilities as well as the size and performance of the surveyed businesses. Presented empirical evidence confirms that portfolio entrepreneurs have more diverse experiences and more resources than either serial or novice entrepreneurs. On average, portfolio entrepreneurs appear to offer more attractive growth prospects than other entrepreneurs. A case for targeted support tailored to the aspirations and needs of portfolio (and serial) entrepreneurs is presented.