Regulation, New Venture Creation, and Resource-Advantage Theory: An Analysis of the U.S. Brewing Industry
Regulation is an important means by which policymakers address social costs. However, recent research suggests that managing social costs often comes at the expense of entrepreneurial activity. We explore this duality by extending resource-advantage theory to examine the effects of excise taxes, small business tax credits and exemptions, and sales restrictions on rates of new venture creation in the U.S. brewing industry. Our longitudinal analysis of state-level brewery regulations reveals that taxes and sales restrictions have adverse but limited effects on new venture creation over time. Furthermore, tax credits and exemptions are positively associated with growth rates of new ventures.
government policy, growth, new ventures, regulation, Resource-Advantage theory
Friske, Wesley M., and Miles A. Zachary. "Regulation, New Venture Creation, and Resource-Advantage Theory: An Analysis of the US Brewing Industry." Entrepreneurship Theory and Practice 43, no. 5 (2019): 999-1017.
Entrepreneurship: Theory and Practice